Former Ghana Premier League sponsor Capital Bank pulled out their sponsorship with the Ghana Football Association because they were broke, this is according to a recent report released by the Bank of Ghana.
When the Bank decided to pull out their deal many noted that GFA failed to honour major part of the contract, hence the abrupt abrogation.
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).
Capital Bank in January 2014, signed a five-year $10m sponsorship deal with GFA to sponsor the Ghana League.
GFA president Kwasi Nyantakyi somewhere last year noted their desire to head to court should the bank refuse to rescind the decision to withdraw their sponsorship package.