Allegations that a former adidas executive used an N.C. State basketball coach to pay $40,000 to a former Wolfpack player — believed to be Dennis Smith Jr. — could result in a contract conundrum.
The school’s six-year contract with adidas, worth almost $39 million and signed in November 2015, states the sports apparel company can terminate the agreement immediately if the university is hit with NCAA sanctions or attracts publicity that has an “adverse effect” upon the university, the value of the university to adidas or adidas.
But what if those sanctions and adverse publicity were caused, in part, because of the illegal actions of an adidas employee?