German sportswear manufacturing giants PUMA have announced the termination of its four-year contract with the Athletics Federation of Nigeria (AFN).
Africa Daily News, New York gathered 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 was reportedly the reason for the major crisis that has now 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.
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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 terminated the contract in a letter dated Wednesday, August 4, 2021, and signed by the company’s director Manuel Edlheimb.
According to PUMA, the termination of the deal as a result of Nigeria’s athletes’ inability to wear the brand at the ongoing Tokyo 2020 Olympics.
Africa Daily News, New York further gathered that the Federal Ministry of Youth and Sports rejected offers for the Team Nigeria athletes to wear the kits over, saying the contract is “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’.
AFRICA DAILY NEWS, NEW YORK
