The continuous disagreement between East Bengal SC and their investors Shree cement has been one of the major topics in Indian Football.
Indian Super League outfit East Bengal officials are in a continuous clash with their Investors. Both the parties are quarreling on the agreed contract terms. Shree Cement took over as the club’s new investors after Quess corp.
A term sheet was signed by the two parties back in September 2020. Where Shree Cement was announced as the investors. All of this happened in presence of Bengal’s Chief Minister Mamata Banerjee. but now the club is refusing to sign on the final term sheet. Club has claimed that the terms are different in the final agreement. However, Investors have totally declined obligations.
What are Term sheets and Final binding agreement
The purpose of a term sheet is to lay down the broad commercial terms between the parties and the broad legal terms between the parties and to bind the parties into negotiation with each other. whereas the Final binding agreement is the proper administrated contract. Which two parties sign to legally register the deal.
Can a Term sheet differ from the Final binding agreement
The officials of East Bengal have claimed that there are many differences between the term sheet and final agreement.
Minor changes might occur in the Final sheet because the term sheet is a small document. And on the other hand, the final agreement consists of 50 pages. “There can be differences to the extent that there may be items that are not covered in the term sheet are getting covered in the long-term agreement. A term sheet is a small document that would briefly touch on the detailed legal terms. But just because something was not mentioned in the term sheet, does not mean it cannot be mentioned in the final agreement,” said Aditya Shamlal, partner of a law firm
Is it still possible to walk out of this deal?
It is possible for both the parties to walk out of this deal. Even after signing the term sheets.
If it is a nonbinding term sheet then either party can walk out of the deal, but with legal implications. In this case, if Shree Cement have invested an amount, and East Bengal decides to walk out. Then the investors can take East Bengal to the court and demand the return of that amount.
What is happening in East Bengal right now
Most of the East Bengal players are free agents now, because most of there contracts have ended on May 31. And until this situation is sorted out between them, East Bengal won’t be able to re-sign them or buy new players as well.
A few representatives from East Bengal wants to to meet Shree Cement’s managing director. So that they can sort out the differences and come to a conclusion.
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