Argentina deal: Why did Kerala govt seek Embassy help over a $9 million payment?
The Pinarayi Vijayan government sought diplomatic intervention from the Indian Embassy in Argentina to resolve a dispute between commercial sponsor Reporter Broadcasting Company (RBC) and the Argentine Football Association (AFA) concerning a $9 million payment for a friendly match.
The Pinarayi Vijayan government sought diplomatic intervention from the Indian Embassy in Argentina to resolve a dispute between commercial sponsor Reporter Broadcasting Company (RBC) and the Argentine Football Association (AFA) concerning a $9 million payment for a friendly match.
The Pinarayi Vijayan government sought diplomatic intervention from the Indian Embassy in Argentina to resolve a dispute between commercial sponsor Reporter Broadcasting Company (RBC) and the Argentine Football Association (AFA) concerning a $9 million payment for a friendly match.
The Pinarayi Vijayan government wrote to the Indian Embassy in Argentina on behalf of the sponsor, requesting its intervention in the dispute that arose in connection with the Friendly Match Agreement with the Argentine Football Association (AFA). On July 7, 2025, the letter issued by the then Secretary (Industries, Sports & Youth Affairs) sought urgent diplomatic intervention on behalf of the event's commercial sponsor, Reporter Broadcasting Company Pvt. Ltd. (RBC), after relations between the sponsor and the Argentine Football Association (AFA) reached a bitter impasse over a $9 million remittance.
The bank records dated June 6, 2025, which have come into the public domain, suggest that the commercial sponsor executed an outward wire transfer of $9 million to TOURPRODENTER LLC, the agency that serves as the exclusive international commercial agent for the Argentine Football Association (AFA), managing overseas sponsorships, broadcasting rights, and revenues from friendly matches.
The transaction, however, triggered immediate conflict. On June 17, 2025, the AFA’s Leandro Petersen notified the Kerala Sports Ministry that because the transfer followed months of silence beyond the initial timelines, the contract was deemed previously terminated. As a condition of moving forward, the AFA unilaterally appropriated $4,000,000 as compensation for delayed remittance, logistical damages, and legal expenses, and $5,000,000 as a credit held towards a completely renegotiated contract for an alternate future date. Furthermore, the AFA stated that the original match slot between October and November 2025 was no longer available.
Notably, RBC and the former minister now maintain that the agreement was solely between RBC and the AFA. However, a letter written by the then Sports Secretary A.P.M. Mohammed Hanish says that, following the necessary approvals from the Government of India, a tripartite arrangement was formulated involving the AFA, the Government of Kerala, and M/s Reporter Broadcasting Company Pvt. Ltd., which came in as the commercial sponsor for the event.
Notably, no government representative signed any of the agreements. Nevertheless, the Sports Secretary sought the assistance of the High Commission.
“As per the agreement executed between the AFA and M/s Reporter Broadcasting Company Pvt. Ltd., the total contractual value was set at USD 15 million, of which USD 9 million has already been remitted. The payment was made on June 6, 2025.
“Despite this substantial payment and clear commitments from our side, the AFA has now unilaterally stated that it will classify USD 4 million of the amount as compensation for delayed remittance and withhold the remaining USD 5 million to be adjusted against a new contract, which is yet to be shared with us.
“Moreover, the AFA failed to disclose in a timely manner the non-availability of the original match slot. This non-disclosure caused significant financial and procedural difficulties for us, including reputational damage, delays in inter-ministerial coordination and the burden of raising funds through high-interest instruments. Had the AFA communicated the non-availability earlier or shared its intention to revise the agreement, alternative actions could have been considered,” the letter says.
Hanish also noted that Kerala had clearly conveyed to the AFA that the State would be unable to accept any new match slot beyond November 2025 due to financial and logistical constraints, and that any delay or renegotiation would render the event economically unfeasible.
Despite these assertions, the sponsor later renegotiated the arrangement. The revised proposal initially downsized the event to a single friendly match in Kerala in November, while acknowledging the full USD 9 million as credit and setting a 45-day deadline for the remaining USD 5.5 million balance. In November, a formal settlement rescheduled the friendly fixture to the March 23–31, 2026 FIFA window, with the AFA agreeing to temporarily refund the USD 5.5 million instalment while retaining the original USD 9 million deposit.