Confederation of African Football (CAF) and Lagardere Sports are in a tough battle after the federation scrapped a $1 billion television and marketing rights deal with the organisation.
CAF took the action in the wake of separate judgments that the contract breached competition rules.
According to reports, Lagardere Sports officials have been saying that they would fight to enforce the contract.
The French-based company called CAF’S move “unlawful, unreasonable and unjustified.”
Lagardere insisted that it would defend its agreement with the Africa Football ruling body that runs from 2017 to 2028.
It suggested that it may accept changes to the terms of the deal, but that if all else fails it would seek compensation in cash.
However, CAF said it had no choice but to cancel the deal after two court judgments went against it.
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A Cairo court ruled last November that the agreement breached “Egyptian competition rules.
“The court held that Lagardere was appointed as CAF’s exclusive agent for marketing and media rights for an uninterrupted 20-year period without any open tender,” CAF said in a statement on Friday.
The court fined CAF 100 million Egyptian pounds ($6.2 million).
The Competition Commission of the Common Market for Eastern and Southern Africa (CCC) had also found in 2017 that the agreement infringed competition regulations.
“Given the above developments, CAF had no choice but to terminate the agreement,” the sport ruling body stated.