NPFL clubs demand answers over N15m sponsorship payout

Some club chairmen in the Nigeria Premier Football League (NPFL) are demanding clarification over the distribution of sponsorship proceeds after receiving N15 million each from the league’s commercial partnership, PREMIUM TIMES has learnt.

In an exclusive interview with PREMIUM TIMES, one of the chairmen, who spoke on the condition of anonymity, said the payment fell short of what the clubs expected under an arrangement in which 60 per cent of sponsorship proceeds would go to the clubs, while 40 per cent would cover logistics and other expenses.

He said each club should receive at least N150 million for the season, based on the sharing arrangement, and that the chairmen wanted the league management to explain how the payments were calculated.

The concerns are expected to feature at a consultative meeting scheduled for Wednesday evening in Abuja between the NPFL management and the NPFL Club Owners Forum.

In a letter dated 28 October and addressed to the chairman of the club owners’ forum, the NPFL management confirmed that the meeting would hold at 7p.m. at Top Rank Galaxy Hotel, Jabi Utako, in Abuja.

The letter followed correspondence indicating that members of the club owners’ association intended to attend the engagement. It added that, as the league was not prepared to host an emergency congress, the club owners would bear their individual logistics costs.

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.

‘We expected at least N150m per club’

The chairman told PREMIUM TIMES that 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.

“From the partnership of $2.5 million, the agreement was 60 per cent would go to the clubs, while 40 per cent would go for logistics and everything,” he said.

He argued that the amount received so far did not reflect what the clubs expected under the arrangement.

The chairman said the clubs had previously received about N50 million per season under earlier arrangements, making the latest payment particularly disappointing to him.

He maintained that, based on the 60 per cent allocation to the clubs, each team should receive at least N150 million for the season. However, that figure represents his assessment of what the clubs should receive, rather than an independently verified amount stipulated in the sponsorship contract.

He also questioned how club owners had been represented in previous discussions, saying all chairmen should be involved in decisions affecting their financial interests.

Rather than relying on a few representatives, he said, the chairmen wanted to meet with the league management to seek clarification on the money received, the basis for the N15 million payment and the timing of subsequent disbursements.

The chairman said the clubs were expecting another tranche in November but wanted clearer information about the payment schedule and the amounts due to them.

Transparency concerns

The dispute follows a sponsorship consultative meeting held on 19 September involving representatives of the NPFL management, GTI and the club owners’ forum.

According to the report of that meeting circulated to club owners, GTI representative Nelson Ineh told participants that the company had received about $1 million from EuroMatch in connection with the league’s sponsorship.

The meeting resolved that each of the 20 participating clubs would receive N15 million from the sponsorship proceeds available at the time. It also called for greater transparency and communication about sponsorship receipts, payments to clubs and subsequent disbursements.

The report said the participants agreed that the NPFL management, GTI and club owners should continue working towards a sustainable financial framework for the league and its clubs.

The N15 million payment was therefore part of an earlier resolution on the distribution of available proceeds. However, the chairman who spoke to PREMIUM TIMES said some owners remained dissatisfied and wanted the league management to explain how the amount related to the broader revenue-sharing 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 in the information available to PREMIUM TIMES before publication.

More Questions

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.

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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 cited an occasion when his team travelled for two days from Niger State to Katsina State but was still expected to play upon arrival.

The chairman argued that the league should consider clubs’ circumstances when deciding whether matches need to be rescheduled.

“If they can schedule our matches, so we feel if we have a reason for delaying a match, they should also consider us,” he said.

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.