All Kasi summons BFA ...as local sports apparel company challenges contract termination
In a significant legal battle, popular local clothing brand, All Kasi has filed a lawsuit against the Botswana Football Association (BFA), following the abrupt termination of their three-year contract after just nine months of collaboration. All Kasi contends that the BFA's decision to terminate the agreement is unlawful, while the BFA claims that the technical partner has repeatedly failed to meet the material terms outlined in their kit supply and sponsorship agreement. The case is set to be heard today (Wednesday), with All Kasi as the applicant and the BFA as the respondent.
The Botswana Football Association entered into a three-year agreement with Tsa Gae PTY LTD, a company that produces All Kasi merchandise, under the leadership of the then BFA President, Maclean Letshwiti, starting from September 1, 2024. The local brand became popular back in 2012 when it served as the technical kit sponsor for the Zebras during their qualification for the 2012 AFCON finals. All Kasi acknowledges that after the BFA elected a new committee, they had a meeting with them to review the contract. Between September and October of last year, there was an incident that raised eyebrows when the junior teams went to COSAFA with the previous technical sports merchandise. Subsequently, there were complaints from the public who wanted to purchase merchandise, but it was not available.
On May 2, the Botswana Football Association wrote to All Kasi, terminating their contract as the technical kit sponsor. The Association previously communicated its concerns regarding All Kasi's repeated failure to comply with the material terms of the written agreement entered into on September 1, 2024, known as the Kit Supply and Sponsorship Agreement ('the Agreement'). They noted that these concerns include, but are not limited to, All Kasi's failure to remit the agreed 5% royalties to the Association despite repeated demands, as well as their inability to fully supply the required kits for the national teams. The Association stated that these failures breach the terms of the Agreement and were invoking the provisions of Clause 12.2 of the said Agreement.
All Kasi did not take the news well, as on May 6, they responded to the BFA, stating that the termination is unlawful. They noted that the company received the letter on May 5, and therefore, it was not delivered in compliance with the notices and domicilia provisions in the contract. They expressed their considered view that the purported termination of the kit contract by the BFA is unlawful, as it does not comply with the provisions of Clause 12.2 of the Agreement. They argued that they were never given the 30 days provided for by the contract to remedy any alleged breach, whether it be the payment of royalties or the failure to supply the kits as alleged.
In their court application, All Kasi stated that they have a significant amount of inventory in stock and also in production. The merchandise was designed specifically for the contract and bears the respondent's logo, some of it also features the names of the players who wear it and is produced in their specific sizes, and therefore cannot be sold anywhere else. They also highlighted that they have obtained the necessary financing for the project, which was supposed to last for three years, through financiers, and have monthly instalments they are paying. They could not have incurred this financing had it not been for their obligations under the contract. They states that this presents a heavy financial burden that they, as a small business, will not be able to discharge without the contract.