PUMA terminates four year contract with AFN over breach of contract

German sporting goods manufacturing giant headquartered in Herzogenaurach, southern Germany, PUMA has terminated its four-year contract with the Athletics Federation of Nigeria.

The leaping-cat brand appeal logo of sportswear firm Puma is reported to have signed a licensing and sponsoring agreement with AFN leveraging on its net profit which more than doubled last year, reaching 135.8 million euros ($166.7 million).

“We are referring to the licensing and sponsoring agreement signed between our company and your federation,” PUMA ’s director Manuel Edlheimb said in a letter to AFN.

“As a direct consequence of the recent Athletics Federation of Nigeria 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.

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

PUMA said the termination is 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.

The sports goods manufacturing company emphatically declares to be discharged from any or all obligations towards all stakeholders involved.

The Athletics Federation of Nigeria under the leadership of 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 apparel 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.

According to AFN the Youth and sports ministry had vowed that Nigerian Athletics athletes to the Games will not wear PUMA because the deal was “a subject of a criminal investigation”.

“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,” AFN said in a statement.

But the issue bothering on criminal investigation had been resolved as the Department of State Services DSS on September 3, 2020 cleared the Ibrahim Gusau led board and its marketing firm, Dynamic Sporting Solutions Nigeria Limited of receiving money meant for the AFN.