Global merchandise company, Puma has terminated its 4-year deal with Nigeria over a kitting controversy that has dogged Nigeria’s participation at the Tokyo Olympics.
In the deal worth $2.76m and signed in July, 2019, Puma and the Athletics Federation of Nigeria (AFN) had entered into an agreement, of which has been a subject of investigation.
In the contract, PUMA agreed to supply apparel to all age categories of TeamNigeria for four years at no cost.
Further breakdown of the contract reveals that a gold medalist who wears the puma kit at the Olympic Games will earn $15,000, while silver medalist will get 5,000 and the bronze medalist will earn $3,000.
Meanwhile, Puma has announced its decision to terminate the contract. This was conveyed in a letter signed by puma’s International Sports Marketing Agency and addressed to the AFN, date Wednesday, 4th of August, 2021.
According to the merchandise company, the decision to terminate the contract was as a result of the failure of TeamNigeria to wear the Puma Apparel at the ongoing Tokyo2020 Olympics games.
The letter partly reads, “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.”
This action is coming after reports that Puma was unhappy with the AFN for kitting athletes with different brands as against the contract agreement signed in 2019.
The Ministry of Youth and Sports Development under the leadership of Minister Sunday Dare had refused to allow Team Nigeria to be kitted in the Puma wears, saying it was not privy to an agreement signed with the kit’s manufacturer.
The ministry had insisted that before Team Nigeria’s athletes are allowed to wear any foreign brand, it must sight and be privy to any agreement previously signed.
The ministry alleged that Mr Gusau, and former technical director of AFN, Sunday Adeleye had refused to disclose the contractual agreement they allegedly signed on behalf of AFN for five years without recourse to the board.