Pham Ngoc Vien, president of the Vietnam Football League, says the offer has been informally accepted and should go through. "It will give the league a timely injection of capital as it prepares to turn semi-professional next season," he says.
According to the outline agreement, Strata will provide the league with $2 million per year during the next five years. Half of this will be divided among the league's 10 semi-professional clubs and the rest spent on awards, training programs and other promotional activities. In return, Strata will be entitled to collect revenues from in-stadium advertising during league games.
The agreement does not cover the commercial broadcast of soccer matches or TV advertising.
Mr. Vien says that the government has agreed in principle with the proposal but adds that the VFL and relevant ministries will need to look at the details again before giving the final go ahead.
The deal has already come under fire from the local media who describe it as inadequate and likely to deter other companies from sponsoring the new semi-professional clubs next season.
Copyright June 2000, Crain Communications Inc.