Sources: IMG Boss Teddy Forstmann Paid Accuser Hush Money

Teddy Forstmann, CEO of sports management behemoth IMG, paid his chief accuser and alleged middleman on sports bets $575,000 in hush money over the past 18 months, sources told FanHouse's Greg Couch. Jim Agate is suing Forstmann (right) -- Agate's second lawsuit against the IMG head -- alleging the CEO broke a business agreement with Agate's printing business.

Agate's original lawsuit against Forstmann -- which was reportedly "thrown out" -- although it does not distinguish whether the suit was dismissed or settled -- claimed Forstmann used Agate as his go-between with Costa Rican gambling houses. FanHouse has reached out to IMG for comment on the new allegations, but as of Thursday evening, no response has been received.

Agate claims that he placed bets for Forstmann on several athletes who are also IMG clients, including golfers Tiger Woods and Vijay Singh and tennis superstar Roger Federer. Agate also claims that Forstmann received inside information from Federer, who has denied the allegations, as well as other star athletes in the IMG stable to place bets on NFL games, the NCAA basketball tournament, NBA, golf, baseball, tennis, college football and the NHL.

Greg Couch: Forstmann Alleged to Have Used Hush Money to Quiet Accuser

In the only interview he's given, Forstmann told the Daily Beast that Agate is a "scumbag lowlife'' and "shakedown artist.'' IMG VP Jim Gallagher called Agate a "whackjob.''

In the new lawsuit, Agate charges that he placed almost 600 bets for Forstmann, including more than $150,000 on the 2007 NCAA basketball tournament alone, as well as laid down $40,000 on Federer to beat Rafael Nadal -- also an IMG client -- in the 2007 French Open final, which Gallagher corroborated.

While Forstmann has admitted to betting on some sporting events, he has not acknowledged using Agate as facilitator to place those bets, which Agate claimed in his original suit.

Writes Couch: "A sport depends on its credibility, that games are played fairly and that players are playing by the rules. Forstmann is a big player, whether on the court or off, and isn't playing by the rules. He is putting suspicion in the minds of fans, and once that suspicion is there, it's hard to get past it.

"The sports world has a huge problem on its hands, as Forstmann so recklessly and arrogantly has placed himself above the rules, and above conflicts of interest."