FAM declared both MBC, Mibawa successful TV bidders

Football Association of Malawi (FAM) declared both Malawi Broadcasting Corporation (MBC)  and Mibawa Studios successful bidders as host/content producers for Mpira Television.

Documents which we have seen indicate that FAM informed the two broadcasters on March 10.

However, FAM awarded Mibawa Studios the deal, prompting  the public broadcaster seek a court injunction stopping the association from awarding to Mibawa Studios host content producer contract.

It has emerged that the disagreements between the three parties are on where the final control centre (FCC) should be, sharing of revenue and allocation of which matches MBC and Mibawa would produce.

 The letter from FAM to MBC reads in part: “Reference is made to your submission of expression of Interest to host football content producer as advertised by FAM.

“Following the technical evaluation of your submission by FAM’s independent technical consultants and management meetings that followed, I write to notify you that your expression of interest for host content producers for FAM’s Pay TV Channel was successful.”

The letter further informed MBC that the hosts content production role will be shared by two entities.

FAM further wrote MBC on March 30 detailing the terms of engagement in which with the State broadcaster’s role was spelt out.

The letter reveals that the other content producer was Mibawa Studios and also explains how the two entities will share football production role.

Mibawa was assigned to produce matches in  the Southern Region while MBC was assigned the Central and Northern regions.

FAM also explained that Mibawa will host the final control centre at its Blantyre studios.

On revenue sharing, FAM stated that content producers would not be paid any amount and that instead, both Mibawa and MBC would be direct beneficiaries of all revenue generated from Mpira TV channel.

The revenue was to be shared proportionally with other stakeholders—five percent to host broadcaster, 35 percent shared 50/50 to each host content producer (MBC and Mibawa) or else sharing based on how much each had contributed.

The 60 precent balance was to be shared by football stakeholders with FAM and Super League of Malawi getting 10 percent each while clubs would share 80 percent.

However, MBC in its letter signed by the then acting director general Aidan Gumeni dated May 6 to FAM protested the introduction of Mibawa in the project.

It also protested the arrangement of Mibawa hosting the final control centre and producing matches in the Southern Region only.

Reads the letter from MBC in part: “Having received your offer dated 10 March 2021, but served through email dated 15 March, MBC noted content therein were not consistent with the tender that FAM advertised in October, 2020, upon which MBC’s expression of interest was issued; hence, requested an addendum spelling out MBC’s obligations to the project through our email dated 16th March 2021 given that a third party was being introduced contrary to dictates of the initial tender.”

“However, MBC still accepted the offer to be host content producer, but under conditions.

“Having observed as above, MBC hereby accepts your offer to be host/content producer subject to these terms that the decision to have only one party hosting the final control centre and other only contributing content from specific regions be reviewed.

“To that effect, MBC proposes that the hosts final control centre be hosted and manned at FAM and content producers be operating under similar terms, thus be responsible for collection and production of content for submission to FAM final control centre; that the idea of imposing  the Central Region and Northern Region to MBC because the other party prefers Southern Region be reviewed.”

Alternatively, MBC offered in its letter dated May 6, to hire out its service to FAM at a fee.

Reads the letter further: “In an event FAM is not in agreement to the above, and given the observations we have raised pertaining information sharing, project management and suspicious dealings in the project, MBC proposes to be offering similar services on a hire-out basis and not be party to the project under proposed terms and a reasonable rate card can be shared with FAM to that effect.”

When FAM and MBC failed to reach a compromise, the association went on to engage Mibawa as content producers and unveiled them two weeks ago, prompting MBC to obtain the injunction.

The High Court of Malawi varied the injunction a week later allowing Mibawa Studios to be the pay TV host/content producer  through Zuku TV pending furher discussions.

On Thursday, presiding High Court judge Dingiswayo Madise gave parties to the television broadcasting rights dispute seven days to discuss and find a way forward.