Connect with us
Advertisement

BFA wins Orange deal court battle

Orange FA cup

A long-winded case between the Botswana Football Association (BFA) and one branding and marketing company, Fresh Brands, has finally come to a crushing end with the former winning a legal battle following the court’s pronouncement that there was glaring lack of proof and evidence from the company involved.

Fresh Brands had sought legal redress, claiming that they played a crucial role in negotiating with Orange in 2018, on behalf of BFA, for the network giants to sponsor the famous FA Cup at a value P 12 000 000.

This is the action in which the company claimed an amount of P 1 200 000 from BFA, who are the apex body responsible for administering local football. Fresh Brands, from the court papers, argued that they are entitled to 10% commission. However, it came to the fore that the claim was based on an oral agreement between the two parties and nothing more.

In arguing their case, Fresh Brands called two witnesses, one a former employee of Orange Botswana and the other being their former employee. Moreover, Fresh Brands, had intended on calling two other firm witnesses being the Chief Executive Officer of Orange and another person who seemed to be involved in football affairs but not formally employed by any of the parties.

All the while, the court found out that on June 6th, 2017, both BFA and Fresh Brands entered into a written agreement where the company was to provide certain services to the association. Amongst the services expected was Brand Development, Management Services, Marketing Communications, Event Management, Public Relations Management, Sponsorship and Corporate Social Responsibility programs.

In terms of the agreement, Fresh Brands were to be paid a monthly retainer fee of P 20 000 including VAT. Furthermore, the complainant was to be paid 8-10% commission on the self-initiated sponsorship deals that have been approved by the association.

For all purposes of record keeping, the contract was to run for a period of 36 months. It has also come to the fore that in terms of schedule thereto, the commencement date was 23rd of February 2017 and the expiry date being the 23rd of February 2020. This is despite the fact that the agreement itself was signed on the 6th of June 2017.

However, the court established that during the course of the agreement, Fresh Brands became engaged in soliciting sponsorship for the association. Of particular importance was the sponsorship for the FA Cup which was being negotiated from Orange Botswana. The court records that certain meetings pursuant to the same sponsorship as well as presentations were held between Fresh Brands and Orange Botswana.

Later, it would appear that there was a back and forth between Orange Botswana and Fresh Brands and when a certain official of Orange by the name of Sandra Moreau left for her home country France, the whole sponsorship process was stalled. Court records that Moreau was the main driver of the entire process, representing Orange Botswana.

However, it turns out that the association sent a communiqué to Fresh Brands in August of 2017, giving them a 30 day notice to terminate the agreement aforesaid. The association argued that the termination was on account of financial constraint.

Moreover, the association promised to engage with Fresh Brands on need-be basis and details of such agreement were to be further discussed. BFA further bind themselves that they will settle the outstanding payment due to Fresh Brands. Of paramount importance, the court found out that at the time of termination, the Orange Sponsorship negotiations were not concluded but stalled.

It also does not appear anywhere that payments from the association to Fresh Brands were made regarding the efforts made in respect of securing the sponsorship. However, the company was paid all that was due to it, including the retainer fee of P 20 000 per month.

The company had argued that they were rather stunned by the turn of events when BFA and Orange entered into a sponsorship agreement and whose massive launch was conducted and announced in 2018. The companies cried foul that they were cheated along the way and strongly argued that they entered into oral agreement with the association after the termination was done.

In determining the case, the court had to rely on the fact of the existence of an oral agreement as alleged by Fresh Brands.
It came to one conclusion; Fresh Brands failed to provide enough proof with regards to the oral agreement.

What in fact happened is that Fresh Brands felt entitled that they did a lot of work towards securing sponsorship before the termination of the contract was done.

The court states that Fresh Brands should have found a way within the terminated agreement of getting rewarded in respect of the work done to pursue the Orange sponsorship, but the company chose to allege an oral agreement.

Furthermore, the court said that the company failed to pursue the attendance of Orange CEO Dr. Benon and one Fobby Radipotsane who could corroborate his allegation of an oral agreement. The court said that was flimsy on the side of Fresh Brands in view of the fact that the same witnesses had been subpoenaed.

Fresh Brands was therefore forced to agree that without its witnesses, the case automatically falls off and consequently dismissed with costs.

Sport

Athletics clubs run out of finances

28th November 2022

Athletics is one of the sporting activities that for many years has been consistently performing extremely well in international competitions. One of the reasons is the availability of qualified and experienced coaches, who have been working tirelessly on the ground to ensure that they scout talent and develop more athletes.

This content is locked

Login To Unlock The Content!

Continue Reading

Sport

BFL fails to secure 2022/23 sponsor

20th October 2022

For the first time after eons, football clubs plying their trade in the elite league are walking in the shadow of the undefined with nothing concrete agreed and on sight before the commencement of the football season.

This content is locked

Login To Unlock The Content!

Continue Reading

Sport

Letsile Tebogo’s USA move USA on hold

12th October 2022

The current world Under-20 100m record holder, Letsile Tebogo’s anticipated move to the United States of America (USA) has been put on hold, WeekendSport can reveal.

This content is locked

Login To Unlock The Content!

Continue Reading