Former Fifa president Sepp Blatter has denied approving fraudulent payments to Michel Platini, saying that a 2011 transfer followed a “gentleman’s agreement” between the pair.
Prosecutors claim a 2m Swiss francs (£1.6m) payment made by Blatter to ex-Uefa president Platini was unlawful.
Both men, who deny wrongdoing, are on trial in Bellinzona, Switzerland.
The start of the trial was delayed by a day on Wednesday after Blatter said he was too ill to testify.
He told the court he had chest pains and was having “difficulty breathing”.
The 86-year-old gave his testimony on Thursday and said he asked Platini to be his adviser when he was first appointed president of football’s world governing body in 1998.
He said former France captain Platini wanted 1m Swiss francs (£816,030) per year but Blatter told him Fifa could not afford that fee.
They instead settled on 300,000 Swiss francs (£244,809) per year, with the outstanding total to be paid at a later date.
“I knew when we started with Michel Platini that is not the total, and we would look at it later,” Blatter told the court, adding they shook hands on their “gentleman’s agreement”.
He added: “It was an agreement between two sportsmen. I found nothing wrong with that.”
Three-time Ballon d’Or winner Platini, 66, said: “I trusted the president, and knew he would pay me one day.”
Platini stopped working for Fifa in 2002 but did not pursue the payment until 2010, telling the court he had not needed the money at the time of his departure, when – according to Blatter – Fifa was in any case “broke”.
However, Platini later heard that two former employees had received substantial payments and approached Fifa, who he said told him to send an invoice. He did so in January 2011, with the money paid 10 days later after approval by Blatter.
The pair were banned from football in 2015 and indicted in November last year.
The Swiss Office of the Attorney General accused Blatter and Platini of “fraud, in the alternative of misappropriation, in the further alternative of criminal mismanagement as well as of forgery of a document”.
Platini, who was also charged as an accomplice, said he felt the ban was a deliberate attempt to stop him from becoming Fifa president in 2015.
The trial is due to conclude on 22 June, with a verdict expected on 8 July.
If found guilty, the defendants could be jailed for up to five years or fined.