End of FAM, MP & Silva partnership?
BITTER: Both parties mull legal battle over annual sponsorship
THE partnership was supposed to elevate the prestige of the M-League but after just one year, FAM’s RM1.26 billion deal over 15 years with international media rights firm, MP & Silva, is now heading towards collapse.
In an agreement signed in January last year with the FA of Malaysia (FAM) to become partners of the M-League, MP & Silva pledged a guaranteed annual sponsorship of RM70 million between 2016 and 2021, followed by RM85 million (2022-2024), RM92 million (20252027) and RM103 million (20282031).
The partnership saw the formation of the Football Malaysia Liability Limited Partnership (FMLLP) which now manages the league.
Late last year, MP & Silva handed over RM20 million to FAM as part of the agreement for the 2016 season.
The M-League also managed to generate RM21 million through sponsorship deals in the just-concluded season.
Under the deal, MP & Silva needed to top up another RM29 million to make up the RM70 million guaranteed sum for the 2016 season but despite several reminders from FAM and FMLLP, they failed to do so.
Both parties have forwarded the matter to their respective legal departments and it is learnt that FAM are demanding compensation, totaling RM420 million as the deal has a six-year lock-in period.
MP & Silva was initially prepared to cover the anticipated shortfalls in the opening seasons when they became partners of the M-League but Police lodged an objection against Darul Ta’zim striker eligibility on Oct 27 but withdrew it on the same day for unknown reasons.
and pay a fee to get the certification,” he said.
FAM said clubs with new owners cannot change the names of the teams unless they get the approval of the Sports Commissioner’s Office (SCO).
There were talks that FAM Cup club AirAsia All-Stars want to buy the international company has since changed their business strategy under new majority stakeholders from China.
MP & Silva had offered FAM a revised deal of RM53 million a season to the FMLLP board at a meeting in London in September, or as an alternative, a satellite broadcaster be the new partner of the M-League for RM58 million per season.
“The proposal from the satellite broadcaster was rejected immediately by the FMLLP board as MP & Silva could not provide comprehensive details on some aspects,” a source told Timesport yesterday.
“As for the revised offer from MP & Silva, FAM presented it to their executive committee in Kuala Lumpur and it was also rejected.
“The deal is set to end as lawyers representing both parties are preparing for the next course of action. MP & Silva will unlikely be part of the league next year.”
The source said the M-League will not be affected if MP & Silva decides to end the deal as other companies are interested to be partners.
over Premier League side DRBHicom, who are contemplating to withdraw from the competition.
“All clubs are registered with us. New owners cannot change the names of teams without going through the processes with the SCO and other relevant parties. But this practice is allowed,” Afandi added.