Salima Sugar Limited says it will not renew its K60 million annual sponsorship with TNM Super League outfit Mighty Mukuru Wanderers which expired on March 22.
However, the Nomads have accused the sugar manufacturer of breach of contract, saying that the deal was already reactivated.
A letter from Salima Sugar Limited dated June 15 signed by company secretary Charles Thupi says it had made a “business decision” to pull out.
The letter reads in part: “I wish to advise that following the expiry of the contract on March 31 2022 and the draft contract for renewal, management has made a business decision not to renew the contract.”
The decision came barely hours after Mukuru and Wanderers unveiled a K175 million sponsorship at Mpira Stadium in Chiwembe Township, Blantyre.
But Wanderers board secretary Humphrey Mvula said in an interview yesterday that Salima Sugar already renewed the contract in March.
He said: “It is not a question of not renewing the contract. After the expiry of the contract in March, we jointly confirmed that the contract has been renewed.
“They maintained the sum of K60 million and promised additional package such as technical equipment and uniforms. Actually, they already started fulfilling some of these obligations.
“That’s why we were still using the uniform which they bought for us. Just last week we were discussing how they will brand Wanderers Reserve. So, to say they have decided not to renew the contract is not the true because the contract was already renewed.”
Mvula said the sponsorship withdrawal was a shock to the Nomads who had respected the contractual agreement with the sugar company.
He said: “We made it clear that their sponsorship is not enough and that we were looking for co-sponsors.
“Our agreement was that we can’t engage another sugar manufacturing company.”
Soccer analyst Kelvin Moyo said he suspected that the issue of brand visibility could have played a role in Salima Sugar Limited’s decision to pull out.
He said: “But they [Salima Sugar] could have just asked for more visibility.”
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