Telecommunications giants, MTN have suspended all financial obligations to Asante Kotoko with immediate effect.
FootballMadeInGhana understands that there is a clause in their sponsorship agreement that allows a suspension of the obligations in the event of a force majeure- in this case, the COVID-19 pandemic.
All Football activities in the country has been halted indefinitely due to the outbreak of the deadly virus which has so far infected over 2.5M people worldwide, killing over 183,424.
Speaking in an interview with Luv FM, Kotoko General Manager, Yves Nana Gyambibi Coker confirmed the latest development.
“It is stated categorically in the contract with MTN that any time there is closure led by a force majeure it means the contract can either be terminated or suspended. There is a letter from MTN to Asante Kotoko claiming they are suspended all their financial obligations to the club, this is in conformity of a clause in the contract that allows them to do so”
Coker lamented the situation and explained what it means for the club’s financial standing.
“There will be serious difficulties in terms of the club’s financial situation. Coupled with the absence of football, Kotoko is not making any revenue which will make it difficult for club to fulfill its financial obligations to whoever the club is in contract with. This and many other reasons are why we have been engaging employees of the club especially the playing body to accept pay cuts so that the club can be taken care of and sustained in this hard times”