KUALA LUMPUR – With the Malaysia Cup cancelled indefinitely by the Malaysian Football League (MFL) yesterday, speculation of a budget cut by sponsors of the M-League next season is growing stronger within the industry.
According to a source in the football fraternity, MFL’s finances of almost RM40 million look to be hanging by a thread as sponsors are not satisfied with the return on investment this season, which has been further compounded by the Covid-19 crisis.
The sponsorship amount that MFL receives includes broadcasting rights.
The source revealed that sponsors are not satisfied with how things are going now, and are in doubt about how the situation will be next year. It is also believed that limited branding and activation has significantly increased their intentions to slash the budget.
“The sponsors want to do more, but MFL cannot fulfil their wishes because of the strict SOPs that have been placed by the government due to the situation. So, the amount they have invested does not tally with the benefits that they were promised to get.”
The current sponsors for the M-League are Telekom Malaysia (TM), CIMB, Air Asia, 100Plus (F&N) and Nike, with the telco company leading the pack with a sponsorship of RM30 million a year to MFL.
The sponsorship amount that TM gave MFL this year includes broadcasting rights, and also as the title sponsor for the Malaysia Cup. CIMB sponsors RM2 million a year as the title sponsor for the Super League.
The source said the sponsorship deals between MFL and the other companies remain undisclosed.
The source added that earlier this year, MFL lost RM1 million after its partnership with Shopee ended abruptly due to the pandemic.
“Shopee was the title sponsor for the FA Cup for 2018 and 2019, and then this year, they inked a one-year deal with MFL in February, only for Covid-19 to wreak havoc.
“As we went into lockdown in March, and after several discussions among the stakeholders, MFL decided to pull the plug on the FA Cup, which meant the end of the partnership.”
The government is adamant about not allowing the tournament to continue, although there have been calls to create a quarantine bubble for the competition.
With the current scenario, and with sponsors suggesting a reduction in their sponsorship amount, it is an uphill task for MFL to run the Super League, Premier League, Malaysia Cup and FA Cup next season. – The Vibes, November 13, 2020
