RP-Sanjiv Goenka Group has reached a deal to acquire a major stake in Mohun Bagan Football Club. The oldest football group will merge with the ATK Football Club. Mohun Bagan has a fan-base of more than 1.5 million. Both clubs will be merged into a single identity, in which RPSG Group will hold 80 percent stake.
“As much as we want the romance of the Maroon and Green jersey and its 130-year-old tradition to continue, there comes a time when romance almost invariably requires a partner named practicality. To usher into the new era of football, you need bigger investments and a corporate force to take it forward. This is undoubtedly a harsh and the bigger truth”, Swapan Sadhan Bose, chairman at Mohun Bagan Football Club said.
According to the agreement, Kolkata Games and Sports, an RPSG venture, which owns the ATK brand, will now be merged with Mohun Bagan Football Club Pvt Ltd to form a new company. The new entity, which is yet to be named, will come into effect by June 1 this year. This merged entity will own ATK Mohun Bagan. KGS has a paid-up capital of around Rs 227 crore and Mohun Bagan’s paid-up capital stands at Rs 1 lakh.
“One needs to look beyond West Bengal to India and then beyond India to compete in international sports events. While the merger will benefit both us as well as Mohun Bagan with greater exposure, we have plans to take the merged entity beyond India to international events”, Sanjiv Goenka, chairman at RPSG Group told Business Standard.
The new ATK Mohun Bagan is looking forward to compete in the Hero Indian Super League season 2020-21, along with other important competitions of the All India Football Federation calendar.
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