German World Cup graft claims close to home for Adidas

Allegations that Germany bribed its way to secure the right to host the 2006 World Cup not only shook the football world, but also shone a spotlight on cosy ties between sportswear giant Adidas and FIFA.
At the heart of the latest graft claims to rock world football is a 10.3 million Swiss francs payment made in 2000 by Adidas's former boss Robert Louis-Dreyfus to the German Football Federation (DFB).
News weekly Der Spiegel claimed in a report late last week that DFB borrowed the sum in order to buy the votes of four Asian members of FIFA's 24-strong executive committee.

The magazine claimed the DFB subsequently transferred 6.7 million euros -- the equivalent of the borrowed Swiss francs at the time -- to a FIFA account in 2005 to repay Louis-Dreyfus.
The DFB has denied the claims, while Adidas has sought to distance itself from the case.
"We are not aware of such a payment by Robert Louis-Dreyfus," said the brand with the three-stripes logo. "We can rule out that it was a business operation of Adidas AG."

In other words, Louis-Dreyfus could have used his own money, and not company funds, an Adidas spokesman told AFP.
- 'Some impact on reputation' -

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Investment bank Berenberg's analyst Zuzanna Pusz warned that the German magazine's claims "could have some kind of impact on their reputation".
No legal consequences have arisen from the case so far, as German prosecutors said Monday they were still examining whether there were grounds to launch a probe.
But the wealth of French businessman Louis-Dreyfus, who died in 2009, has been dogged by controversy.
In 2001, he transferred millions to the former president of Bayern Munich, Uli Hoeness.
The recipient has claimed it was a private gift for him to gamble on the stock market.
Critics have speculated the sum was the price to keep the prized Bundesliga side out of the reach of Adidas's US rival Nike, a claim Hoeness has denied.

This time, the charismatic businessman's dealings are being exposed at a time when FIFA is in its deepest crisis over far-reaching corruption scandals that have already left 14 football officials arrested, the governing body's chief Sepp Blatter suspended and the awarding of at least two World Cups under investigation.