Private football body’s RM2 million debt to sports ministry agency waived under 2024 ‘advertising’ deal

An agency under the Ministry of Youth and Sports (KBS) in charge of major stadiums and sports complexes nationwide agreed in 2024 to forgo RM2 million owed to it by the Malaysian Football League (MFL) for stadium rentals, MalaysiaNow can reveal.

MFL, the private entity that runs major football championships such as the Super League and the Malaysia Cup, owed the Malaysia Stadium Corporation (PSM) a total of RM2.38 million in outstanding rentals for events held at the National Stadium in Bukit Jalil between December 2018 and October 2020.

Instead of demanding full repayment of the debt in cash – RM2,388,875.60 to be exact – the ministry, through PSM, is believed to have agreed to a proposal by MFL that it pay only RM388,000, with the remaining RM2 million to be settled “in kind” through a series of advertising campaigns to promote PSM and the ministry on LED billboards, social media and television during MFL football events.

Documents and letters obtained by MalaysiaNow show that the proposal was first put forward by MFL under its then CEO, Stuart Ramalingam, following a discussion with then youth and sports minister Hannah Yeoh in September 2023, and subsequent meetings between MFL and PSM.

“MFL appeals and seeks PSM’s goodwill to accept MFL’s original proposal, namely that RM2,000,000 of the debt be offset against sponsorship and advertising costs, while the remaining debt of RM388,875.60 be paid in instalments,” said Ramalingam, who has since been appointed chairman of an agency under Yeoh’s current portfolio as the minister in charge of the federal territories, in a letter to PSM dated Nov 16, 2023.

MFL claims plan is worth three times what it owed

Under the arrangement, MFL agrees to carry promotional messages from PSM and KBS on LED billboards during 232 matches spanning three football championships it organises: the Super League, the FA Cup and the Malaysia Cup.

MFL also agrees to display PSM’s logo across its social media posts, during television exposure and on backdrops during press conferences and flash interviews, in addition to providing 650 complimentary tickets to its various football matches.

Based on calculations detailed in MFL’s proposal, it is claimed that the promotional campaign has a return-on-investment value of RM7.2 million, suggesting that the deal would give PSM more than three times what MFL owes it.

The deal comes with several light conditions and requirements which can be easily fulfilled by MFL.

These include a requirement for MFL to sign an undertaking and to agree that PSM may appoint its agents to sell advertisement slots allotted to it, failing which PSM will take legal action against MFL and blacklist it from future stadium bookings.

MalaysiaNow has attempted to get a response from the parties involved in the deal, only to be given the runaround.

Yeoh’s office declined to comment, saying questions should be directed to MFL.

When contacted, a senior source in MFL’s current leadership merely said that whatever financial deal the organisation had struck in 2024 would be settled in October.

“I cannot confirm what transpired in 2024 but what I can say is, whatever debt with PSM will be settled next month,” said the source on condition of anonymity.

When contacted, Ramalingam, who in February was appointed chairman of the Federal Territories Sports Council which comes under the Federal Territories Department led by Yeoh, also declined to respond.

“So sorry, it would not be right for me to comment on this now as I’m no longer with the organisation. Do reach out to MFL for this. I am sure they can provide a response to you where needed,” he said in a brief reply.