Essential Ndubuisi
German sportswear manufacturing giants PUMA will sue the Athletics Federation of Nigeria and Federal Ministry of Youth and Sports.
The sportswear manufacturer had terminated the four-year contract in a letter dated Wednesday, August 4, 2021, and signed by the company’s director Manuel Edlheimb.
Reports indicate that the AFN under the leadership of Ibrahim Gusau had entered into a controversial $2.76m deal with Puma on July 24, 2019, in Doha.
The deal led to a major crisis that split the athletics body into two factions, with both Gusau and Adeleye accused of sidelining other members of the board during the signing of the deal.
The deal, signed by Gusau-led AFN, was due to expire in 2022.
Part of the contract is that PUMA will supply apparel to all age categories to Nigeria’s Athletics team for four years at no cost.
In addition, gold medalists at the Olympic Games will earn $15,000, silver medalists will get 5,000 while a bronze medal will fetch athletes wearing the PUMA apparel at the games $3,000.
PUMA said Nigeria breached provisions of the contract by not wearing the kits at the Tokyo 2020 Olympics.
This, the sportswear manufacturer, said is against clauses 9.2 and 7.3 of the Agreement.
Sources gathered that PUMA officials have got in touch with officials of Gusau-led AFN informing them of an intention to sue.
A source said that the sports ministry would be made a party to the suit “because they issued a memo granting AFN permission to seek sponsorship. PUMA sees AFN as a representative of Nigeria with that memo. It gave them confidence that AFN had approval. They also claimed that as of the time of signing the contract, the parties involved are recognised by law and FG, and there was no faction to warrant suspicion. They believe an administration is a continuum and the agreement has government backing..”
The AFN First Vice President, Sunday Adeleye, confirmed this while appearing on Arise TV as a guest on Thursday.
While displaying evidence and documents showing the FG’s approval for the federation to seek a sponsor, Adeleye said, “The contract is a non-disclosure one. It is between PUMA and AFN with FMYSD’s permission. We warned that this may lead to litigation and wrote to all parties involved, including finance and justice ministries.
“We are sure that PUMA will go to court on this matter. Their officials have called that they are sending documents from their legal department. We wrote the minister on the implications for Nigeria. This won’t make other companies deal with Nigeria.”
