Asante Kotoko has revealed that their main sponsors, MTN, will freeze their monthly financial obligations to the team from this month due to revenue stresses caused by the Coronavirus pandemic in the country and all around the world.
Various industries have been hit very hard by the pandemic and revenues and profits have been affected by the fact some entities have failed to make money due to the lack of activities and processes that rake in money.
Kotoko, their spokesperson, Kennedy Boakye Ansah, confirmed to Citi Sports in an interview that MTN had told them of the latest development and the club fully understand the circumstances leading to the decision taken by MTN.
“We received a letter from MTN informing us that because of the Coronavirus pandemic, they are holding on to the financial obligations to the club until after we have overcome the Covid-19 pandemic.
We know that it is difficult for everybody and MTN is no exception, So, officially, we have been notified of this.”
Some quarters have hinted that the freeze on financial obligations is contained in the contract and it had to be activated due to force majeure or any event that occurs through no fault of the parties involved.
Due to the suspension of the financial obligations, Kotoko will lose an amount of GHS 70, 000 a month from MTN.
The club and MTN have been partners since 2011 and the newest turn of events is the first major disruption in their relationship.