How to Tackle site wide link?
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If I understand your situation, you're talking about providing links to some other site from every page on your site. Is that correct? If so, yes, that's potentially a serious SEO problem. Too many links from one site to another can be considered link-stuffing. It's very possible that it's seen as a paid link.
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Ahmad,
With Google now taking into account where page elements are located (they can identify header, footer nav segments etc) it is now much more worthwhile getting a link in the editorial content of a website rather than just a simple sitewide footer link.
The search engines are now beginning to look at sidewides as a potential spammy signal and therefore I would say if you can get links within an editorial piece (which will likely reside on only 1 or 2 pages max on a site) then this will pass the most link juice / value ultimately.
Having said that I don't think sitewide's are dead exactly as they can help bolster the foundations of a link profile, I just wouldn't build an entire link strategy from these types of links, or at least this is where your partners are coming from.