Some chairmen of Nigeria Premier Football League (NPFL) clubs are seeking clarification on the distribution of sponsorship proceeds after receiving N15 million each from the league's commercial partnership. The chairmen expressed concerns that the payment fell short of their expectations, citing an arrangement where 60 per cent of sponsorship proceeds would go to the clubs, while 40 per cent would cover logistics and other expenses. They expect each club to receive at least N150 million for the season.
The NPFL management and the NPFL Club Owners Forum are set to meet in Abuja to discuss the concerns. A letter dated 28 October, confirmed the meeting would hold at 7p.m. at Top Rank Galaxy Hotel, Jabi Utako, in Abuja. The meeting comes after club representatives raised concerns about sponsorship receipts and payments at an earlier consultative meeting involving the NPFL management, GTI Asset Management and Trust Limited, the league's strategic partner.
According to a chairman who spoke on condition of anonymity, the sponsorship agreement provided for 60 per cent of the proceeds to be shared among the clubs, with the remaining 40 per cent reserved for logistics and other expenses. He questioned why the clubs had received only N15 million each despite the sponsorship deal announced by the league. The chairman argued that the amount received so far did not reflect what the clubs expected under the arrangement.
The NPFL announced a three-year title sponsorship agreement with EuroMatch in August, valued at $7.5 million, equivalent to $2.5 million per season. At the unveiling on 26 August, the league's chairman, Gbenga Elegbeleye, said 60 per cent of the sponsorship proceeds would go directly to the 20 participating clubs. The agreement was presented as a means of improving the clubs' finances and players' welfare, including their ability to pay wages.
However, the total value of a multi-year sponsorship agreement is not necessarily the amount immediately available for distribution. The amount received by the league or its partners at a given time, and the schedule for subsequent payments, are relevant to how much can be disbursed. The precise amount received under the deal to date, the detailed calculation of the clubs' 60 per cent share and the schedule for further payments were not established.
Beyond the sponsorship dispute, the chairman criticised the league's handling of fixtures, saying the scheduling of matches did not always take account of the logistical challenges faced by clubs. He said teams were expected to comply with dates fixed by the league even when travelling conditions or other circumstances made it difficult to arrive on time. He called for better organisation and greater consideration of the challenges faced by clubs participating in the competition.
The meeting is expected to provide an opportunity for club owners to seek clarification on sponsorship receipts, the N15 million allocation and the timing and basis of subsequent payments. Key points to be discussed include the calculation of the N15 million payment, the basis for the sharing arrangement, and the schedule for further disbursements. The outcome of the meeting may determine the future of the sponsorship deal and the financial stability of the NPFL clubs.
Key points
- NPFL clubs expect at least N150 million each for the season
- The league's sponsorship agreement with EuroMatch is valued at $7.5 million
- Club owners seek greater transparency in sponsorship receipts and payments
