Michael Avenatti Threatened Nike with Loss of $5-to-6 Billion in Stock Value

As part of his alleged plan to extort the apparel company, Michael Avenatti threatened Nike that its valuation could drop by $5 billion or $6 billion if it failed to meet his demands, according to the Associated Press (via ESPN.com).

Avenatti pleaded not guilty in December to charges he attempted to get $25 million from Nike in return for suppressing information about improper payments made to college athletes.

The conversation between Avenatti and Nike's representatives was recorded. At one point during the discussion, he said he'd "go take $10 billion dollars off your market cap."

The AP reported his move came amid financial difficulties: "At the time, prosecutors say, Avenatti faced at least $11 million in debts. His former law firm office manager testified that finances were so desperate last March that his several employees had been evicted from their $50,000-a-month offices and were working from their homes."

Avenatti first announced last March he intended to hold a press conference detailing the information he discovered about Nike:

However, he was subsequently arrested, with prosecutors laying out the allegations of extortion.

Gary Franklin, a youth basketball coach who hired Avenatti, testified in the trial and told jurors he "never wanted to go public or have any press conference at all" and merely wanted to discover any wrongdoing at Nike, per Reuters' Jonathan Stempel.

Franklin also said he was hopeful Nike would return as a sponsor for his amateur basketball league. Avenatti allegedly never told his client of his attempts to first receive a monetary payment before addressing that concern.