Sports

Troubled Capital Bank withdrew Ghana FA sponsorship because they were BROKE

Capital Bank withdrew its sponsorship with the Ghana FA because they were in a financial quagmire to throw claims of the noncompetitive and poor branding of the league into the dustbin.

The indigenous bank withdrew its association with the FA in 2015 citing internal restructuring as their chief reason.

However, a recent report released by the Bank of Ghana has exposed the hidden reason behind outfit’s decision to severe ties with the federation.

It had been widely claimed that poor branding of the league resulting in low publicity and patronage as well as constant change of dates for games within the season accounted for the decision to pull plugs on the sponsorship.

But it has been revealed that the bank were not financially sound to continue their relationship with the GFA.

A statement by the Central Bank stated that it has “approved the Purchase and Assumption transaction with GCB Bank Ltd that transfers all deposits and selected assets of UT Bank Ltd and Capital Bank Ltd to GCB Bank Ltd.”

The statement also added the “Bank of Ghana has revoked the Licenses of UT Bank Ltd and Capital Bank Ltd. This action has become necessary due to severe impairment of their capital. The remaining assets and liabilities will be realised and settled respectively through a receivership process to be undertaken by Messers Vish Ashiagbor and Eric Nana Nipah of PricewaterhouseCoopers (PwC).

The bank signed a five-year-deal with the Ghana Football Association in January 2014, worth $10 million in total and $2 million annually, but opted to halt all actions related to the league after the company reached a decision to undergo restructuring- which has turned out to be false.