ISL: East Bengal's Executive Committee calls joint venture with Shree Cements as one-sided
The Executive Committee of the club issued a press release voicing their stance on not signing the final agreement of the joint venture with investors Shree Cements
The ongoing tussle between East Bengal and Shree Cements is just increasing day by day. In a recent press release by the club's Executive Committee, they have declared that they do not wish to sign the final agreement of the joint venture that was signed between investors Shree Cements and the club.
The Executive Committee of the club met on Friday to discuss the differences in detail between the initial term sheet that was signed and the final agreement. After the meeting, the Executive Committee issued a press release and voiced their decision of not to continue with the agreed joint venture.
In the press release, the members described the agreement as an agreement that contains terms of giving the club away in a one-sided deal forever. They added that the agreement disrespects the club members and diminishes their rights, does not have the club's fundamental rights in its interest.
The press release also called all the club's well-wishers, supporters, and former players (football, cricket, hockey) to present their perspectives, and judge the situation on merit and support the century-old club.
Shree Cements came on as the primary investors of the club in 2020 and formalized the club's move to the Indian Super League. Both parties signed the agreement in September 2020 in the presence of current West Bengal chief minister Mamta Banerjee. According to the deal, Shree Cements hold 76% of the club stakes, while the club only has 24%.
Both parties started having differences over many issues, and the unpaid dues of a few transfers were one of them. The matter began to escalate after the Indian Super League season was over, and many reports suggested that both parties may not continue with the agreement.
The Sporting Rights and its assets are registered under the name of Shree Cements East Bengal Foundation as per the initial MoU, and AFC club licensing was done under the name of Shree Cement East Bengal Foundation last season. And even for the upcoming season, the sporting rights registrations are under the same name. All the intellectual properties have also been registered under the name of the new venture.
The internal problems at the club and now the press release by the Executive Committee has doomed a huge shadow of doubt on the club's participation in the upcoming Indian Super League.
Earlier, we reported that East Bengal has been given a one-week deadline by the Indian Football Association(IFA) to confirm their participation in the Calcutta Football League because of the ongoing tussle inside their club.