SIDELINED: Despite Italy’s recent World Cup victory, not everybody in the soccer world is in a celebratory mood. Take Tod’s chief, Diego Della Valle, for instance. He and his brother, Andrea, charged with match-fixing, will be stripped of their managerial powers at soccer team ACF Fiorentina (Diego for three years and nine months and Andrea for three years). An Italian federal appeals court issued its verdict late Tuesday night, the latest development in a wide-reaching corruption scandal involving Fiorentina and three other professional teams: Juventus, Lazio and Milan. The federal court lightened the initial punishment for all the teams and restored them, except Juventus, to top-tier Serie A status. The Della Valles got months shaved off their individual sentences, but each is now facing a fine — Diego must pay 55,000 euros ($69,300) and Andrea, 35,000 euros ($42,000). Lighter punishments notwithstanding, Diego is not happy and plans to appeal. “It’s the first step. We didn’t do anything and we’ll take on all of the possible paths to demonstrate our innocence,” he said on Fiorentina’s Web site.

LIGHT BRIGHT: Hedi Slimane may not have concluded prickly talks to renew his contract at Dior Homme, but the men’s wear star certainly has some bragging rights in the music department. The song “In the Morning” by British band Razorlight, which Slimane commissioned for his Dior Homme fashion show last January, has been topping singles charts in the U.K.

KELLY GRAY RETURNS: “I’m definitely going back into business,” Kelly Gray said Wednesday, responding to a report in the New York Post. The former St. John co-president and model is partners with a well-known male recording artist — she wasn’t quite ready to say whom — in designing and merchandising a line of contemporary sportswear called Royal Underground that will sell in a handful of specialty boutiques nationwide next year. “I was happy to take a year off, but my partner had a passion for this business that I have only seen in the mirror,” said Gray, who exited St. John last July. “We design everything together, down to the color of the thread.’’ Gray declined to confirm whether she or her partner would appear in print ads, as she did for St. John. “The marketing behind this is going to be the most exciting thing I’ve done in five years.”

This story first appeared in the July 27, 2006 issue of WWD. Subscribe Today.

SECRET GARDEN: Hedges typically belong at clambakes in the Hamptons. Not so on Tuesday night, when Julia Stiles, Stanley Tucci, Theodora Richards and Royston Langdon attended the Hugo Boss Roof Garden Party atop the company’s Chelsea headquarters. The star-lit venue channeled the Queen of Hearts as revelers partied among a topiary menagerie and red-and-white rose-covered wall. The fete’s exquisite greenery aside, guests boogied to the turntable stylings of Carlos D and Mylo. Even Scarlett Johansson dropped by, skipping out early from the nearby launch party for her new line for Reebok (see page 12 for more on Johansson’s bash).

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