Puma terminates $2.67m deal with Nigeria amid embezzlement scandal

German sportswear manufacturing giant, Puma has terminated its four-year contract with the Athletics Federation of Nigeria (AFN).

The cancellation comes after the AFN under its former President 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 former technical director of AFN Sunday Adeleye accused of refusing to disclose the contractual agreement they signed with Puma on behalf of the Athletics Federation.

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.

It read in part; “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.

“We are referring to the Sponsoring & Licensing Agreement (the “Agreement”) signed between our Company and your Federation.

“PUMA especially declares to be discharged from any or all obligations towards all stakeholders involved and reserves all rights against these entities and individuals”.

Before the commencement of Tokyo Olympics, Minister of youth and sports development, Sunday Dare had said athletes will not use Puma kits at the Olympics as the ministry is not privy to the contract with Puma.