Dynamos Football Club reportedly lost $36 000 to a local sportswear supplier following a botched deal to provide and sell promotional merchandise for the club’s golden Jubilee celebrations set for next year.
A local company, S Chiware Sports Consultancy and Associates, has since threatened legal action against Betta Balls for contractual breaches.
The two entered into an agreement where S Chiware engaged Betta Balls Sports as a strategic and technical partner in the Dynamos’ golden jubilee countdown promotion.
According to the contract, a copy which is in NewsDay Sport’s possession, the two parties signed an agreement on May 24 last year where S Chiware was entitled to 40% from the net profit share while Betta Ball would get 60%.
The contract further stipulated that Chiware would then transfer a third from their entitled share and remit the same percentage to Dynamos as per the endorsement between the consultancy and the Harare giants.
However, S Chiware alleges that Betta Balls has failed to honour the agreement and has since engaged their legal team to recover their dues which they claim to be in excess of $100 000.
In a letter dated June 6, the lawyers wrote to Betta Balls managing director Maureen Nyemba demanding that her company make the payment within seven days.
“On the 24th of May 2011 you entered into a Dynamos Football Club Golden Jubilee Countdown promotional merchandise partnership with our client.
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In terms of the promotional merchandise partnership you were required after the acquisition and sale of regalia to recover from the gross all agreed overhead expenses incurred by both parties, share net profit at the rate of 40% and 60% respectively and to meet once in a fortnight to discuss the promotion and the partnership agreement.”
The letter further states: “The following items were purchased in China by yours and our client thus adults (2 000), and children jerseys (500), bandanas (2 000), festival hats (1 000), phone pouch (2 000), table feather (200), baseball cap (1 000), non-wool woven bag (2 500), Dynamos posters (1 000), white shorts (30) and blue shorts (30).
“Our client firmly believes the above were sold out and you, without client’s knowledge and consent went again to China to purchase a similar order. Client also understands that an estimated profit of around US$100 000 was realised between October 1 2011 to June 1 2012.
“With the foregoing we have instructions to demand as we hereby do as per partnership agreement 40% net profit share from the proceeds sold as of October 1 2011 to June 1 2012 which according to client estimated amounts of US$36 000 within seven days from receipt of this letter, failure which we have firm and specific instructions to proceed in terms of clause 21 and 23 of the partnership agreement to safeguard our client’s interest and to claim legal cost against yourself,” reads the letter signed by the lawyers and copied to Dynamos.
When NewsDay Sport contacted Nyemba’s office for comment, she was said to be out of the country on business.
But, her personal assistant, who refused to reveal her name, said she had not received the letter of demand from Chiware’s lawyers.
The rift between Betta Balls and S Chiware started when the former donated part of the consignment to Dynamos to use as their official kit for the ongoing season, claiming in media exposures that they were the ones running the golden jubilee countdown promotion.
Dynamos were forced to surrender back the “donation” by their principal sponsor BancABC who said it was in violation of their sponsorship agreement. S Chiware claims that Betta Balls, however, continued to sell the regalia in their shops and at Dynamos matches.
“Not only did this conduct by Betta Ball Sports violate the terms and conditions of the merchandising contract agreement with S Chiware, it violated the S Chiware Sports Intellectual property rights and origination content of the promotion, bringing much confusion to prospective partners and the whole countdown promotion,” said Chiware.
S Chiware further alleges that Betta Balls’ behaviour has resulted in the uncertainty of the golden jubilee countdown promotion and also a possible cancellation of the promotion by Dynamos for non-remittal of royalty fees.
