Premier League club Valletta are set to take legal action against chief sponsors Insignia for breach of contract.
Sources have told The Sunday Times of Malta that the committee of Valletta FC have decided to file a lawsuit against Insignia after the latter reportedly failed to honour their financial commitments as stipulated in the two-year contract signed by the two parties in the summer of 2013.
As the final portion of the sponsorship fee ought to have been paid in January, Valletta have sent two letters to Insignia expressing concern over the delayed payment but it is understood that the London-based financial services company have not replied to the club's correspondence.
Insiders claim that this situation has left Valletta with no option but to sue Insignia to recover what is due to the club.
At the time of writing, questions sent to Insignia about the matter remained unanswered.
Victor Sciriha, the Valletta FC president, had alluded to the problems with Insignia in an interview with Times of Malta in the wake of his team's 2-1 upset to Balzan in the first
The prospect of a legal wrangle with their main sponsors represents another setback in a tumultuous season for Valletta whose hopes of retaining the Premier League title are as good as over as the champions trail Hibernians by eight points with the leaders having a game in hand.
Valletta’s two-year agreement with Insignia was hailed as the most lucrative sponsorship deal for a Maltese football club when it was announced before the start of season 2013/14.
Insignia, who pride themselves on being one of the most bespoke high-end lifestyle management service groups in the world, were widely credited with having played a key role in Valletta's league and cup success last season.
In January 2014, Insignia financed the recruitment of Dutch coach Andre Paus, now in charge of Cypriot club Anorthosis Famagusta, and a host of foreign players, three of whom, namely Georgian goalkeeper Nukri Revishvili and midfielder Irakli Maisuradze and Brazilian forward Alan Da Silva Souza, were instrumental in Valletta’s double triumph.