The East Bengal executive Club committee continue to maintain their stance on not signing the final agreement of the Joint Venture which was to be formed between East Bengal SC and Shree Cement corporation.
However, now the deadlock between club and their investor Shree Cement show no positive signs of easing as the Executive Committee decided against signing the final agreement of the joint venture which was to be formed between the two entities.
East Bengal club officials decide not to comply with the agreement set out by principal sponsor Shree Cement
The differences between the initial term sheet which was signed earlier and the final agreement claimed by the club officials were discussed at length in the Executive club committee meeting on Friday, 16th July, with the club deciding to reach a standstill on the same.
However, the club members came to a conclusion that the terms of the final agreement and the initial agreement were not the same and decided on not signing the contract.
The Executive Committee issued a press release informing their decision following the conclusion of the meeting, “Under the leadership of the club president (Dr. Pranob Dasgupta), the Executive Committee has decided not to sign the final agreement which will force us to transfer the ownership, club ground, club tent, logo and the name of the club to the investors. The final agreement is insulting to the club members and they curtail the rights of the members.”
“We appeal to our fans to stand beside the club. Under the current circumstances, we have decided to discuss the matter with the former players of the club.”
Following the club’s principle investors for two seasons Quess Corp parting ways with the club in June 2020, Shree Cement became their new investor with the intervention of Bengal chief minister Mamata Banerjee, which facilitated East Bengal‘s participation in the Indian Super League (ISL).
Following that a joint venture named Shree Cement East Bengal Foundation was formed, in which the Shree Cements held 76 per cent stakes while the club had the remaining 24 per cent. However, a final binding agreement of the same is yet to be signed, as the club officials reject from doing so, not allowing all rights to be transferred to the sponsor.
A senior official from the management team of the joint venture has let known that they will decide the next course of action only after they receive an official letter from the club. Hari Mohan Bangur, Shree Cement’s owner had also mentioned in the past that no meeting with the officials will take place unless they comply with the agreement.
“First and foremost the investor has not got any official intimation from the club that it would not sign the final agreement. It has just put out a media release signed by the secretary. The investor’s stand is clear. Unless the final agreement is signed there would not be any further investment. We would also not transfer the sporting rights to the club unless the money pumped in last year is paid,” a senior representative of Shree Cement corp was found telling.
In such a situation, East Bengal‘s participation in the eighth edition of the Hero Indian Super League looks increasingly difficult.