FKF’S BODY BLOW: Marketing firm claims compensation, but federation says they are not entitled to any

SAM NYAMWEYA

The future of Football Kenya Federation Premier League looks bleak following escalating differences with their marketing partners, MP & Silva.

The relationship between FKF and MP & Silva, which turned sour a few weeks ago, seems to have irretrievably collapsed, communication in our possession has confirmed.

A series of exchanges between the marketing firm and FKF portray parties who are apparently soldiering on with a contract that is no longer mutually beneficial to them and is heading to the precipice, amid thinly-veiled threats for legal action and claims of breach of contract.

Two weeks ago, the marketing firm wrote to FKF president Sam Nyamweya demanding renegotiation of the terms of the contract, claiming that the quality of FKF PL, being perceived by the football public as second-tier league, was wanting and that some free-to-air communication companies were not too keen to come on board.

 

OWNED UP

The FKF President, for the first time, has owned up to the fact that some clubs who were enlisted for the FKF Premier League, and on which the contract with MP & Silva was underpinned, are not participating in their league.

He does not reveal the name of the clubs. But speculation has been rife that MP & Silva agreed to the contract with FKF on the premise that KPL giants, including, Gor Mahia and AFC Leopards, would be included.

Recently, FKF has denied allegations that KPL clubs’ officials’ signatures were appended to a letter by FKF to the marketing firm, as ostensibly having agreed to join the FKF PL.

“On the matter of participating clubs, we are alive to the (sic) your legitimate concern that some of the clubs initially enlisted a not taking part in the FKF PL, but this is a result of the fact that the situation we ended up with was not ideal and we had to settle for scenario where all parties would be accommodated, as much as possibly, for posterity,” says FKF President Sam Nyamweya in a letter to Roberto Dalmiglio, the Chief Operating Officer, MP & Silva, dated May 22.

The company COO has written a letter to the FKF boss in which he not only wanted the terms of the contract renegotiated, but also demanded compensation from the federation arising from what he alleged was a breach of confidentiality clause in the contract, which he said, had caused irreparable damage to the MP & Silva and FKF deal.

“Please be advised that, while it is difficult to foresee at this stage the amount of loss MPS is going to suffer and the exact amount of damages MPS will be entitled to as a result of FKF’s material breach of non-disclosure obligation under the agreement (Breach of Contract), your breach of contract has irreparably affected MPS’ ability to negotiate broadcast licences with prospective licensees on terms and conditions (including without limitation financial terms) it would be able to negotiate should the breach of contract not had occurred,” wrote Olga Malmvist, Sol of MP & Silva Legal Department to Nyamweya on May 22.

“Indeed, as a result of your non-curable breach of contract, free market conditions are now impaired, given the broadcasters’ (inducted) awareness of both the price their competitors have paid, and the minimum guarantee payable by MPS under the agreement,” said the letter.

The letter goes on to cite the laws of England and Wales thus: “...the governing law of the agreement, damages alone might not be an adequate remedy for the breach of confidentiality provisions of an agreement. Therefore please be advised that, in addition to MPS’ right to claim damages, MPS reserves the right to claim equitable relief (including without limitation an order that FKF must account to MPS for the loss of profits as a result of the breach of contract.”

 

NO BREACH

When contacted shortly before travelling to Switzerland on Monday, FKF Vice President Robert Asembo denied knowledge of any intention to demand damages from MPS. “It’s not true. MP & Silva have no right to ask for damages. This can only be determined by a court of law. There is no breach on the part of FKF to warrant such a request. Talks between the two parties are ongoing and have not reached the level of asking for damages,” he told FeverPitch.

Nyamweya (pictured) denies that the quality of the league is wanting. “The view that the FKF Premier League matches, being broadcast by Azam, is of a lower quality is inaccurate and being advocated by naysayers as a comparative analysis of the statistics of the leagues reflect otherwise.

“If anything, Shabana FC recently beat Sony Sugar FC 2-0 in a friendly match, which holds testament to the fact that in terms of quality, the FKf PL is as competitive as the other league,” said the FKF supreme.

“Renegotiation notwithstanding, the correct legal position is that the contract is valid and as parties, we are still bound by the obligation thereto until any new agreement is annexed to the contract,” says Nyamweya.

“Football Kenya Federation expects MPS to continue sending money as per the contract until we finalise our renegotiation, added Nyamweya. 

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