Wednesday, 5 September 2018

Mohun Bagan inks ₹350 crore investment deal, but members not aware!

inks ₹350 crore investment deal, but members not aware!

The oldest football club in India, Mohun Bagan has reportedly inked a ₹350 crore investment deal with technology group Streamcast. However, some club members said they were not aware of the development till the new appeared in media.
Mohun Bagan has agreed to transfer 74% stake to the investor, who will pump in an initial ₹200 crore to rejuvenate the I-League club. Another ₹150 crore will be invested later.
Global technology group Streamcast has signed the 10-year deal to pump in ₹ 350 crores in the Mohun Bagan football club.
Mohun Bagan secretary Anjan Mitra had revealed the investment plans to the Goal.com. “We have been in talks with them for the past few months. We have submitted the required paperwork. There is some more paperwork left. I hope the other directors will co-operate. An agreement will be signed on September 9 and we will complete all paperwork by September 15. We will sign a MoU. 74% share will be handed over to them,” Mittra had told the football news website.
The club will not make a bid for an ISL slot as the bidding process starts on November 15. Streamcast, which has offices in USA, England, Ireland, Malta, Kenya, Dubai, Bahrain and India, will fund the club’s ISL bid.
However, the initiative to revive and uplift the club has also sparked a small controversy as some of the club members have alleged that they were not even informed about the development, which they have learnt from media.
Mitra, however, dismissed the allegations. “We have been in talks with them for the past few months. We have submitted the required paperwork. There is some more paperwork left. I hope the other directors will co-operate. An agreement will be signed on September 9and we will complete all paperwork by September 15. We will sign a MoU. 74% share will be handed over to them.
“I have spoken with other directors. We have been in talks for three months. We all agreed to hand over 74% (shares). There was a resolution passed in the executive committee to hand over 74% (shares) with immediate effect.”
Board member Srinjoy Bose has alleged that he was not aware of the new investment. “I am learning about the investors from the media. There has been no prior communication to us from the club about any investor. But if any investor has come forward they are welcome. We have been bringing sponsors to the club till date but if someone else has done the job then we have no problem. We all want the good of Mohun Bagan. But the club administration could have at least made a phone call and informed us of the developments,” Goal.com has quoted Bose as saying.
“If the company is sound enough then we have no problem but if not then I can only request him not to further jeopardize the club. Let us wait for the elections at least. The members will decide who will get the responsibility of getting sponsors on board. It is not new that if any investor comes on board the shareholders have to transfer a certain percentage of their stake. This is happening all over the world. It has become a common practice.
“We have been able to bring sponsors for many years. But whenever he takes the initiative to get sponsors some problem or the other crops up. We are ready for any kind of discussion with the secretary for the good of Mohun Bagan,” Bose added.
Former financial secretary Debasish Dutta also echoed Bose’s sentiments. “(Anjan Mitra) did call me and requested me for a document. He requested me for the accounts for the past four months. But during that communication with Mr Mitra, I was not informed of any potential investor or any details pertaining to it,” Debasish has told goal.com.
“I think that there’s a difference in what is being said and what is being done. He could have called a board meeting and discussed it at length. We have not received any proposal,” he concluded.
Bose and Dutta, however, had declined to share whether they were willing to transfer the shared to the new investors.

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