Girondins of Bordeaux.  What the FFF appeal committee criticized the club for

Girondins of Bordeaux. What the FFF appeal committee criticized the club for

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“Sud Ouest” was able to obtain the notified decision of the DNCG Appeal Commission. Here are the highlights.

1 Over the 2021-2022 financial year

The DNCG Appeal Commission of the FFF criticizes Jogo Bonito, Gérard Lopez’s company and owner of the group, for not having kept the commitments made before it when validating the takeover of the club on July 12, 2021. It indicates that the buyer had undertaken to consolidate equity a year later at least at the same level as when a year ago, that is to say less than 29 million euros.

The net result for the 2021-2022 season (negative of 42 million euros), with a sporting result below forecasts (20th against 8th) and 11 million euros in capital gain on the sale of players less than hoped for, further degraded equity.

The Commission calculates that its own funds fall to minus 58 million euros

To return to their 2021 commitment despite everything, the leaders were betting on two points: the taking into account of the 2021-2022 result of the profit-sharing and the training allowance on the transfer of Aurélien Tchouaméni (7.8 million euros). euros net) and the transfer of half of the debt due to Fortress and King Street (i.e. 26.5 million euros) to JB Dynamie, a subsidiary of Jogo Bonito Group and “grandmother” of SASP Girondins .

The commission judges that the profit-sharing on the transfer of Tchouaméni is included in the 2022-23 balance sheet and therefore cannot be taken into account

The Appeal Board rejected both aspects. It judges that the profit-sharing on the transfer of Tchouaméni, approved in June, is included in the 2022-2023 balance sheet (the money will be paid on July 15) and therefore cannot be taken into account. And she questions the legal aspect of the documents presented for the mounting of the debt recovery. She also points out that this does not modify the guarantee on the debt (linked to the club). Without these two elements, the Commission calculates that its own funds fall to minus 58 million euros.

To respond and get into the nails of its commitment during the conciliation at the CNOSF, the club is now discussing with King Street and Fortress for the outright abandonment of part of the debt. The other possibility is the assumption of liability for part of it and 100% guarantees by Jogo Bonito or another third party.

The Appeals Committee also justifies its decision by two aggravating circumstances in its view: the capital increase of 10 million euros promised by Jogo Bonito in July was not effective until June 2022, and provisions for industrial tribunal disputes and the forthcoming social plan which seem to him to be undervalued.

2 For fiscal year 2022-2023

This is the other aspect studied by the DNCG: the viability of the 2022-2023 budget and the cash flow plan.

Refusing to take into account the postponement of payments due to the Métropole, not voted on during the hearing (it was on Thursday), it relies on the estimate of the DNCG in the first instance: the latter judged the forecasts of the leaders (with in particular a second place synonymous with climbing) optimistic on ticketing and sponsorship and quantify the financing needs at 40 million euros in addition to the parachute linked to the descent (7 million euros) and the payment in August by the LFP of 8.75 million euros for CVC’s acquisition of a stake in the future commercial company.

Regarding the expected sales of players, the Commission considers that the credit line of 14 million presented as a guarantee is not admissible

To cope, the Girondins are relying on the new capital increase of 10 million euros, voted on June 30 under the resolutory condition (that is to say which will be canceled if the club is not maintained in L2 ), the money of Aurélien Tchouaméni (acquired) and on the promise of 21 million capital gains on transfers by the end of September (excluding Tchouaméni, but including the incentive on the transfer of Jules Koundé).

For the first point, the Appeal Board judges that the capital increase was not carried out on the day of the hearing, one of the legal assessments denounced by Gérard Lopez and his entourage as erroneous. Regarding the expected player sales, the Commission considers that the credit line of 14 million presented as a guarantee is not admissible, due to the club’s indebtedness and the letter sent to the clubs requesting a “first hand” transfer guarantee. and coming from a “leading financial institution”.

To respond to the CNOSF, Gérard Lopez announced on Saturday that he had placed 14 million euros in escrow as a cash guarantee.

The 2022-2023 plan of the Girondins also mentions a capital increase of 30 million euros in June 2023 to make it possible to put the equity back afloat again. The Appeals Commission points out that it has no further information concerning the operation.

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