https://www.oregonlive.com/business/2019/02/basketball-bribes-how-adidas-bankrolled-a-black-market-for-top-teenage-talent.html
The scheme began in October 2016 with a meeting at the Oread Hotel in Lawrence, Kansas, during a basketball recruiting event called Late Night in the Phog. Gassnola, there on behalf of Adidas, invited Preston’s mother to his room to discuss money, he testified.
Stop taking money from other people, Gassnola recalled telling her. “Just come to me, and I’ll take care of it.”
Gassnola testified that he told Gatto about his plan to pay Preston’s mom, and later specified that he would make an initial payment of $30,000. Gatto approved that payment and all others, Gassnola told jurors.
Two weeks later, Gassnola submitted an invoice for a “Basketball Team Tournaments Fee” for $50,000. No one at Adidas balked, even though tournament fees typically cost $500 to $1,000, Gassnola testified.
Gatto approved the invoice and handed it off to an administrative assistant, with the direction: “Please process for payment.” Adidas deposited the money into Gassnola’s account for the New England Playaz.
assnola then met Preston’s mother at a hotel in New York City the first week of November. He handed her an envelope with $30,000 cash from Adidas, he testified, then spent the remaining $20,000 buying tickets to the Super Bowl and the college football championship game.
A few weeks later, on Nov. 18, Preston publicly announced his commitment to Kansas.
More money from Adidas followed.
Gassnola submitted a $90,000 invoice to Gatto in January 2017, this time for a consultant fee and travel and expenses for the first quarter.
Gatto approved it and once again directed an administrative assistant to process the payment. Adidas deposited the money, and Gassnola promptly withdrew a portion, $27,500.
Gassnola testified that he arranged a handoff inside his hotel room on the Las Vegas strip, where he was staying for an annual Adidas event for administrators of grassroots basketball clubs. Gassnola said he gave Preston’s mom $20,000 cash and kept the remaining $7,500 for gambling and shopping.
Such perks were apparently commonplace for Gassnola. He testified that Gatto told him to keep expenses in check. But Gassnola said he didn’t listen, insisting to “stay in nice hotels, fly first class, rent nice cars.”
Gassnola said Gatto told him to submit itemized receipts. He didn’t.
“He would reprimand me,” testified Gassnola, who reported $200,000 to $300,000 in annual expenses. “He would tell me, ‘You can’t do this, you have to do it a certain way.’”
Adidas kept the money flowing anyway.
Gassnola submitted a $70,000 invoice to Gatto in May 2017 labeled “Tournament Activation/Fee.”
Gatto approved the invoice and directed a staffer in the grassroots division to process the payment. Adidas deposited the money into Gassnola’s account for the New England Playaz.
Gassnola soon wired $15,000 to Preston’s mom instead of arranging a cash handoff. “I got lazy,” he testified. Gassnola testified that he paid $90,000 total to Preston’s family.
In all, Adidas issued 26 payments to Gassnola or Gassnola’s New England Playaz over a two-year period ending in August 2017, according to records released by prosecutors. The sum: $1,001,331.67.