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    Adidas employee lawyer cites evidence showing US NCAA coaches knew of payouts

    Oct 19, 2018
    Former Adidas executive James Gatto arrives at federal court. Gatto and two co-defendants have pleaded not guilty to charges that they committed fraud by plying families of NCAA college basketball prospects with cash so the prospects would attend colleges
    PHOTO: ap

    NEW YORK — A lawyer for a longtime Adidas employee urged jurors Thursday (Friday, Manila time) to use common sense and evidence to conclude college basketball coaches like Bill Self at Kansas and Rick Pitino at Louisville knew shoe companies were paying money to families of elite athletes to steer them to their schools.

    Attorney Michael Schachter, representing Adidas sports marketing manager James "Jim" Gatto, cited testimony and evidence that emerged during the fraud conspiracy trial of Gatto, aspiring sports agent Christopher Dawkins and Merl Code, a former Adidas consultant.

    "Ladies and gentlemen, what help do you think a coach thought Jim Gatto was going to provide in persuading a kid to go to their college?" he asked. "Jim works for a shoe company. He is not a guidance counselor. Kids don't turn to him for assistance in where they should go to college."

    Assistant U.S. Attorney Edward Diskant, who has portrayed the schools and sometimes their coaches as victims of the defendants, said in a closing statement that coaches were not "running rampant."

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    "Nothing can be further from the truth," the prosecutor said, highlighting protocols in place at schools to ensure compliance with NCAA rules.

    He said the defendants hid payments from coaches, knowing they would be fired if they facilitated payouts to players' families.

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    "Does that mean that some of the coaches didn't break the rules? No, it's possible they did," Diskant said.

    The prosecutor noted that there was no mention of money in two voice messages Gatto left for Pitino. He also cited evidence that Dawkins, speaking of a financial payout, told the Bowen family: "I would never tell Rick anything like this because I don't want to put him in jeopardy."

    Schachter told jurors that the government's star witness — former Adidas consultant Thomas "T.J." Gassnola — lied when he testified that he was concealing from universities the fact that cash was being paid to the families of top recruits.

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    He cited Gassnola's testimony about a North Carolina State assistant coach. Gassnola, who pleaded guilty to criminal charges and cooperated with prosecutors, told jurors that he delivered cash in 2015 to Coach Orlando Early, who planned to give it to a personal trainer for highly touted point guard Dennis Smith Jr. so it could be relayed to the athlete's family.

    Schachter said evidence shows that Self "knew of and asked for a payment to be made to Silvio De Sousa's handler."

    The lawyer added: "More than that, Coach Self requested just that kind of help that Mr. Gassnola arranged as a condition for Coach Self to permit Adidas to continue their sponsorship agreement with the University of Kansas."

    Schachter also cited a conversation his client had in late May 2017 with Pitino, saying it occurred just after Code told Gatto that he needed money for the family of Louisville recruit Brian Bowen Jr. because the University of Oregon, a Nike school, had made an "astronomical offer" to recruit him.

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    Schachter said Gatto wanted to be sure Pitino wanted Bowen before he spent his employer's money.

    "Why, precisely, would Louisville's head coach think that a shoe company representative wants to speak with him about a player?" Schachter asked. "Ladies and gentlemen, I submit to you that the only explanation that makes any sense is that Coach Pitino knows exactly why Jim is calling to discuss a player."

    Bowen committed to Louisville on June 1, 2017, though he never played for the school. He now plays professionally in Australia. Pitino, a legendary coach, was never accused of a crime but was fired amid the investigation's fallout.

    North Carolina State announced last year that Early and the school's head coach were leaving the program months before the corruption case became public.

    Smith played one year at NC State. He now plays for the NBA's Dallas Mavericks.

    De Sousa is a sophomore at Kansas.

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    The jury is likely to start deliberations Monday.

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    Former Adidas executive James Gatto arrives at federal court. Gatto and two co-defendants have pleaded not guilty to charges that they committed fraud by plying families of NCAA college basketball prospects with cash so the prospects would attend colleges
    PHOTO: ap
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