PUMA, the German sportswear manufacturer, has ended its four-year partnership with the Nigerian Athletics Federation.
The AFN, led by Ibrahim Gusau, reportedly entered a controversial $2.76 million contract with Puma on July 24, 2019, in Doha, according to the PUNCH.
The agreement sparked a huge issue, dividing the athletics organization into two parts, with both Gusau and Adeleye accused of excluding other board members during the signing process.
The agreement, which was signed by Gusau’s AFN, was set to expire in 2022.
Under the terms of the agreement, PUMA will provide Nigeria’s Athletics team with free gear for all age groups for the next four years.
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Additionally, gold medalists at the Olympic Games will receive $15,000, silver medalists will receive 5,000, and bronze medalists will receive $3,000 for wearing PUMA attire at the games.
In a letter dated Wednesday, August 4, 2021, and signed by the company’s director Manuel Edlheimb, PUMA terminated the contract.
The contract was terminated due to Nigerian competitors’ inability to wear the brand at the ongoing Tokyo 2020 Olympics, according to PUMA.
The Federal Ministry of Youth and Sports, according to the PUNCH, has refused proposals for Team Nigeria athletes to wear the kits over, citing the contract as “a subject of a criminal investigation.”
PUMA, in the letter of termination of Sponsoring and Licensing Agreement, said, “We are referring to the licensing and sponsoring agreement signed between our company and your federation.
“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”.
Our correspondent could not immediately verify whether damages would be paid or kits already given to the AFN would be rejected.
The PUNCH had reported the sports ministry’s insistence that Nigerian athletes to the Tokyo2020 Olympics will not wear PUMA because of a leadership tussle between the Ibrahim Gusau led AFN board and the one being championed by the minister.
It was learnt that several efforts were made to give the athletes the PUMA kits, including shipping bags of kits with 40 items each to Tokyo through the Nigerian Embassy in Japan but to no avail.
PUMA deal in order, DSS tells sports ministry
Meanwhile, the Department of State Security last year cleared Gusau and his vice president Sunday Adeleye over corruption allegations levelled against him by the sports ministry, The PUNCH has learnt.
The sports in 2020 ministry petitioned the DSS over the AFN’s partnership deal with Puma to kit Nigeria’s track and field teams until 2023.
The DSS, in a response to the sports ministry’s petition titled “Re: Federal Ministry of Youth and Sports Development (FMYSD), Athletics Federation of Nigeria (AFN) and Alhaji Shehu Gusau”, dated September 3, 2020, and signed on behalf of the Director General of the DSS by Bello Mustapha, was received on September 4, 2020 by the sports ministry.
In the letter, which was seen by our correspondent, the DSS stated, “This Service (DSS) has thoroughly investigated the matter regarding the Puma deal. The under-listed findings were established:
“Athletics Federation of Nigeria entered into a valid contract with Dynamic Sports Solution Nigeria Limited.
“The AFN gave Dynamic Sports Solution Nigeria Limited the mandate to source for sponsors for Nigeria’s track and field teams on her behalf in a letter dated September 4, 2018, signed by Ademu A. Elijah, Secretary General of the AFN.
“The AFN duly authorised Dynamic Sports Solution Nigeria Limited to deal with Puma on behalf of the federation in a letter dated June 23, 2019, signed by Patrick Estate, Head Marketing; and there is no evidence that Dynamic Sports Solution Nigeria Limited received money meant for AFN from Puma.
“In view therefore, it is reiterated that the FMYSD and the AFN board should employ internal mechanism to resolve the lingering dispute between them.”
Ministry shuns AFN peace move, heads to Supreme Court
The Ministry of Youth and Sports Developmentearlier shunned reconciliatory moves by the Athletics Federation of Nigeria and headed to the Supreme Court to contest an Appeal Court judgment, which recognised Ibrahim Gusau as the president of the AFN.
The move comes a day after The PUNCHreported the AFN saying they were ready for negotiations with the sports ministry for peace to reign in the federation.
Gusau also dragged the sports ministry to the Federal High Court in Abuja, with the court ruling July 1 that he remained the AFN president.
The Appeal Court also affirmed the High Court ruling, throwing out the sports ministry’s appeal for lacking merit September 25.
A source in the sports ministry said two Senior Advocates of Nigeria would lead the ministry’s legal team.
