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Thread: Glo Deal In Trouble : Clubs Suffer Deficit

  1. #1
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    Default Glo Deal In Trouble : Clubs Suffer Deficit

    The financial woes of clubs taking part in the Premier League appear to be deepening as the support from the competition’s title sponsor, Globacom, seems to have hit a snag.

    The Nigerian international telecommunications giant, operating under the name Glo, is yet to honour its financial obligations to Ghana’s Premier League, and Graphic Sports investigations have revealed the company currently owes the Ghana Football Association (GFA) an amount of about $3million covering the the second tranch of last season’s package and the first part for this season.

    By the agreement in the three-year sponsorship deal signed three seasons ago, Glo was to pay an amount of $3million a year for three years.

    The first half was to be paid before the commencement of the season and the second part midway through the season.

    While there was no problem with regard to the payment in the first season of the agreement, the second season suffered as the sponsor did not keep to the agreed payment schedule.

    As of now, the second tranch for last season has not been paid and an August 10 deadline agreement reached between the GFA and Glo for the settlement of that money has not been honoured.

    More threatening, there is no word of when the $1.5million being the first part for this season will be paid as the clubs are at their wits’ end over how to raise monies and prepare adequately for the season which kicks off on September 5.

    That is not all, Glo is also yet to honour its obligations to the senior national team, the Black Stars.

    The source further tells the Graphic Sports that the company, with its headquarters in Nigeria, is asking for time to pay up, a development that is putting both the Premier clubs and the GFA on the edge.

    While officials of the GFA and PLB would not comment on the issue when contacted, sources close to the GFA said the football governing body was not amused about the latest development, fearing an aggressive reaction from the clubs.

    The source said the GFA and the Glo hierachy had had several discussions since the last season ended over the payment of the monies, with the payment schedule changing from time to time, with the final date set for August 10.

    “However, now that that agreement has also not been honoured, it is up to the GFA to take a decision on what to do, but to tell the truth, it will come under intense pressure from the clubs, no doubt,” the source told the Graphic Sports.

    The source further told this paper that the company’s relunctance to keep to the payment schedule stems from the fact that it is frustrated by its inability to start operations in Ghana.

    Even though it is yet to start operations in Ghana, Glo has its plate full with several sponsorship deals in Ghana from sponsorsing showbiz icons as well but the most notable being the Premier League as well as the Black Stars.

    Somewhere last May, there were media reports that Glo had threatened to abadon its plan to operate in Ghana due to the frustrations it was encountering in setting up.

    Ironically, the problem of non-payment is not peculiar to Ghana as media reports in Nigeria also indicate that a meeting of the executive committee of the Nigeria Premier League (NPL) is expected to take a decision next week on their relationship with Glo.

    The NPL, according to the reports, will decide on new title sponsorship for the League after contract renewal talks with Glo broke down in Lagos.

    Glo’s four-year deal with the NPL elapsed at the end of the current season and NPL sources say the company, which had the right of first refusal, failed to exercise those rights despite written reminders.

    A meeting in Lagos on Tuesday failed to resolve pending issues, including outstanding sponsorship fee of over N900-million due to the League.
    Beware lest you lose the substance by grasping at the shadow. ~Aesop

    Ignorance can be educated,drunkenness sobered,craziness medicated but there is no cure for STUPIDITY


  2. #2

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    May be if the clubs repackage themselves the league will be more attractive to fans and sponsors alike.

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