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Nike CEO informed about doping experiments, arbitrator finds

NIKE Inc.'s Chairman, President and CEO Mark Parker and at least one other top company official were informed of experiments on the use of performance-enhancing drugs by a company-backed coach and doctor, according to reports released by the U.S. Anti-Doping Agency on Sept. 30.

The reports released by the agency, written by the American Arbitration Association, alleged that Nike Oregon Project's head coach Alberto Salazar, and physician and consultant Jeffrey Brown conducted experiments that violated anti-doping rules, including an experiment testing whether the use of AndroGel, a topical testosterone gel, would cause a positive result in a drug test. Nike Oregon Project is a running training group established by the footwear company.

Salazar and Brown were each handed a four-year sanction for "orchestrating and facilitating prohibited doping conduct," following evidentiary hearings involving the U.S. Anti-Doping Agency, according to a Sept. 30 announcement from the agency. The U.S. Anti-Doping Agency, also known as USADA, is the national anti-doping nongovernmental organization in the U.S. for Olympic, Paralympic, Pan American, and Parapan American sports. The hearings and sanction recommendations were conducted by the American Arbitration Association, a third-party arbitrator designated by USADA, Salazar and Brown according to the reports.

On multiple occasions, Parker was notified of the progress of the experiments, according to emails cited in the reports. One of those emails was also sent to Tom Clarke, Nike's president of advanced innovation, according to the arbitrator.

In an email to Brown on July 7, 2009, Parker wrote, "Thanks for the update on the tests. It will be interesting to determine the minimal amount of topical male hormone required to create a positive test. Are there other topical hormones that would create more dramatic results ... or other substances that would accelerate the rate of absorption into the body?" according to one of the reports.

USADA also argued that "it is undisputed that the testosterone experiment occurred in [Nike's] laboratory," according to one of the arbitrator's reports. The documents were first published by The Wall Street Journal on Oct. 1.

Nike did not immediately respond to S&P Global Market's Intelligence request for comment.