GLOBACOM PARTIAL BLACKOUT

After several weeks of exchange of hot words over sponsorship fee for the national teams, the Nigerian football Federation decided to part ways with communication giants Globacom.  The decision to terminate the contract which began in 2004 was taken after Globacom’s alleged refusal to jerk up the sponsorship fee from N150m. According to Idris Adama, […]

After several weeks of exchange of hot words over sponsorship fee for the national teams, the Nigerian football Federation decided to part ways with communication giants Globacom.

 The decision to terminate the contract which began in 2004 was taken after Globacom’s alleged refusal to jerk up the sponsorship fee from N150m.

According to Idris Adama, NFF’s Head of Marketing, the Globacom valuation of the property fell far short of what the NFF value is.

“They had a right for first refusal in the contract, and we offered the property to them at N1 billion. They came back to us with N165 million, that is a 10 percent increase on the former contract,”

The NFF rejected the offer out of hand, and on Tuesday, they sent a letter of appreciation to Globacom thanking the company for its meritorious service to Nigeria football within its short span of existence.

The decision by NFF to part ways Globacom did not illicit serious concerns but the same can not be said of what has become of the relationship between the Nigerian Premier League and Globacom.

As if embarking on transfer of aggression, Globacom has finally indicated its readiness to dump the premier league as well. It is interesting to note that the same Nigerian company has signed up to bankroll the league in Ghana.

The company cited ‘lack of value on their investment’ but the NPL is insisting that Globacom have not followed the ouster clauses as stipulated in the contract.

Glo’s current contract, which kicked in during the 2006 football season at a total cost, including value in kind, of N787,350 000, has now risen to N1,016,733 for the current season.

Out of that sum, N922,383 000 is due in cash but the NPL claim that they are yet to receive a kobo, nearly six months since the payment was due.

What really triggered off the complete break down of negotiations was the move by Globacom to pro rata the cost of the league so far and pay NPL a paltry N250m out of the N922m due for the season.

This offer was instantly rejected by the leadership of the NPL as according to the NPL Executive Secretary, Mallam Allhassan Yakmut “there is a clear procedure stated in the contract for withdrawal and they have not followed that process.

Yakmut also added that Glo has been in breach of the contract since the start of the season, failing to pay up their sponsorship fee till date.

“In any case, they have been in breach of the contract since June. The contract states that the fee must be paid two months before the start of the season. It is now December, and they have still not paid.”

On their part, Glo have argued that the NPL have failed to provide the leverage commensurate with the huge investment they have poured into the league.

What has become a source of grievous concern to observers is the excruciating impact of Globacom’s intention on the NPL and Premier League clubs. As if all eggs were carried in one basket, already the league is almost in comatose because the clubs are cash strapped so much that they are finding it hard to honour matches.

Elsewhere, apart from the main sponsors, league bodies bring on board other auxiliary sponsors who give financial support and sundry incentives. The same can not be said of the NPL which has over the years depended on the sponsorship money from Globacom. Now that the bubble is about to bust, there is panic everywhere.

The worst hit are the clubs which are in serious distress. This shows clearly that all the 20 premier clubs over depend on the paltry sum of N10 m which NPL hands out to them as their share of the sponsorship fee. It is now clear why such clubs which depend on the stipends owe their players and officials sign on fees, salaries and other allowances.

Some club officials who spoke on the ‘unfortunate’ development have lamented the plan by the league sponsors, Globacom from further sponsoring the Nigerian Premier League.

Commenting on the planned sponsorship withdrawal by Globacom, Kano Pillars Chairman Tukur Babangida said it will be a fatal blow if Globacom is allowed to pull out of the league.

He added that most football clubs in the elite category have been surviving on the Globacom’s annual grant to clubs, as the meagre resources allocated to the clubs from their owners hardly take them anywhere.

“We are not happy that Globacom wants to withdraw from sponsoring the league, the league has been growing steadily since they came in; even the way the Nigerian league is now rated in Africa is simply because of their contribution.

“The delay in releasing their annual allocation to NPL has been affecting us the clubs because it has assisted us greatly. The money released to my club last year was used to buy a bus and two cars and that was a great improvement for the club.

Speaking to Trustsports on the NPL and Globacom contract brouhaha, former secretary of Gabros International FC, Barrister Ikye Leo Igbokwe said the development has simply exposed the emptiness of the clubs.

He said all premier league clubs do not have well laid out structures to enable them survive emergencies like the one on ground.

Igbokwe maintained that state governments which own more than 70 percent of the clubs in the premier league waste tax payers’ money on such clubs without putting in place any viable structures.

“We quarrel with the state governments wasting tax payers’ money on such clubs without a good management to take charge of the clubs. They bring in politicians who know nothing about football administration. These clubs will die once Globacom pulls out of the league”.

The position of Barrister Igbokwe is shared by many others who believe the premier league in Nigerian is run haphazardly and the clubs which depend on government funding are perpetually at the mercy of government and the NPL.

Thus, Globacom has sneezed, the NPL and its entire premier clubs have caught a terrible cold that has exposed their vulnerability. In climes where football is better organized, the recent move by Globacom wouldn’t have generated so much ado.  Unfortunately, the story here is different and the possibility of the league grinding to a halt can not be ruled out.