FAM misses fortune in Puma deal
The Football Association of Malawi (FAM) has not benefited from the Puma sports merchandise deal they entered in 2011.
Meanwhile, the association’s marketing department is today expected to explain to the executive committee how the deal failed so as to map the way forward.
In an interview on Thursday, FAM general secretary Suzgo Nyirenda could not reveal the actual figure, saying the information will be available to the public only after the executive committee has been briefed on the same.
But inside sources have said the amount lost is in excess of K45 million (about $112 500).
The association ordered 10 800 units of merchandise from Puma in 2010, but the consignment arrived in 2011 and FAM had to cough K30 million (about $75 000) to redeem the items from the Malawi Revenue Authority (MRA).
Due to poor sales, because most people could not afford K9 000 (about $22) per jersey, half the merchandise had to be sold at K5 000 (about $12.50), a development which was further compounded by the devaluation of the kwacha.
Slashing of the price was done for FAM to recover what they had invested in the deal.
FAM had invested K66 million into the deal—direct investment of K36 million and a further K30 million which was sourced to pay MRA for the consignment.
“We have managed to recover the money we invested, but we have failed to make the profit we envisaged,” said another source within FAM.
Former FAM general secretary Charles Nyirenda said if the consignment had arrived in 2010, sales would have been better and FAM would have made a fortune.
“The team had made it to Angola for the first time in three decades and everyone was excited to be associated with the Flames. But the consignment arrived late and at a time the team was not performing well,” said Nyirenda.
The poor sales impacted negatively on the Puma deal leading to the Flames being stuck with the same V-speed jersey for three years while other countries such as Ivory Coast, Angola, Namibia, Mozambique and Togo have been wearing different and improved Puma designs every year.
FAM president Walter Nyamilandu lamented the development.
“The agreement was that we would get new sponsorship items with improved designs only if we finished the first consignment. We experienced difficulties in sales and it has been complicated for us to order new consignments,” said Nyamilandu.
“We are going to table the issue on whether to cut ties with Puma. It is up to the executive to decide on the way forward. But the Puma deal has not benefited us,” he said.
