Quess are expected to end association with East Bengal on May 31…
When Quess came on board as investors of East Bengal at the start of the 2018-19 season, there was a lot of speculation as to whether the club would be looking to play in the Indian Super League (ISL).
Two years down the line, the association between Quess and East Bengal is set to come to an end. Though it has not materialised so far, Goal can confirm that one of the conditions in the agreement between the two parties was that East Bengal would play in the ISL within three seasons, ie, at least by the end of the 2020-21 season.
Important to note that the contract states that the club should play in the ISL or the equalent top divison league formed by AIFF after merging ISL and I-League.
The Kolkata club had entered into a Joint Venture with the Bengaluru-based company in 2018 to run their footballing activities. Quess Corp, who came in as an investor, owns 70 per cent of the new entity Quess East Bengal FC while East Bengal club had the remaining 30 per cent.
One of the termination clauses in the contract signed by Quess and East Bengal reads – “In the event that the club fails to participate in the ISL or league formed by the combination of ISL and I-League or the equivalent of the highest level of football league competition played in India, as recognised by the AIFF, AFC and FIFA, within three years of the closing date (of the agreement), the investor (Quess) will have the right to terminate this agreement and any other agreement executed with East Bengal.”
However, the association has now set to come to an end within two years and there is no clarity on East Bengal playing in the ISL any time soon.
On May 28, Quess held their Q4 2020 earnings conference call which was attended by Ajit Issac (Chairman and Managing Director), Krishna Suraj Moraje (Group CEO & Executive Director) and other top officials.
During the meeting, Moraje stated, “We will conclude the termination of our partnership with QEBFC as of end of May, and we will make sure there are no further liability on that front.”
Goal had reported earlier that Quess was looking to divest shares of East Bengal to minimise losses and strike an early exit.