HAVING reviewed the pending cases as well as new complaints
by Players under contract with Clubs in the NPFL, the LMC wishes to make the following statement with regard to the indebtedness of Clubs to Players in the NPFL.
The LMC received complaints from players of several Clubs,
alleging that they were being owed salaries and other entitlements. Article B9.45 of the Framework and Rules of the NPFL states as follows:
The terms of a contract between a Club and a Player shall be strictly adhered to and where a club fails to pay remuneration or entitlements due to players for a period of more than sixty (60) days, such Club shall be liable to a deduction of a maximum of six (6) points and a further deduction of three (3) points for every further thirty (30) days for which the remuneration or entitlement remains unpaid.
Upon investigation, it was found that certain Clubs - against whom complaints had been received – had been indebted to players in breach of article B9.45 above. Consequently, summary jurisdiction notice (Form 16) was issued to the affected Clubs. The said notices required the Clubs to remedy the breach by paying in full all outstanding remuneration and entitlements for which players were being owed, upon the failure of which they would become liable to an initial deduction of six points as provided for in article B9.45.
Upon the failure to settle their indebtedness to players within the stipulated time, suspended sentences of six-point deduction were imposed on the following Clubs: El-Kanemi Warriors FC, Dolphins FC, FC Taraba, and Warri Wolves FC. The LMC has been engaged in dialogue with the management as well as the State sponsors of the affected Clubs and we are mindful of the cogent commitment we have received from the respective State Governments to the effect that the all outstanding payments will be made within the shortest possible time. These include the following letters of
commitment:
- Letter from the Chief of Staff, Government House
Administration, Office of the Executive Governor, Taraba
State, with reference: GHJ/COS/S/3 dated 25th September,
2015, signed by the Chief of Staff of the Government of
Taraba State;
- Letter from the Office of the Secretary to the State
Government, Borno State, with reference; MSA/ADM/S/41/V.II
dated 30th November, 2015 and signed by the Secretary to the
State Government;
- Letter from the Government of Rivers State of Nigeria,
Office of the Permanent Secretary Ministry of Sports, with
reference: MOS/C/345/T/18 dated November 10, 2015 and signed
by the Permanent Secretary, Ministry of Sports; and
- Letter from the Delta State Sports Commission, Governor’s
Office, with reference DSSC.266/15 dated November 2015 and
signed by the Director-General of the Delta State Sports
Commission.
To this end, although not all the affected Clubs have fully settled all outstanding debts owed players, it has been brought to our notice that partial payments have commenced and at present Warri Wolves FC have cheques being issued for the full payment of salaries up to the month of November 2015. Likewise approval has been issued by the Borno State government for the immediate payment of outstanding salaries of El-Kanemi Warriors FC, upon the receipt of bailout funds.
Dolphins FC have also made documents available to prove payments of the old salary up to October 2015.
Therefore, taking cognizance of the following:
1. the bulk of outstanding payments yet to be made consist of
the balance between the old salaries and the enhanced salaries (i.e. minimum wage). It is noted that monthly payments have been made to Players, albeit not up to the enhanced salaries agreed in the respective contracts;
2. following the issuance of summary jurisdiction notices, part payment has been commenced by some of the affected Clubs;
3. the LMC has engaged the State Governments in high level
discussions and received full and direct indemnity from the relevant State Governments - sponsors of the clubs - to pay the outstanding debts within the shortest possible time; we note the fact that State Governments across the Federation are experiencing financial difficulties, including with the payment of salaries of civil servants and are presently sourcing funds in order to make good all outstanding salaries;
4. it is evident that the breach of article B9.45 is widespread amongst Clubs currently participating in the NPFL and there is the need to be fair and just in the implementation of the Rules as well as to protect the integrity of competition;
5. the LMC is of the view that to impose sporting sanctions
(i.e. deduction of points) is likely to jeopardize the
integrity of competition.
6. under article B9.45, the provision that a Club in default shall be “liable to” a deduction of points implies that there is the option to impose the deduction of points as a sanction for breach of the rule; same must however be applied with full sense of responsibility, bearing in mind the objective of ensuring the actual payment of the debts owed;
Thus, the following non-sporting sanctions shall be imposed
on the four clubs (FC Taraba, Warri Wolves, El-Kanemi
Warriors and Dolphins) currently under review as well as
other Clubs that are in breach of article B9.45:
a) In line with article A5.3.10, no Club shall be registered to participate in the League except with proof that there are no outstanding payables in respect of players, coaches or other listed personnel; and or commencement of the new season with a deduction/deficit of six points;
b) In line with article B9.58, the LMC shall deduct the amount of any such outstanding payments from any distribution of Commercial Contract Money, Broadcasting Money or Title
Sponsorship Money payable to the debtor Club, and pay the same to the creditors to whom such sums are due;
c) A ban on the signing of new Players;
d) Forfeiture of revenue from the sale of players, which will
be used to offset outstanding debts
e) In the event of a relegated club being in breach, the LMC will work with the relevant bodies and leagues under the NFF to ensure that the sanctions are enforced until all outstanding debts are settled.
In addition, the LMC wishes to emphasize that the full
implementation of the Financial Performance Guarantee as
provided for in the Framework and Rules of the NPFL shall be a pre-condition for the registration of any Club to participate in the League henceforth.
Furthermore, the LMC notes the amendments to the FIFA
Regulations on the Status and Transfer of Players, particularly article 12bis which deals with “overdue payables” and which is required to be incorporated into domestic regulations. It is worthy of note that the amendment came into force on 1st March, 2015 (after the Framework and Rules of the NPFL 2014/2015 had already been in existence).
However, in conformity with the requirements of the FIFA
Regulations, the provisions on overdue payables shall forthwith be incorporated into the rules and regulations governing the NPFL, without prejudice to the application of further measures relating to the maintenance of contractual stability between professional players and clubs.
It is pertinent to state that these amendments include the
requirement that any club found to have delayed a due payment
for more than 30 days without a prima facie contractual basis and after the creditor has granted a deadline of at least ten days, may be sanctioned by any of the following means:
a) a warning;
b) a reprimand;
c) a fine;
d) a ban from registering any new players, either nationally
or internationally, for one or two entire and consecutive registration periods.
Finally, the LMC wishes to reaffirm its commitment to improving the financial and general wellbeing of the players and participating clubs in the NPFL, whilst urging all Nigerians, particularly corporate bodies to invest in their passion for the game.
