Kerala Blasters sale talks move ahead as buyer consortium begins 'due diligence'

The proposed sale of Kerala Blasters FC has entered a crucial phase, with the prospective buyer consortium beginning an extensive due diligence process before finalising the takeover of the Indian Super League (ISL) club.

The consortium, which includes a Kerala-born expatriate investor, is carrying out a comprehensive review of the club's financial, legal and operational records to assess the viability of the acquisition.

Due diligence is a standard procedure undertaken before major business transactions. As part of the exercise, the consortium is examining the club's assets and liabilities, legal obligations, operational structure, player and staff contracts, and matters related to the Indian Super League.

The takeover agreement will be signed only if the consortium is satisfied with the findings of the review.

The buyers had earlier reached a preliminary agreement with the current owners, Magnum Sports Private Limited, to acquire the club for around ₹120-130 crore. However, the final valuation could be revised downward depending on the outcome of the due diligence process.

The consortium's legal advisers are also scrutinising an ongoing court case involving Magnum Sports Private Limited. They are assessing whether the litigation could have any legal or financial implications for the proposed acquisition before the deal is concluded.