..spends over 70 million a year
Malawi Super League teams have been and are still struggling economically due to limited resources since they have no right to approach Tnm competitors for sponsorship, it has been claimed.
According to a report by the Competition and Fair Trading Commission (CFTC), the sponsorship agreement between Sulom and Tnm contained restrictive clauses which affect competition and is one of the major factors which is also contributing to Super League teams to be struggling.
The CFTC report highlighted that some Tnm Super League teams complained that they are struggling due to limited resources since they have no right to approach other sponsors who are Tnm business competitors.
“Football teams are struggling because of limited resources because they have no right to approach other sponsors,” reads part of the complaint submitted to CFTC. The report added that teams get 1 million and a set of jersey every year but each team spends more than 70 million per year for the day to day running of their affairs.”
“Teams get about 1 million kwacha and a set of jersey for a year while their expenditure are over 70 million kwacha per annual,” adds the report.
According to the report, Super League teams have been struggling financially because Tnm had all the rights which included controlling perimeter advertising, marketing involved in TV rights, and procuring of jerseys for the teams which is different with what happens in other countries.
“In other countries for instance in South Africa or CAF tournaments, the rights are clearly defined. This is not the case in Malawi where the main sponsor which Tnm has all the rights including naming marketing, is involved in TV rights, procures jerseys for the teams and controlling perimeter advertising,” reads the other part of the complaint in the report by CFTC.
In most sponsorship agreement, the title sponsor has their logo on the sleeve which enables teams to have other sponsors on the other part of the jersey.
Meanwhile, Tnm has suspended the 2017 league procurement process and the contract renewal negotiations with the Super League of Malawi (SULOM).
The 2017 season was scheduled to kick off on 8th April but with Tnm suspending its funding, Sulom has no choice but to shift the kickoff date to a later date.
According to information at hand, the Football Association of Malawi (FAM) is set to engage both parties into talks this week.