FSDL threatens to terminate Mohammedan's ISL participation; club hopeful of resolving crisis

Kolkata: Indian Super League organisers Football Sports Development Limited (FSDL) has threatened to expel Mohammedan Sporting for the club's failure to meet the event's financial requirements.

FSDL warned Mohammedan Sporting after two of their investors contemplated pulling out over pending share transfer issues, but the Kolkata club remained hopeful of resolving the crisis at the earliest.

In a letter dated April 4 to Mohammedan Sporting, who finished last in their debut ISL season, the FSDL raised serious concerns over the investors' stance and the club's failure to provide a clear statement of outstanding dues, including payments to players, technical staff and vendors.

The FSDL has asked the club to respond by April 11 with a detailed plan to secure a replacement investor and submit a complete statement of outstanding dues.

Failure to comply, it warned, may lead to "termination of the club's participation in the ISL, in accordance with the terms of the 'Participation Agreement.

Mohammedan Sporting general secretary Ishtiaque Ahmed Raju, however, expressed hope that the matter would be resolved soon, saying the final agreement between the two investors is in the last stages.

"Share holding distribution is still under process and we will ask for some time from FSDL," Raju told PTI.

"Final agreement was getting ready and there are some legalities involved and Shrachi came midway through the season so could not be signed.

"It takes some time, it's not like you buy a cloth and wear it the same day. We are hopeful it would be sorted soon," he quipped.

The crisis emerged after both investors -- Gurugram-based Bunker Hill Sports and Kolkata's Shrachi Group -- expressed their frustration over not receiving their agreed shareholding despite investing substantial funds into the club.

"After three years of investment Deepak Singh (of Bunker Hill) also does not have any share, same with us after 18 months of investment with the club," Rahul Todi, chairman of Shrachi Group, told PTI.

"In the past also Bunker Hill had come out in open regarding this but it was settled but I'm not sure of the situation now. We have no locus standi in the club and have lost all hopes. The club's shares belong to two individuals of the club," Todi added.

Bunker Hill, a sports management company, took charge of the club in 2020 before Shrachi Sports bought half of their 61 per cent stake from them ahead of Mohammedan Sporting's ISL debut.

As per the agreement, both were supposed to hold equal stakes of 61 per cent, while the remaining 39 per cent stayed with the club.

After gaining promotion to the ISL last year, the Black Panthers finished at the bottom of the table with 13 points from 24 games.

In its letter, FSDL stated: "In relation to your failure to furnish the Bank Guarantee as required under the Participation Agreement, and the delay in executing the required definitive share subscription & shareholders agreement (SSSHA), we have recently received a communication dated 2nd April 2025 from Shrachi Sports, indicating their withdrawal due to differences with both MSCPL and BPL."

It further said: "Financial stability is one of the fundamental requirements for participation in the ISL, and the imminent withdrawal of your key investor raises serious concerns about the club's ability to meet the operational expenses for running the team."

FSDL has also taken strong objection to the club not disclosing the differences with Shrachi Sports during the playing phase of the ISL.

"It is disturbing that MSCPL failed to disclose any ongoing differences with Shrachi Sports during its active playing phase of the ISL, and this has come to light only after your team has failed to qualify for the playoffs.

"In the absence of transparency and timely disclosures, we are left to question whether this information was intentionally withheld till now since it would no longer affect your team's participation this season," FSDL wrote.

Mohammedan Sporting has been given seven days to submit a contingency plan to secure a replacement sponsor within 30 days, along with a statement of its outstanding dues for the 2024-25 season.

"Failure to meet these demands will leave us with no option but to consider further actions, including termination of your participation in the ISL, in accordance with the terms of the Participation Agreement," the letter stated.