Quess Corp terminate agreement with East Bengal, give back sporting rights to the club

Quess Corp has officially ended their joint venture with East Bengal on Friday by executing a termination of the Share Subscription and Shareholder’s Agreement executed between Quess East Bengal FC (QEBFC), East Bengal Club and the Company.

This development follows months of speculation as to how the partnership between Quess and East Bengal would end. It also means that the sporting rights, needed to field a team in any recognised competition, has been handed back to the Red and Golds.

In a letter addressed to the Department of Corporate Services of the National Stock Exchange of India Limited, Quess Corp states, “Please note that the Board of Directors has considered, approved and noted execution of termination of the Share Subscription and Shareholder’s Agreement (“Agreement”) dated July 5, 2018, executed between Quess East Bengal FC Private Limited (“QEBFC”), East Bengal Club (“Club”) and the Company.”

The Bengaluru-based business service providing company had formed a joint venture (QEBFC) with East Bengal in July 2018, acquiring 70 per cent stake in the newly formed company to promote and operate the sporting teams, particularly cricket and football, on behalf of the club. This meant that the sporting rights of the club belonged to QEBFC and could not be transferred back to the club without the express permission of the Quess officials in the QEBFC board.

But with the termination of the contract, the company has decided to return the sporting rights back to East Bengal.

Quess Chairman Ajit Isaac has sent a letter addressing senior East Bengal official Debabrata (Nitu) Sarkar where he conveyed his regards and best wishes to the club for their upcoming endeavours.

The letter read, “My best wishes to you for the future and we will always be your well-wisher as the club moves into a new chapter."

The Red and Golds have been trying to get back their sporting rights from their investors for a while now. Without the sporting rights, the club would have neither been able to complete the club licensing process nor take part in any competition. 

With that particular issue sorted, the Kolkata-based club can start planning for the upcoming season.