FDH Bank plc says they will not tie the country’s elite football league sponsorship deal with Super League of Malawi (Sulom) to exclusivity clauses, as other companies are free to sponsor or advertise within the league.
The bank’s managing director Noel Mkulichi disclosed this when asked how flexible they are to working with competing companies in the FDH Bank Premiership after taking over from previous sponsors TNM plc.
| Bobby Kabango
“We have allowed Sulom to get additional sponsorship from other companies and we are flexible to working with them in developing football in the country,” he said.
This is different from Sulom’s previous deal with TNM plc, which included exclusivity clauses in its 19-year contractual agreements with Sulom.
The clauses blocked competing companies from sponsoring or advertising within the league and the clubs.
In 2017, the mobile network provider withdrew sponsorship after Competitions and Fair Trading Commission (CFTC) ruled that the clauses were bad for football development.
CFTC argued that the contract was a departure from international best practices.
The commission gave an example of English Premiership and South Africa top league, where competitors co-exist in the same league whether through sponsorship of a specific component or through team sponsorship.
However, TNM was unmoved as they only resumed sponsorship after the clauses were maintained, citing exclusivity as a critical factor for their commercial value.
The clauses that CFTC deemed to be too restrictive included Clause 10.1 of the deal, which stated that no other person, firm, company, corporation or other body involved or concerned in the operation, sale or distribution of products and services related or similar to TNM’ products and services, shall be allowed to sponsor, promote, advertise or have similar rights associated with the sponsorship.
Clause10.2, prevented and discouraged fans, club members, attendees and spectators at all league matches from displaying banners, placards, or other materials bearing the trademark, name or identifier of competitors of TNM.
Clause 10.3 ensured that, where matches were held in a stadium or arena where the advertising and promotional materials of competitors were on display, such material were supposed to be covered and/or concealed for the entire duration of the match.
Lastly, clause 10.5 stipulated that no competitor products such as airtime of other competitor products are sold at match venues. Any person vending wares in and around the stadia were prohibited from wearing competitor bibs, T-shirts or any advertising apparel.
Sulom president Gilbert Mittawa said they are happy that FDH Bank plc is flexible to work with other companies because this will help the league maximise its revenue base for football growth.
