Kits manufacturer, PUMA, has terminated its four-year contract with the Athletics Federation of Nigeria (AFN) following the failure of Team Nigeria athletes to wear its kits at the ongoing Tokyo 2020 Olympic Games.
The letter dated Wednesday 4th August 2021 and signed by the company’s director Manuel Edlheimb said “We are referring to the Licensing and Sponsoring agreement signed between our company and your federation.
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“As a direct consequence of the recent developments, particularly at the Tokyo Olympic Games 2020 and pursuant to clauses 9.2 and 7.3 of the Agreement, we hereby terminate the Agreement with immediate effect.
“PUMA especially declares to be discharged from any or all obligations towards all stakeholders involved and reserves all rights against these entities and individuals”.
It will be recalled that the Athletics Federation of Nigeria led by Engr Ibrahim Gusau signed a 4-year contract with PUMA in 2019 which was due to expire in 2022.
Therefore, indications are strong that PUMA may sue the federation for breach of the 2019 partnership deal signed in Doha.
It will also be recalled that Daily Trust had reported that Team Nigeria Athletics will not don the already supplied PUMA kits and this may cause the company to trigger a clause in the contract for a refund of N1.1bn.
A document sighted by our reporter states clearly that in case of breach of the contract, the AFN shall pay PUMA liquidated damage of 100% of the total sponsorship value which would otherwise be payable in respect of the contract years in which the violation occurred.
