German Sports wear manufacturer, PUMA is to sue the federal government of NIgeria represented by the ministry of youth and sports and the Athletics Federation of Nigeria, AFN for breach of contract, PurpleWorld can report.
The intending law suit is contained in a letter released by PUMA on Wednesday terminating $2.7 million four-year contract it signed with the AFN and the federal government few years ago.
In the letter made available, Puma Said the termination is sequel to the refusal of the Team Nigeria to wear its kits at the ongoing Tokyo Olympics in Japan.
The letter dated Wednesday 4th August 2021 and signed by the company’s director Manuel Edlheimb, PUMA said it was officially notifying the Athletics Federation of Nigeria of its termination of Sponsoring and Licensing Agreement.
“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.”
The statement added that PUMA “Reserves all rights against these entities and individuals”.
The Athletics Federation of Nigeria under the leadership of Engr Ibrahim Gusau signed a 4 year contract with PUMA in 2019 and was due to expire in 2022.
Part of the contract is that PUMA will supply apparels 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 $3000.
The minister of Youth and sports Sunday Dare had vowed in a statement that Nigerian Athletics to the Games will not wear PUMA because of a leadership tussle between the Ibrahim Gusau led AFN board and the one being championed by the minister.
Several efforts were made to give the athletes the PUMA kits including shipping bags of kits with 40 items each to Tokyo through the Nigerian Embassy in Japan but Mr Dare wrote to the Ambassador stopping him from sending the kits to the athletes.
It will be recalled that on September 3, 2020 the Department of State Services DSS cleared the Ibrahim Gusau led board and its marketing firm Dynamic Sporting Solutions Nigeria Limited of receiving money meant for the AFN.