Puma terminates billion Naira kit deal with AFN after Federal Government’s rejection

Sportswear giant Puma has terminated its contract with the Athletics Federation of Nigeria (AFN) after the Federal Government of Nigeria rejected it. 

Puma had in July 2019 entered a four-year deal with AFN worth over a billion Naira ($2.76m), which brought lots of bickering that divided the federation into two factions. 

Former president of the AFN Ibrahim Gusau entered the deal with Puma at Doha during the 2019 World Championships. 

But without the backing of the Federal Government through the Minister of Sports Sunday Dare, Nigeria did not honour the contract. 

Instead, Dare and his backed AFN president Tony Okowa signed a deal with Nigerian sports brand Afa Sports for the Tokyo Olympics. 

Not pleased with the development, Puma, in a statement signed by the company’s director Manuel Edlheimb announced the termination of the deal. 

“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,” part of the statement read. 

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

Puma, in their contract, had agreed to pay N6m ($15,000) to Nigerian Gold medalists, N2m to silver medalists and N1.2m ($3000) to bronze medal winners. 

The Puma deal has been controversial in the AFN, with money reportedly paid to a private account connected to Gusau. 

Sports Minister Dare petitioned the Department of State Security (DSS) to investigate Gusau who was cleared of all wrongdoings.