Can East Bengal find a benefactor amidst ATK-Mohun Bagan merger?
The historic merger between India's oldest football club, Mohun Bagan, and two-time Indian Super League champion Atlético de Kolkata (ATK) has created ripples within the Indian footballing fraternity.
Mohun Bagan with its huge fan base is a marquee brand in the Bengali cultural landscape and its acquisition is a significant coup for Kolkata-based Sanjeev Goenka's RPSG Group.
While fans might have divided opinions over the move, the merger is a mutually beneficial arrangement for both sides. A financially stricken Mohun Bagan realised, to remain relevant it needed the financial backing of a sound investor and that happened to be Sanjeev Goenka's RPSG Group. More importantly, the merger has paved the way for Mohun Bagan’s entry into the next edition of the Indian Super League.
Meanwhile, the merger has put immense pressure on East Bengal officials to find an investor and make their case for the cash-rich league. As per reports, East Bengal’s principal investor, Quess Corp is likely to part ways with the club at the end of the season. Thus, a cloud of uncertainty is looming large over them as to how they will join the ISL.
A person who could come to rescue of the ailing club is Lakshmi Mittal. The steel baron has built the biggest steel empire in the world by acquiring steel plants across the globe that had a rich legacy but were faring poorly when he bought them. He used the same tactic in selecting a football club. Mittal picked up a stake in troubled English football team Queen Park Rangers in 2007 with hope of turning it around. The team entered the Premier League for two seasons before being relegated again in 2015. At present, Mittal owns 11 per cent stake in the club.
East Bengal too has lost its mojo. The team needs new leadership and inspiration to turnaround its fortunes. Mittal has the expertise and financial muscle to bring that change in East Bengal.
So why would Lakshmi Mittal be interested in acquiring East Bengal?
Since 2005, ArcelorMittal has been trying to enter the Indian steel market but none of his efforts fructified. After winning the bid to buy out bankrupt Essar Steel, he is close to his dream coming true. Essar Steel gives him a sizeable foothold in the strategic Indian market.
Reportedly, back in 2013, Mittal was also keen on entering the Indian sports market by buying a significant stake in Indian Premier League team Delhi Daredevils. But the deal never materialised.
East Bengal now presents a good opportunity for Mittal to plant his foot in the Indian sports scene, especially after his frustrating experience with buying a stake in Delhi Daredevils.
East Bengal, just like Mohun Bagan is a legacy brand with an impressive support base. Mittal born and brought up in Kolkata surely understands the magnitude of the brand.
From a business perspective, the East Bengal brand holds unlimited commercial potential. It needs a canny businessperson like Mittal to unlock it. Ultimately, the club has to be a self-sustaining entity capable of generating profits and East Bengal with its sizeable support base is well capable of becoming one of the biggest sporting brands in the country.
Ownership of the team would also help Mittal increase his brand equity in India. Therefore,its not just a emotional need but acquiring East Bengal makes sound business sense.
Now it remains to be seen whether East Bengal officials can persuade Lakshmi Mittal, to invest some of his estimated £13.6 billion fortune in the club.
Also read | Mohun Bagan-ATK merger: Heritage down the drain or canny move?