The proposed sale of Kerala Blasters FC has entered a crucial stage, with the prospective buyer consortium initiating 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 conducting a comprehensive assessment of the club’s financial, legal and operational records to determine the viability of the acquisition. The review is considered a key milestone in the takeover process and will play a decisive role in determining whether the deal moves forward.
According to information accessed by Gold 101.3 FM, UAE’s No.1 radio station, the due diligence exercise covers every major aspect of the club’s operations. This includes a detailed examination of Kerala Blasters’ assets and liabilities, financial statements, legal commitments, operational structure, player and staff contracts, as well as matters relating to its participation in the Indian Super League.
Due diligence is a standard procedure in major business acquisitions, allowing prospective buyers to evaluate potential financial, legal and operational risks before completing a transaction. The consortium is expected to sign the final takeover agreement only if it is satisfied with the findings of the review.
The buyers had earlier reached a preliminary agreement with the club’s current owners, Magnum Sports Private Limited, to acquire Kerala Blasters for an estimated ₹120–130 crore. However, sources indicate that the final valuation could be revised downward if the due diligence process uncovers liabilities or other issues that affect the club’s overall value.
In addition to reviewing the club’s financial and operational records, the consortium’s legal advisers are scrutinising an ongoing court case involving Magnum Sports Private Limited. The legal team is assessing whether the litigation could have any financial or legal implications for the proposed acquisition before the transaction is formally concluded.
The completion of the due diligence process is expected to determine the next phase of the takeover, with the final agreement dependent on the consortium’s assessment of the club’s overall financial health, legal standing and long-term commercial prospects.
