ISL New Season: Amid an ongoing deadlock between East Bengal and its investor Shree Cements, the latter has told the club that if they do not sign the final agreement then they have no option but to discontinue the affiliation.
“If the final settlement is not signed as per term sheet then the affiliation may have to be discontinued,” said a letter from Shree Cement as seen by Telegraph India.
The statement comes after a Shree Cements sent a letter to the club in response to East Bengal’s missive of May 25.
Shree cement said that East Bengal’s letter of May 25 did not list “a single discrepancy in the term sheet and the draft final agreement” sent by the investor on March 24.
“There has been no change in the term sheet, which was signed by the two parties on September 1 last year in the presence of chief minister Mamata Banerjee, and the draft final agreement. The club’s claim that there were anomalies in the final agreement doesn’t hold any ground. If so, why didn’t they specify the grey areas?” a representative of the investor told Telegraph India on Friday.
The investor has not given East Bengal any deadline to sign the agreement.
The ongoing tussle can derail the club’s prospect of participation in the upcoming ISL season. 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.
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’
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