The decision of the Confederation of African Football (CAF) to cancel its $1 billion television and marketing rights contract with French sports agency Lagardere Sports has been enmeshed in more controversies following different court judgments that questions the contract. Different court rulings on the issue highlighted that the contract itself should not have been signed as it went against existing laws and regulations.
Lagarde Sports declared the action of the Confederation of African Football’s (CAF) as “unlawful, unreasonable and unjustified” insisting that it would take the matter to the highest arbiter to ensure justice is done. The company noted that it has existing agreement with CAF which runs from 2017 to 2028 pointing out that while it is open to changes in the terms of the deal but will not leave any stone unturned in seeking for compensation in cash if all overtures fail to arrive at an amicable solution. CAF however maintains that it had no choice but to cancel the deal after two court judgments went against it.
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A Cairo court ruled last November that the agreement breached “Egyptian competition rules because Lagardere was appointed as CAF’s exclusive agent for marketing and media rights for an uninterrupted 20-year period without any open tender,” CAF said in a statement. The court fined CAF 100 million Egyptian pounds ($6.2 million).
The Competition Commission of the Common Market for Eastern and Southern Africa (CCC) had also found in 2017 that the agreement infringed competition regulations.
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“Given the above developments, CAF had no choice but to terminate the agreement,” it said. “Termination of the agreement is the legal consequence of the judgments of Egyptian courts and the recommendations and imminent decision of the CCC,” CAF said.
Arnaud Lagardere, managing partner at the French firm, said it would fight CAF’s move, accepting changes if necessary – or seeking cash compensation for the lost business. “We have here a very, very strong case and we’ll do whatever it takes either to maintain the contract, deal with more changes or get a significant amount of cash,” he was quoted as saying noting that “it is unfair and even if I know that no one should be too candid or naïve in this business, I think we don’t deserve such a treatment.”
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Lagardere Sports did not directly address the court or the CCC’s view that its agreement breached competition regulations. Lagardere has been involved in television production of CAF events for almost two decades. Broadcasters said planned coverage of next week’s Africa Cup of Nations qualifiers, which Lagardere was responsible for, had been cancelled. Such cancellations have occurred previously, although usually for logistical reasons.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.