ISL New Season – East Bengal vs Shree Cement: The ongoing tussle between East Bengal officials and investor Shree Cement can derail the club’s participation in the new season of Indian Super League (ISL). Such is the scenario that investors have sent in a blunt message to the club officials that ‘no further investments’ will be made in the team for the forthcoming season until the final binding agreement is signed between the parties.
The investors are very peeved with the East Bengal officials for not signing the final agreement after agreeing on the sheet last year. According to a report by The Telegraph, Shree Cement officials have also decided to make their stand clear the ISL authorities.
‘We will not take any step forward unless the final agreement is signed. Unless the final agreement is signed no further investment would be done. We will make our stand clear to the ISL authorities soon,” a Shree Cement official was quoted by The Telegraph.
ISL New Season – East Bengal vs Shree Cement: East Bengal Club president on the other hand has written a ‘personal letter’ to the investors seeking appointment with them.
“The club president has personally written a letter to Mr. Hari Mohan Bangur where he has stated that he is surprised by the media reports which have claimed that East Bengal will not participate in the ISL season. He has asked for appointment with him. We want to resolved this issue amicably” senior East Bengal official Debabrata Sarkar was quoted by Bengali newspapers on Tuesday.
East Bengal vs Shree Cement – What exactly is the issue?
After initiation from West Bengal Chief Minister Mamata Banerjee, Shree Cement decided to invest in the club in June 2020. Shree Cement came on board as East Bengal’s new investors and the move facilitated their entry to the ISL.
A term sheet was agreed between the two parties and a joint venture named Shree Cement East Bengal Foundation was formed. This JV was suppose to be the commercial vehicle for the club, where all commercial and operations rights of the club were parked. According to the understanding the cement giants held 76 per cent stakes while the club had 24 in the JV.
Even though the term sheet has been signed, a final binding agreement of the deal is still pending. The East Bengal officials haven’t signed on the dotted line alleging that the terms of final binding agreement and term sheet differs. The new management, on the other hand, claims that there are no discrepancies in the final binding agreement. They has also asked the officials to come out in open and clarify the points which they feel are different from those mentioned in the term sheet.
This has led to a situation where investors had such a blunt message to the club – that no further investments, till the agreement is signed.
East Bengal vs Shree Cement – Where the issue is heading, way forward?
East Bengal has now reached out to the investors by sending an official letter to them. The meeting between the two can resolve the issues which can end the ongoing deadlock. But for now the message from the investor is clear, ‘no further investments – till the final agreement’