The handover of Nyasa Big Bullets to Nyasa Manufacturing Company (NMC) took place Thursday after the company paid a nominal value of K1.
According to www businessdictionary.com, “a nominal value is an estimated price of an item that may bear little or no relation to its market price, and which is quoted to initiate a negotiation or transaction.
“Nominal price is used where either the recent market price has not been established (the item is new), or where demand and supply situation makes the market-price uncertain (the item is scarce).”
Former Bullets chairperson, Noel Lipipa, disclosed the value during the handover ceremony that took place at NMC’s offices in Blantyre.
Lipipa said the agreement involves NMC inheriting debts estimated at K185 million.
“It is called nominal value. We have tried to reduce the debts but the sponsor said he will settle them within six months. The annual sponsorship also continues as per agreement. That is why it was important to sign this memorandum of understanding (MoU) so that next time they do not fulfil the conditions, we should be at liberty to take them to task,” Lipipa said.
Some former Bullets officials have been asking for a copy of the MoU after concerns on the manner in which the takeover happened.
Bullets Chief Executive Officer, Fleetwood Haiya, said the handover was a milestone for the team and the sponsor.
Nyasa completes BB takeover.
“We have had issues with the handover and we thought that before we start the new season, we should settle the issue once and for all. Our task now is to look for other partners as we run the team as a business. The sponsor has committed to fulfilling the conditions stipulated in the agreement.
“They have bought the Marcopolo bus and soon we shall be announcing the buying of a piece of land where we want to build a stadium for the team. But before that, we intend to facilitate Kamuzu Stadium takeover together with our counterparts, Be Forward Wanderers,” Haiya said.
According to Lipipa, a 12-member committee led by former Bullets’ board of trustees chairperson, James Busile, has been tasked with ensuring that NMC adheres to the conditions of the agreement.
Wanderers General Secretary, Mike Butao, and Football Association of Malawi Commercial and Marketing Director, Limbani Matola, witnessed the signing of the MoU.
Matola and Butao commended Bullets for taking a bold decision to go commercial.
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