MFL sues TM for RM428.49 million

PETALING JAYA: Telekom Malaysia Bhd (TM) yesterday received a writ of summons and statement of claim from Malaysian Football League LLP (MFL) seeking RM428.49 million in payment and other reliefs from TM in relation to sponsorship and broadcast disputes.

This comes after TM said it is no longer a sponsor of the MFL from 2019 onwards as both parties could not agree on the terms of the agreement.

MFL claimed that TM had breached the term sheet and MFL had lawfully terminated it by way of its notice of termination dated March 16, 2019.

MFL alleged that TM is liable to pay MFL RM186,844 being the amount due for Season 2018; RM25.85 million being Payment 1 for the sponsorship and broadcast consideration for 2019; RM25.85 million being Payment 2 for the sponsorship and broadcast consideration for 2019 on or before June 2, 2019; and RM376.6 million being the remaining sponsorship and broadcast consideration for years 2020 until 2025.

MFL is also seeking an order compelling TM to remove, take down and delete all references of TM as a sponsor or official telecommunication and broadcast partner of MFL in all TM’s materials pub-lished or issued by TM or TM’s directors, partners, officers, employees, rep-resentatives or agents within 48 hours from the date of this Judgment.

TM said the claim is not expected to have any operational impact on the group.

“The financial impact, if any, cannot be ascertained at this juncture as it will depend on the outcome of the legal proceedings of the claim.”

TM said it has instructed its solicitors to take the necessary steps to defend the claim.

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