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West Bengal CM Mamata Banerjee mediate and resolve East Bengal vs Shree Cement deadlock - All you need to know about the saga

12:25 BST 25/08/2021
Mamata Banerjee, East Bengal
East Bengal and Shree Cement had turned to West Bengal Chief Minister as the last resort to solve the ongoing agreement deadlock...

The agreement deadlock between East Bengal and their investor Shree Cement finally got resolved on Wednesday as both parties confirmed the Red and Golds' participation in ISL season eight.

The Chief Minister of West Bengal, Mamata Banerjee, had called upon a meeting with East Bengal officials and Shree Cement on Wednesday at the West Bengal state secretariat building to mediate and solve the ongoing deadlock between the two parties.

On Monday, Shree Cement had sent a letter to the Chief Minister and mentioned that they are unwilling to continue their association with the club as their investor and are reportedly ready to give back the sporting rights to the club.

In turn, addressing the issue, Mamata Banerjee slammed Shree Cement and expressed her displeasure over this sudden turn of events. She has volunteered to mediate between the two parties to find an amicable solution whereby the final agreement is signed which will ensure the Red and Golds continue to participate in the Indian Super League (ISL).

What is the issue between East Bengal and Shree Cement? 

After Quess Corp parted ways with East Bengal in June 2020 after being the club's investor for two seasons, Shree Cement came on board as their new investor which facilitated the club's move to the Indian Super League (ISL). They then proceeded to establish a joint venture named Shree Cement East Bengal Foundation, in which the cement giants held 76 per cent stakes while the club had 24.

After Shree Cement's arrival, a term sheet was signed by both parties in September 2020 in the presence of West Bengal Chief Minister Mamata Banerjee who had played an important role in bringing the company on board as the club's new investor.

Based on the term sheet, the club’s sporting rights as well all its assets and properties (including intellectual) were reportedly transferred to the newly formed joint venture between the two parties. Even though the term sheet was signed, the final binding agreement of the deal is yet to be signed by the officials despite multiple reminders.

Shree Cement had already sent a revised version of the final agreement to the club as well as to the West Bengal Chief Minister on August 16 but the officials did not agree to sign.  After multiple reminders, the investors informed the state Chief Minister about their inclination to end the deal on August 23.

Although the company informed the Chief Minister about their decision, they did not send an official letter to the club. Chief Minister Mamata Banerjee then called upon both parties to mediate and on Wednesday it was officially announced that the differences have been resolved and the club will participate in ISL season 8.

Further reading

AIFF hand transfer ban to East Bengal

How can East Bengal remove their transfer ban

West Bengal CMdispleased after SC decides to end association with EB