The Sports Development Foundation (SDF) has reneged on a decision not to bail out the ailing Premier League Clubs Association (PLCA) and has gifted the association with $10 million.

Chairman of the PLCA Edward Seaga said the SDF, a government agency, initially turned down the PLCA's request because of a misunderstanding.

"This was misunderstood and the SDF thought that the request was for the entire $28 million. On this basis, the application was turned down at first, but it has now been granted based on the amount of $10 million that was originally requested," said Seaga in a press release.

Grant rescue

Citing a $28 million shortfall in its budget at a press briefing 10 days ago, following the collapse of sponsor Cash Plus Limited, the PLCA has been rescued by two grants. The first came last week from the National Commercial Bank (NCB) Foundation with $8 million. The PLCA said the combined $18m will cover the PLCA's budget for the rest of the season which concludes on May 11. Seaga also said the PLCA had an additional $4 million in its coffers.

Half of the $10 million received from the SDF will be used as direct assistance for the 12 clubs and the other half will be applied to other expenses, said a release from the PLCA. The $8 million received from NCB will be used for prize money and to host the awards ceremony.

Budgetary gap closed

Prior to the start of the season in September, the PLCA and Cash Plus agreed to a $150-million, three-year deal. How-ever, Cash Plus, branded as an alternative investment scheme, was hit with a cease-and-desist order by the courts in December and its principal, Carlos Hill, was arrested on April 10 and later charged with fraud.

Seaga noted that with the combined $18 million, the budgetary gap of the PLCA has now been closed for the year.

"We are pleased that the SDF could support us in this period when a difficult situation arose by making a one-time grant," said Seaga.