US-based sports wear firm Nsejjere Casual & Sports Wear has started legal action against Mighty Wanderers for breach of contract after the latter pulled out of a sports wear deal, Nation Online can reveal.
The firm is seeking $1 400 000 (K380 000 000) in retribution.
“First and foremost, we will not rest until the absolute minimum annual retribution to Nsejjere Sports is met by the club. In this case, the clubâ€™s binding obligation is 20 000 shirts annually ($200 000 annually plus adjustments for inflation) over the term of the contract. In other words, a total of $1 400 000 over seven years contract plus opportunity cost,” reads a communiquÃ© from Nsejjere to Wanderers.
Nsejjere country director Jacob Chikoya confirmed the development in an interview on Monday.
“Our lawyers have started the legal process after exhausting all channels to convince Wanderers on the need to honour contractual obligations,” said Chikoya.
Wanderers pulled out of the deal sighting breach of contract by Nsejjere for engaging third parties in the selling of sports merchandise.
“We gave them enough time, up until June 22, to reconsider their decision, but they have failed to see reason,” said Chikoya.
Wanderers general secretary David Kanyenda said they will counter the lawsuit.
“It is them who breached the contract in the first place. In the contract, there was nothing about engaging a third party in the selling of the sports merchandise. We will definitely counter sue,” said Kanyenda.
Wanderers have also written Nsejjere that they do not admit the existence of the alleged exclusive supplier agreement.
“Further, it appears the agreement was executed, if at all with an entity called MTL Wanderers Football Club and not (Wanderers Football Club), which is no longer a going concern to the best of our knowledge,” reads the letter signed by Kanyenda and addressed to Nsejjere managing director Isaac Nsejjere.
Section 6 of the contract states: “Wanderers hereby agrees that it will not directly or indirectly, for or on behalf of itself or any third party, at any time during the term of the agreement and during the restricted period of twenty-five (25) years solicit any customers of the company or affiliate thereof (including those procured directly or indirectly by the contract) in a manner which directly or indirectly competes with the company).