PETALING JAYA - The Football Association of Malaysia (FAM) may find itself in even more financial trouble, pending the resolution of two legal cases it is involved in.
FAM president Tunku Ismail Sultan Ibrahim said the association had signed contracts favouring "other parties" and it was left in a vulnerable position due to the "poorly written agreements."
"FAM is currently involved in two legal cases, one of which is against MP & Silva and the other against a company with whom the FAM signed with for the Harimau Muda development squad in Slovakia.
"In the event the FAM loses these legal battles, the FAM would be required to pay RM25mil and RM9mil respectively," the Johor Crown Prince said in a statement posted on the Johor Southern Tigers Facebook page.
MP & Silva is a London-based international sports media rights organisation which set up a company - Football Malaysia Limited Liability Partnership (FMLLP) - with the FAM in a joint partnership to manage the M-League, including its commercial and broadcast rights.
Tunku Ismail questioned how the FAM's previous exco members could have signed contracts in favour of the other parties, saying that the priorities and financial security should have been made in FAM's favour.
"Due to this, even with the capital injections the FAM may receive, it will all be futile as the funds would have to be channelled back out in the event we lose these legal cases," he said.
He added that he has contacted associates in Singapore as well as contacts in the Johor government to assist in facilitating a meeting between him and MP & Silva.
"I will try my best to settle the matter outside the courts and retain the money in FAM," he said.
On another note, Tunku Ismail said the FAM had received complaints of referees performing badly in recent matches.
"With this, I have instructed FMLLP to review the agreement we have with the Japan FA, so that we will be able to use overseas referees for big and important matches. This is to avoid any side from pointing fingers," he said.