German sportswear manufacturing giants PUMA has terminated its four-year contract with the Athletics Federation of Nigeria (AFN).
The termination of the deal comes amidst an alleged leadership tussle between the Ibrahim Gusau-led AFN board and that headed by the Minister for Youths and Sports, Sunday Dare.
Consequently, the minister is said to have vowed that the Nigerian Athletes will not wear the PUMA kits.
According to reports, the AFN under the leadership of Ibrahim Gusau had entered into a controversial $2.76m deal with Puma on July 24, 2019, in Doha.
The deal led to a major crisis that split the athletics body into two factions, with both Gusau and Adeleye accused of sidelining other members of the board during the signing of the deal.
The deal, signed by Gusau-led AFN was due to expire in 2022.
Part of the contract is that PUMA will supply apparel to all age categories to Nigeria’s Athletics team for four years at no cost.
In addition, gold medalists at the Olympic Games will earn $15,000, silver medalists will get 5,000 while a bronze medal will fetch athletes wearing the PUMA apparel at the games $3,000.
PUMA terminated the contract in a letter dated Wednesday, August 4, 2021, and signed by the company’s director Manuel Edlheimb.
In the letter of termination of Sponsoring and Licensing Agreement PUMA said, “we are referring to the licensing and sponsoring agreement signed between our company and your federation”.
“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.
“PUMA especially declares to be discharged from any or all obligations towards all stakeholders involved and reserves all rights against these entities and individuals,” the statement added.
Meanwhile, the Department of State Services had last year cleared Gusau and his vice president Sunday Adeleye over corruption allegations levelled against him by the sports ministry.