After terminating $2.7m deal, Puma to sue Nigeria over breach of contract

After terminating $2.7m deal, Puma to sue Nigeria over breach of contract

Sports wear manufacturing giant, Puma plans to sue the Athletics Federation of Nigeria (AFN) and the Federal Ministry of Youth and Sports.

Technical director of the factional Athletics Federation of Nigeria (AFN) board, Sunday Adeleye, made this known in an interview on Thursday, saying the German sportswear company will drag AFN to court for breach of contract.

The sportswear company on Wednesday terminated the 4-year kits sponsorship contract with the federation, citing the failure of Nigerian athletes’ to wear the brand at the ongoing Tokyo Olympics.

Speaking on Arise TV on Thursday, Adeleye said Puma have been “sending documents from their legal department” adding that the company “will go to court.”

 

 

 

 

 

 

 

 

 

 

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“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” he said.

According to a source quoted by The Punch, 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..”