East Bengal vs Indian Arrows

Can East Bengal get back participation rights to play I-League by default?

Quess and East Bengal are all set to end their association, with the Bengaluru-based business service provider looking to pull out of their investment deal with the Kolkata-based club.

The joint venture between Quess and East Bengal, enforced at the beginning of the 2018-19 season, had seen the former hold 70 per cent of the stakes while the latter was given 30 per cent of the new entity called Quess East Bengal. Quess were expected to provide the finances for the operations of the club as part of the agreement, with the new entity enjoying the sporting rights of the club.

The agreement signed by the two parties state that " the club shall transfer the exclusive right of and/or enjoyment of contracts, licenses, permissions and facilities pertaining to its Club Sporting Activity to the Company ." (Company is Quess East Bengal here).

Now Quess have reiterated that they will have no financial liability post May 31, 2020, with respect to East Bengal.

On May 28, Quess Group CEO & Executive Director Krishna Suraj Moraje said, "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."

While that is all well and good, there is a lack of clarity with respect to the sporting rights currently enjoyed by Quess East Bengal. Whether Quess holds on to the rights or seeks a compensation from East Bengal is unclear.

East Bengal need the sporting rights back in their name in order to field a team in the I-League for next season. However, it is possible that East Bengal will get back the rights by default if the termination of the agreement is because of no fault of the club.

The clause in the agreement reads - " It is clarified that the rights transferred under this clause shall revert automatically to the Club in the event of termination of the Agreement, for no fault of the Club, without any further act or deed."

But if the agreement is not actually terminated and Quess continues to hold on to the rights, East Bengal might need to strike an exit deal with them in order to get back the rights. An interesting few days ahead for the club.

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