FAM to terminate contract with Puma

FAM is planning to end its contract with sportswear manufacturer Puma claiming that the deal is not lucrative as they initially anticipated.

Football Association of Malawi (FAM) president Walter Nyamilandu on Wednesday confirmed that the executive board has agreed to renegotiate the five-year deal they signed two years ago or terminate the contract.

“The contract we have with Puma is a raw deal and it was agreed that if there is a chance, then we will negotiate for a review, if not, then we would rather walk out,” said Nyamilandu.

He dismissed fears that termination of the deal with the giant sportswear manufacturer would lead to serious repercussions.

“There will be no consequences as long as we give them notice as stipulated in the contract,” said Nyamilandu.

The FAM president said the decision was arrived at after establishing that it has been difficult to raise capital to enable the association to order a second consignment.

“We overestimated the market when we made the initial order because the quantities that were discussed, were not realistic. However, for now, we are still contracted to Puma until we renegotiate or walk out,” he said.

Nyamilandu said as a result of their failure to order another consignment, Puma has not supplied free equipment to the national team for the past two years.

Nyamilandu also said in the event that they successfully negotiate for a mutual termination, they will consider other options.

“We’ll consider going into partnership with a firm that should be able to offer us tailor-made replica jerseys. Puma were flexible, only that the business wasn’t lucrative,” he said.

At bedtime, Puma had not yet responded to our questionnaire.

In a related development, FAM has threatened to institute legal proceedings against those that have not issued payments from the sale of the replica jerseys.

At its recent emergency indaba, FAM executive board is reported to have expressed disappointment with the way the initial sale of replicas was conducted.

Nyamilandu said as of last month, the association’s marketing department had not collected K10 million (about $25 000) from the sales.

“During the previous meeting, the executive board was not amused at the way the replicas were sold and it was agreed to intensify debt collection from those that ordered consignments of the jerseys and the remaining items should be withdrawn.

“And during the recent emergency meeting, it was noted that there was tremendous progress in terms of debt collection and half the amount [about K5 million] has since been collected,” said Nyamilandu.

The FAM president also disclosed that warning letters have been issued to those that have not honoured payment.

“We have given them considerable grace period to honour the payment, failing which we shall institute legal proceedings in a bid to recover the money,” he said.

He further said there is a misconception among certain quarters that FAM is there to give out free items.

“For instance, during the launch of the replica jerseys, bids and pledges were made, sadly though, most of them have not been honoured.”