Soccer czars and brewery in sponsorship row

PANAMA'S soccer federation and a former sponsor are engaged in their own shoot out as they trade versions of where the game stands.

 It comes after the sponsor, the maker of the Panama beer brand, got a court order freezing $6 million of the federation’s funds, and the federation suspended training of the national team ahead of its next qualifying matches for the 2014 World Cup in June.
The federation (Fepafut) claimed that it had no operating funds, and the game was in danger across the country. It also said there were no funds for the upkeep of Rommel Fernandez Stadium where international games are played.
The former sponsors shot back, via PR spokesperson Rossana Uribe, who said that Fepafut can continue to use their funds. It only needs to find an insurer to issue a bond and the funds will be unfrozen.
 Fepafut said on Friday, April 26, that it has no assets to go to an insurance company for a bond.
The federation had its bank accounts frozen under a court order obtained by Cervecería Barú, which had a sponsorship deal with the team that was ended by the federation.
One of the disputed points in the sponsorship deal was a clause that states:
"If either party unilaterally terminated the present contract without just cause, the non-complying party must pay the party in compliance with, as a contractual penalty, the overall value of the contract without prejudice to legal actions to which it is entitled for losses, damages and profits that are directly related to the present contract."
The agreement between Fepafut and the brewery established aeconomic contribution of $480,000 over four years.
Fepafut said in December 2012 that it had ended its relationship with the brewery, while announcing the signing of a new contract for $10 million dollars with Cervecería Nacional., makers of Atlas beer.
The federation argued that this is decision was made in order to get more support for the development of football in general.
Baru brewery spokespersons said that the federation was aware of the consequences of ending the contract. It has referred the matter to the Chamber of Commerce for arbitration.
While Fepafut continues analyzing the steps forward against the seizure of its bank accounts, Baru said that the leadership of the sports organization knew this would happen and has the mechanisms available to keep operating.
"They knew that this was coming," Uribe said, adding it has been pending since December.