“The dark underbelly of college basketball.”64 College basketball is big business for the NCAA (National Collegiate Athletic Association). The annual tournament to crown the national champion of college basketball—the “big dance”—is the major source of income for the NCAA. However, a scandal was unfolding that would tarnish the reputation of some elite college basketball programs and would end the coaching career of one of college basketball’s most well-known coaches.

A sweeping FBI investigation alleging fraud and bribery at NCAA powerhouse basketball programs encompassed coaches, agents, financial advisors, and athletic shoe company employees. Federal investigators in New York uncovered a thriving underground market for top high school basketball prospects. For example: A sports agent arranged for a $100,000 payout to the family of a top high school prospect if he would commit to a certain major university and sign with a certain apparel company once he turned pro.65 And this was just one example. Several other allegations were cited by the federal investigators.

In the athletic apparel business, getting your shoes and apparel on professional athletes—unarguably, the most valuable “breathing” billboards ever—can pay off in a big way. The product choices of these pros can have an immediate and long-term influence over consumers’ purchasing decisions. Just look at the popularity over the years of Michael Jordan’s Air Jordans shoes made by Nike or Stephen Curry’s Curry shoes from UnderArmour. For the athletic sneaker companies, locking in potential top players to your brand was only smart business. Because NCAA rules prohibit players to be openly compensated, well...there was too much money at stake for those accused to play by the rules...or so they thought. Adidas executives were among those accused of wire fraud and money laundering. A spokesperson for Adidas said that “the company is committed to compliance and ethical business practices.”66 Four assistant coaches at prominent college basketball programs were arrested along with an Adidas executive, a financial advisor, and others. Then, probably the biggest name claimed by the scandal has been Louisville’s head coach Rick Pitino. When the allegations that implicated his program came to light, Pitino was immediately suspended and ultimately fired. According to NCAA guidelines, coaches are responsible for the conduct of their assistant coaches and players.

What now? Adidas has said it is cooperating with the investigation. Lawyers for the defendants have argued that the federal government has tried to “transform NCAA rule violations into a conspiracy to commit federal wire fraud.”67 A judge is scheduled to hear arguments about dismissing the charges based on “defendants’ arguments that no one was hurt, and no law was broken.”68 Finally, the NCAA formed a commission to consider making “substantive changes” to the way the business of college basketball operates. It wants to examine the areas that led to the misdeed alleged in the criminal charges. A couple of areas this commission will be looking at include the sport’s relationship with athletic apparel companies as well as the “one and done” rule in which players can leave for the pros after a single year of college. NCAA’s president said, “We must take decisive action. This is not a time for half-measures or incremental change.”69