GPL/LMC Performance Bond: Pillars blaze trail, submit 1st quarter guarantee
Glo Premier League defending champions, Kano Pillars on Wednesday, March 26 became the first Club to comply with the Nigeria Professional Football League 2013/14 registration requirement of providing a financial performance guarantee.
The Club in a letter to the League Management Company (LMC) attached a Performance Guarantee for N25 million (N25, 000, 000) from a Fidelity Bank Plc, Kano Branch with reference number FB/007/OBG/0314/1034 and dated March 17, 2014.
The performance guarantee represents the first tranch of the quarterly guarantee of the total N100m that Clubs are required to provide under the season’s licensing requirements.
“We demanded the performance guarantee from clubs as evidence of their capacity to meet financial obligations to playing staff, other employees and vendors. It will eliminate the scourge of accumulated indebtedness especially to players by clubs”, LMC Chairman, Hon. Nduka Irabor had explained at the introduction of the registration requirements.
Clubs were prior to the start of the season mandated to provide on or before Match Day 9’of the season their performance guarantee of N25m which is renewable every quarter.
The LMC Chairman commended Kano Pillars for complying with the requirement and urged other Clubs to ensure they met the deadline.
“We are delighted by the development, Kano Pillars have demonstrated a capacity to operate as a professional football club in more ways and it is our expectation that other clubs will do same and avoid the consequences of late or non-compliance”, remarked Irabor.
Clubs that fail to meet the requirement will have six points and six goals deducted from their already accrued points.
The LMC has also instituted measures to monitor compliance with payment of the minimum wage as at when due to players.
Players’ contracts have been formatted or ensure that they are no longer playing without valid contracts as all the clubs were required to deposit signed copies of each player’s contract at the point of registration.
“We will go further to demand that payments are made to the players bank account. Cash transactions are to be abolished. Clubs have been directed to open salary accounts for each player .This way, we will ensure that no club owes or under pays their staff”, Irabor explained.
The total sum of the performance guarantee is N100m but the LMC reduced it to quarterly renewable provision of N25m for ease of operations and administration for the clubs.