Why PUMA terminated it’s four-year contract with Nigeria

By our reporter/ German sportswear manufacturing giants PUMA has terminated its four-year contract with the Athletics Federation of Nigeria.

In the letter of termination of Sponsoring and Licensing Agreement, issued on Wednesday PUMA said, “we are referring to the licensing and sponsoring agreement signed between our company and your federation”.

“PUMA especially declares to be discharged from any or all obligations towards all stakeholders involved and reserves all rights against these entities and individuals,” the statement added.

A significant section of the deal had 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 as Gusau, alongside Sunday Adeleye, technical director of the body, dragged to court by the Nigeria Police Force (NPF) for the alleged diversion of over $75,000.

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

In response to the development, Puma, in a letter addressed to the AFN, announced the sudden termination of the contract.

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.”