Details: Termination agreement of Quess and East Bengal

East Bengal have now regained their sporting rights from the former investors ahead of the new season.

After a long-standing tussle, Quess Corporation Private Limited has transferred the club's sporting rights to East Bengal. Khel Now has accessed a copy of the termination agreement between Quess and East Bengal club.

As per the document, the Bengaluru-based company has acquired the remaining 30% stakes in the Quess East Bengal FC Private Limited for a sum of ₹1000. They state that this procurement is a result of the termination agreement finalized between the parties. Accordingly, this move makes QEBFC a wholly owned subsidiary of Quess.

This also provides East Bengal FC complete independence to seek new investors, as their former majority shareholders have now gained absolute control over the joint entity, which will be dissolved. Both parties had joined hands on July 5, 2018 to form QEBFC in a contract that was supposed to last for three years. However, several disagreements led to them parting ways at the end of May and the players contracted to the club were released through the activation of the ‘force majeure’ clause.

East Bengal’s nominee directors have resigned from the board of QEBFC after the company obtained the remaining 30% shares. It was apparently one of the terms mentioned in the termination agreement. One of the other key points disclosed in the said document is the fact that QEBFC generated a turnover of ₹4.24 crores in the financial year 2019-20. The date of termination is July 17, 2020.

Ever since Mohun Bagan’s merger with ATK and their subsequent entry into the Indian Super League, there has been an increasing sense of curiosity regarding their arch-rivals' admission to the top tier.

However, the whole fiasco with Quess restricted them from making any substantial move towards featuring in the topmost football league of the country. Regardless of the uncertainty prevailing over the ownership issue, the club made several new signings in the transfer window and have considerably strengthened their squad for the upcoming season.

In another crucial development, the Times of India has reported that Prasoon Mukherjee-led Universal Success Enterprises Limited have begun talks with an investment bank in line with the Kolkata giants’ attempts to find a new sponsor.

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It is a Singapore-based company and Mukherjee spoke to TOI about it saying, “We are regularly in touch with East Bengal and our team is looking into the legal aspects and other nuances of the arrangement. We will be happy to partner with a club like East Bengal. We are looking at an association for not less than five years and we are serious about it.”

Having gotten Quess off their back, East Bengal can now proceed more swiftly to attain induction into the ISL in the coming months.