Bayelsa United cancels sponsorship deal amidst controversy
Just two days after the announcement of a new kit sponsorship deal, Bayelsa United, a team in the Nigeria Premier Football League, has cancelled the agreement with Halkins Exploration and Production Limited.
The Bayelsa State government directed the club to terminate the deal, citing ongoing legal issues between the company and the government.
Initially, Bayelsa United had reached an agreement with Halkins Exploration and Production Limited to feature their logo on the team’s jerseys and other kits.
However, the state government, in a release on Wednesday, December 13, 2023, stated that it neither approved nor endorsed the sponsorship deal for the ongoing football season. They deemed the reports surrounding the kitting deal as mischievous and clarified that Governor Douye Diri was not aware of any such arrangement.
Halkin Exploration and Production Limited had been embroiled in controversy related to the alleged acquisition of Oil Mining Lease 46 (OML 46), also known as the Atala Oilfield, which belongs to the Bayelsa State government. Governor Diri opposed the revocation of the OML 46 license by the Department of Petroleum Resources in April 2020, considering the oilfield a “prized asset of the state.”
The governor, a strong advocate of private sector investment in sports, emphasized that while his administration supports such investments, due diligence and due process must be observed. Governor Diri has ordered a halt to the sponsorship deal pending a thorough investigation into the matter. The Commissioner for Youth and Sports Development, Daniel Igali, and Bayelsa United chairman, Ebiki Timitimi, have been directed to suspend the process until the investigation is completed.
Preliminary findings revealed that the necessary approvals and due diligence were overlooked in the sponsorship deal. The government cautioned its boards, agencies, and parastatals against unilateral actions on matters involving the state to avoid unfavorable consequences.
The cancellation underscores the importance of transparency and adherence to regulatory processes in sports sponsorship deals, especially when they involve state-owned entities.
Bayelsa United FC will be back in action for a rescheduled NPFL clash vs Rivers United FC at the Adokiye Amiesimaka Stadium on Thursday.
