Ex-Stormy Daniels lawyer Michael Avenatti is heard on a wiretapped phone call warning Nike he would 'blow the lid' on a college basketball scandal as he allegedly attempted to extort millions from the company.

Avenatti is currently at trial in New York accused of attempting to shake the sports brand down for $25 million in return for his silence on claims they were making illegal payments to college basketball stars.

Nike claims the California lawyer, famous for representing ex-porn star Stormy Daniels in her case against President Donald Trump, threatened to create a 'media scandal' causing billions of dollars worth of damage to stock if the brand didn't pay up.

The company denies any wrongdoing.

Attorney Michael Avenatti arrives at Manhattan federal court in December 2019 where he was indicted with charges of extortion. Nike claims he attempted to extort between $20 and $25 million from the sportswear brand in return for his silence on a college basketball scandal

Nike has denied all wrongdoing and rejects the claims Avenatti made in their conversations

Avenatti, 48, was arrested in March 2019 and charged with trying to extort millions of dollars from Nike and with defrauding the company. He faces two charges of extortion and one of wire fraud.

Evidence includes secret recordings of Avenatti allegedly making threats, which prosecutors said were made after Nike brought his activity to their attention.

The lawyer maintains he is innocent and says he's been unfairly targeted because of his former representation of porn star Stormy Daniels in lawsuits against President Donald Trump.

On Friday, a 20-minute phone call was played at the trial in Manhattan Federal Court in which Avenatti can be heard telling Nike's attorney Scott Wilson he is 'not f*****g around'.

Recorded on March 20, 2019, Nike claims the wiretapped phone call between Avenatti, celeb attorney Mark Geragos, and Wilson is proof of Avenatti's attempts to extort the company.

Avenatti and Gergaros were representing Gary Franklin, a college basketball coach-turned-whistle-blower who claimed sneaker and sportswear brands were illegally funneling money to the families of NBA prospects.

Assistant U.S. Attorney Robert Sobelman (standing) points to Michael Avenatti (far left) as he makes opening remarks during the Nike extortion trial in New York on January, 29, 2020

This courtroom sketch shows Scott R. Wilson, former Boies Schiller attorney whose client is Nike, testifying during trial for Michael Avenatti in New York, Wednesday January 29, 2020

Prosecutors said Avenatti threatened to hold a press conference, based on information from his client, accusing Nike officials of making and trying to conceal illegal payments to families of the top college basketball recruits.

Franklin's team, California Supreme, had been in the Nike Elite Youth Basketball League.

Avenatti's ultimatum for keeping quiet about the college basketball scandal involved Nike hiring him and fellow attorney Geragos for an internal investigation into the potential corruption. The investigation would cost between $20 and $25 million.

'I'm not f--king around with this, and I'm not continuing to play games. And I don't — you know, this isn't complicated. You guys know enough now to know you've got a serious problem,' Avenatti said on the call.

'And it's worth more in exposure to me to just blow the lid on this thing. A few million dollars doesn't move the needle for me. I'm just being really frank with you.

'I'll go and I'll go take and I'll go take $10 billion off your client's market cap. But I'm not f*****g around.'

Avenatti claims prosecutors were quick to indict him on extortion charges because he represented former porn star Stormy Daniels' (pictured) against President Donald Trump

Attorney Mark Geragos also represented Wilson and was on the call but has not been charged

Avenatti allegedly agreed not to hold the press conference if Nike would pay Franklin $1.5 million, and also pay Avenatti $15 million to $25 million to conduct the internal probe.

Avenatti faces two extortion-related counts. He is also charged with honest services wire fraud for allegedly concealing from Franklin a settlement offer made by Nike, and using the coach's accusations to extract riches for himself.

Nike has denied any wrongdoing and Geragos has not been charged.

The company's attorney Scott Wilson testified on Thursday claiming that his jaw hit the floor when he first head Avenatti's demands.

'What I thought I was engaging in was a stickup,' said Wilson.

'I thought this was a crazy thing to be saying to me. We were in the Twilight Zone.'

Wilson claims he thought Avenatti was wearing a wire when he first presented his ultimatum but that he opened his jacket to prove he was not.

'I was slightly concerned I was being asked to do something wrong and maybe he was recording to get me in trouble,' Wilson said.

'I was really quite shocked.'

Wilson said he immediately reported the conversations to prosecutors and an investigation began which involved wiretapping a conversation between Wilson and Avenatti two days later.

During that meeting, Avenatti offered to go away entirely if Nike made a $22.5 million payment to him, Wilson said.

Avenatti claims that it violates the constitutional right to free speech under the First Amendment for a civil lawyer to be prosecuted for threatening to truthfully expose misconduct by Nike that directly related to his client's claims.

He has also said the honest services fraud charge should have been dismissed because there were no bribes or kickback and that prosecutors rushed to indict him because of his high-profile case with Daniels.

Avenatti has pleaded not guilty to three criminal counts. He could face 40 years in jail if convicted but would likely receive less.

The California lawyer also faces separate charges in Manhattan where prosecutors claim he stole $300,000 from Daniels after helping her secure a book contract. Avenatti no longer represents Daniels.

The most serious criminal case Avenatti faces is in southern California.

Prosecutors there accused him of stealing millions of dollars from clients, lying to the Internal Revenue Service and a bankruptcy court, and defrauding a bank. Avenatti faces up to 335 years in prison if convicted, but again would likely get less.

Avenatti has pleaded not guilty in the Daniels and California cases.