Quess looking to divest East Bengal’s shares

It is an open secret that Quess Corp Limited are all set to round up its relationship with East Bengal at the end of the ongoing season. The technological and business services provider has now confirmed that it will pull out of the Kolkata club by May 31, 2020.

In fact, Quess are looking for an early exit, provided they can find a party who can buy out their shares. If they can’t do the same, Quess will exit the club at the end of May as planned earlier.

During Quess’ Q3 earnings conference call held on January 30, Group CEO & Executive Director Subrata Nag made it clear that the technological and business services provider will have no financial liability after May 31, 2020, with Quess East Bengal Football Club (QEBFC). 

“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 Nag. 

He also mentioned that the termination of the contract is mutual.

“Yes, yes, we have already intimated, and they (club) also accepted. So mutual exit (will happen) by May 2020, when the current season ends. So our current exposure with East Bengal will be up to that time. But we are, at the same time, we have been trying to exit, if possible, before that time line also, but the latest will be May 31.”

With rivals Mohun Bagan already partnering up with ATK in order to play in the Indian Super League from next season, the pressure will be on the Red and Golds to bring in a sponsor and make the jump to the ISL.

The Bengaluru-based Quess has incurred losses of around INR 3-4 crores during the third quarter of the ongoing financial year in spite of seeing an increase in sponsorship revenue. 

“So there are some sponsorship revenue that just kicked in, but most of the things will come when the season starts and the ticket sales and other things. And overall loss, I think, this quarter, which is just not much. I think it is around between INR 2 crores to INR 3 crores to INR 4 crores in that range. (Maybe) INR 3 crores to INR 4 crores,” informed Nag. 

East Bengal is also going through a tumultuous phase on the pitch, as the Kolkata giants sit ninth on the table with 11 points from 10 matches.