Licence withdrawal: LMC Board calls for calm, says no court order declaring it illegal

League Management Company (LMC) Logo

Board insists LMC legally situated both in NFF, FIFA Statutes and Nigeria corporate laws (CAC Act)

By Emma Ogbuehi

The Board of the League Management Company Ltd (LMC) has reacted to a release from the Federal Ministry of Youth and Sports Development (FMYSD) to the effect that the Federal Government has declared the LMC “illegal”, urging stakeholders to remain calm while it engages the Ministry in conjunction with the Nigeria Football Federation (NFF).

In a statement, the league organiser said ” the LMC Ltd wishes to call for calm from all its participating clubs, sponsors and partners and stakeholders’ as it will in conjunction with NFF be engaging the FMYSD to provide clarifications to ensure all parties are on the same page and keep acting within the realm of its authority. Fundamentally, the protection of the integrity of the NPFL which the LMC Ltd has been toiling over the last decade to build in spite of the challenges is most paramount at all times”.

It said the statement is only being issued for the sake of good order, stability of the Nigeria Professional Football League (NPFL) and the Participating Clubs, the LMC current and potential sponsors and indeed the entire Nigerian Football stakeholders to clarify and set matters straight for the records.

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The LMC Board also expressed shock at the FYMSD coming up with the public statement/position without first engaging the LMC/NFF to discuss any concerns or information regarding the  LMC Ltd so as to hear from the other side and enable it come to a balanced position based on facts and law.

“It is LMC’s belief that had this simple fundamental procedure and legal step of fair hearing been done, there would have absolutely been no need or basis for the FMYSD position and or statement”, the statement argued.

The LMC insisted that “there is absolutely no court order or proceedings declaring the LMC as illegal. Likewise, there is no challenge in any court to the legal status of LMC”.

Tracking the formation and registration of the company, it noted that, “for the avoidance of doubt, LMC Ltd was duly and properly formed in 2013 with all due processes adhered to and in line with both Football laws/regulations and Nigeria’s Corporate Affairs Laws (Companies and Allied Matters, Act – CAC Act).

“The participating clubs of the NPFL were part and parcel of this processes in line with the stipulations of the NFF Statutes (article 18 of the NFF Statutes)”.

It further averred that “the LMC Ltd Supplementary Regulations (Governance Structure) was agreed with the NPFL Clubs in accordance with the NFF Statutes on 6th September 2013, and duly filed at the CAC with CAC approval appropriately issued on 2nd June 2014

“Subsequently, the NFF Executive Committees at its meeting of 8th October 2014 in Abuja and the NFF Congress (the Supreme Legislative body of the NFF) at its meeting of 23rd November 2014 in Lagos duly approved the LMC Supplementary Regulations/Governing Structure pursuant to the powers vested on the Congress under the NFF Statutes (article 18 and article 78 subsection 2 and 3) as well as FIFA Statutes (articles 17 and 18) to delegate the right to an independent/subordinate body to manage/ organise its competitions (NPFL inclusive) and to make  regulations and or approved regulations for the management of the domestic leagues”.

The statement submitted that it is based on the above compliance with football and legal regulations that it remains clear that the LMC Ltd was properly set up with the full  engagement of the NFF and the participating NPFL clubs and in full compliance with the extant football Laws (articles 18 and 78 of the NFF Statutes and 17 and 18 of FIFA Statutes with full approval of NPFL Clubs, NFF

Executive Committee, NFF Congress and also the corporate laws/regulations of Nigeria (CAC Act) with the full approval of the Corporate Affairs Commission (CAC).

It went on to correct the impression that the LMC Ltd is a private body, stating that, “the LMC LTD is not a private body as has been misrepresented but a not-for-profit company duly formed by the NFF and the participating NPFL clubs in accordance with their powers as enshrined in the extant NFF Statutes.

It further explained that “the NFF hold the golden shares in LMC Ltd with specific responsibilities and veto powers on the operations and organisation of the NPFL, while the other shares are held for and on behalf of the NPFL participating clubs. All shares in the LMC Ltd are nominal as the entire revenue of the NPFL is for the operations and running of the NPFL and distribution to the participating clubs in line with the distribution formula agreed with the clubs”.

It recalled that prior to formation of the LMC Ltd, the Nigeria elite professional football league was run and operated by the Nigeria Football League Limited (NFL Ltd) formed in 2006 with NFA and participating clubs as shareholders with RC 649651 and dated 4th April 2006.

The NFL Ltd, it noted, operated the league up to 20th January 2012 when the Federal High Court via judgement in Suit No: FHC/ABJ/CS/179/2010 in matter between Dr. Sam Sam Jaja (plantiff) vs Nigeria Football League Ltd, Nigeria Football Association/NFF, Mr. Anthony Rafua, Chief Felix Anyansi and Corporate Affair Commission (collectively as defendants), declared the NFL Ltd as

wrongly incorporated since its incorporation documents were signed by just one legal entity and thus illegal and void and further issued an order to mandatorily direct the 5th Defendant (Corporate Affairs Commission) to immediately take steps for winding up of the 1st Defendant (NFL Ltd) for infraction of the provisions of the Companies and Allied Matters Act (CAC Act).

The Board further argued that “what the LMC deserves from FGN is protection, support and provision of enabling environment to thrive as seen in all successful jurisdictions and when and where any changes become desirable in this structure, it has to be done within the context of the LMC Ltd’s approved governance and regulatory documents”.

The Board believed that from the facts available, “it is very evident that the FMYSD took its position based on misrepresented and muddled up information presented to it by some parties that are clearly not grounded on the issues and or with ulterior motives.

The Board reiterated that it will in the days ahead engage in conjunction with the NFF, the Sports Ministry with a view to providing the right perspective to the founding of the LMC Ltd and its operations is a step bring all parties to the same page.

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