Puma Terminates 4-Year Contract With AFN After Tokyo Olympics Drama

Puma, the German sportswear manufacturing company, has pulled
the plug on the 4-year kits sponsorship contract with the Athletics
Federation of Nigeria (AFN).

The contract was signed on July 24, 2019, in Doha by the AFN
board under Ibrahim Gusau.

It was expected to expire in 2022 and has been the genesis of a
major crisis that the athletics body is battling to date.

A significant section of the deal stated that Puma will supply
kits to all age categories to Nigeria’s athletics team for four
years.

The contract also includes monetary rewards for Nigerian
athletes who wear the sportswear during medal presentations at the
Olympics games — with gold medalists earning $15,000, silver
medalists getting 5,000 while a bronze medal will attract
$3,000.

However, the contract has led to an ongoing legal battle between
the sports ministry and the factional board of AFN.

In addition, Gusau, alongside Sunday Adeleye, technical director
of the body, was dragged to court by the Nigeria Police Force (NPF)
for the alleged diversion of over $75,000.

Consequently, the ministry failed to allow the Nigerian
athletics team to don the Puma branded apparel at the ongoing Tokyo
Olympics, arguing that it’s “a subject of a criminal
investigation”.

Reacting to the latest development, Puma, in a letter addressed
to the AFN, announced the sudden termination of the contract —
about two years after it was signed.

The letter, dated August 4, added that the premature ending of
the deal is due to Nigerian athletes’ inability to wear the brand
at the ongoing Olympics.

“We are referring to the licensing and sponsoring agreement
signed between our company and your federation,” the letter
read.

“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.”

Puma, the German sportswear manufacturing company, has pulled
the plug on the 4-year kits sponsorship contract with the Athletics
Federation of Nigeria (AFN).

The contract was signed on July 24, 2019, in Doha by the AFN
board under Ibrahim Gusau.

It was expected to expire in 2022 and has been the genesis of a
major crisis that the athletics body is battling to date.

A significant section of the deal stated that Puma will supply
kits to all age categories to Nigeria’s athletics team for four
years.

The contract also includes monetary rewards for Nigerian
athletes who wear the sportswear during medal presentations at the
Olympics games — with gold medalists earning $15,000, silver
medalists getting 5,000 while a bronze medal will attract
$3,000.

However, the contract has led to an ongoing legal battle between
the sports ministry and the factional board of AFN.

In addition, Gusau, alongside Sunday Adeleye, technical director
of the body, was dragged to court by the Nigeria Police Force (NPF)
for the alleged diversion of over $75,000.

Consequently, the ministry failed to allow the Nigerian
athletics team to don the Puma branded apparel at the ongoing Tokyo
Olympics, arguing that it’s “a subject of a criminal
investigation”.

Reacting to the latest development, Puma, in a letter addressed
to the AFN, announced the sudden termination of the contract —
about two years after it was signed.

The letter, dated August 4, added that the premature ending of
the deal is due to Nigerian athletes’ inability to wear the brand
at the ongoing Olympics.

“We are referring to the licensing and sponsoring agreement
signed between our company and your federation,” the letter
read.

“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.”