Are East Bengal liable for players under long contracts after Quess' exit?

East Bengal were given a major boost in their preparations for the upcoming season after Quess Corp agreed to a mutual termination of a joint venture, Quess East Bengal FC (QEBFC), between the two entities.

The termination also meant the club re-obtained the sporting rights required to field a team in any recognised competition . This significant development lifted a huge cloud of doubt that was hanging over the club's immediate future, given that they were at an impasse with Quess for a few months over the issue.

However, along with the sporting rights, East Bengal have also taken on a set of responsibilities and liabilities.

When Quess and East Bengal entered into an initial three-year-long joint venture back in 2018, the agreement was that Quess would hold 70 per cent of stakes in the same and would take care of the operational cost of running the club. East Bengal, naturally, held only 30 per cent of the stakes.

As a result, Quess were responsible for the contracts executed between players and QEBFC during the two years the association lasted.

However, Quess decided to disinvest from QEBFC at the end of May 2020, ie the end of the 2019-20 season, and senior officials from the Bengaluru-based firm had stated that they will not be financially liable for any operation post that deadline.

"QEBFC, as we told, that the 31st May of this year is the last day, our contract with the club terminates. We have no financial liability post that. But meanwhile what we have been trying and that we also in the discussions with a couple of investment bankers to get a suitor so that we can divest. So we will be trying our best to do that. Hopefully, we'll get somebody to offload our share. And if nothing happens, but -- 31st May, post that, we have no financial liability. That is the last point," stated Quess Group CEO & Executive Director Subrata Nag back in February. 

Now, with the termination concluded, all the liabilities fall back to East Bengal. And that includes all contracts and clauses entered into with a player by QEBFC.

Goal understands that around 16 players have long term contracts with QEBFC that run till the end of the 2020-21 season and in some cases, beyond that. All the liabilities attached to these contracts now fall on the Red and Golds.

All payments related to the same, bonus and more are East Bengal's responsibility now. It must be noted it was Quess East Bengal who were handed a transfer ban and fined after irregularities in their approach to sign Sukhdev Singh from Minerva Punjab back in 2018. Though it was East Bengal who tried to sign him (just before Quess came on board), the liability fell on QEBFC back then.

In case, the players have any grievances related to non-fulfillment of their contractual terms, the club will have to answer for it in front of any official redressal forum. The termination date of QEBFC was July 17 and it is not clear who will cover the payments owed to players for the month of June and 17 days in July.

If the players have a grievance, they can only file a complaint against East Bengal with All India Football Federation (AIFF) or FIFA since Quess are no longer associated with the sport.

The club have already stated their intention to apply for the necessary club licensing procedures required to participate in national competitions for next season under the name of a new company - East Bengal Club Private Limited.

All existing liabilities of QEBFC will also now come under the aegis of East Bengal Club Private Limited.