TFC’s RM3mil sponsorship row takes new turn as claim goes to trial

A RM3 million sponsorship dispute involving Terengganu Football Club (TFC) has taken a new turn, with the High Court in Kuala Terengganu allowing a claim against a businessman accused of arranging an alleged front sponsorship to proceed to trial.

Judicial Commissioner Yusrin Faidz Yusoff dismissed an application by Suffian Muda to set aside a third-party notice issued against him by Vearich International Sdn Bhd, which had agreed to sponsor TFC for the 2024/2025 season.

Third-party proceedings allow a defendant to bring another person or entity into an existing lawsuit to determine related claims or liabilities.

Vearich signed a sponsorship agreement with TFC on April 1, 2024, undertaking to pay RM3 million in five instalments. In return, it was promised extensive branding and commercial benefits, including logo placement on TFC’s playing jerseys, advertising exposure and promotional rights involving the club’s players.

However, Vearich allegedly failed to make the first RM1 million payment and informed TFC that it was withdrawing from the sponsorship.

In its defence, Vearich claimed it had never genuinely intended to sponsor the club and had been induced to sign the agreement through alleged misrepresentations involving Suffian and another businessman, Danial Malik Fisol, also known as Danial or ScaleX.

Vearich alleged that it was merely a front or nominee sponsor, with Danial supposed to be the actual source of the sponsorship funds.

Suffian denied the allegations, arguing that he was not a party to the sponsorship agreement and that there was no legal basis to hold him responsible for Vearich’s contractual obligations.

However, the judge said the absence of a direct contractual relationship did not automatically defeat a claim for indemnity.

“A right to indemnity is not confined to cases of contract. It can arise from an obligation imposed by law, equity or from a relationship between the parties,” he said.

The judge also found that Vearich had raised sufficient factual issues to warrant a trial, including Suffian’s alleged role in facilitating negotiations and introducing Danial as the source of the funds.

Emphasising the limits of an interlocutory hearing, he said: “The court is not, at this stage, to assess the credibility of the applicant or the defendant’s witnesses.”

He added that the existence of disputed facts made the matter unsuitable for summary disposal.

The court ordered Suffian to pay Vearich RM3,000 in costs.

The ruling does not establish that fraud or misrepresentation occurred, nor does it determine whether Vearich is liable to pay TFC. Those issues remain to be decided at trial.

Hazri Haris appeared for TFC, while Batrisyia Aida Radzali and Radzi Pauze represented Vearich. Syed Yusuf Syed Zaid and Abdul Jalil Salam Muhamad appeared for Suffian.

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