Girondins de Bordeaux: the specter of cessation of payment looms for the month of July

Girondins de Bordeaux: the specter of cessation of payment looms for the month of July

First there was a reminder of the situation: the club must find 40 million euros by …

First there was a reminder of the situation: the club must find 40 million euros between now and the appeal, at the beginning of July, to plug the hole of the past season. It seems utopian to believe that only player sales in the next two or three weeks will be enough.

Gérard Lopez’s plan therefore consists of injecting ten million (his relatives assure that proof of this re-engagement was provided on Tuesday), sell for just over twenty million and to obtain a gesture from the investment funds Fortress and King Street, to whom the club owes 52 million euros. Thomas Jacquemier confirmed what everyone sensed: without an agreement with its creditors, or a buyer who would arrive by miracle, the FCGB will not survive at the professional level.

An impossible recovery

Following the takeover last summer, the Bordeaux treasury is calibrated to last for the season just before, so until the end of June. As it stands, the club will not be able to pay the charges (salaries, fees, suppliers, etc.) that will arise in July. Gérard Lopez has neither the means nor the desire to ensure the lifestyle of the Girondins alone. American funds don’t intend to either, and that’s not their role.

Gérard Lopez’s holding company, Jogo Bonito, has already agreed to recover half of the debt to improve the club’s debt ratio. This is not enough for the DNCG. It has not yet transmitted the exact reasons for its decision, but the representatives of the Girondins had an informal exchange with its president, Jean-Marc Mickeler, on Tuesday. If no additional common ground is found with Fortress and King Street, the demotion to National 1 will be approved.

All receipts (TV rights, sponsorship, player sales, etc.) will collapse and cessation of payments, and therefore bankruptcy, will be inevitable. Bordeaux will fall back to the level of its reserve, in National 3, because the legal time will make it almost impossible to present a recovery solution before the start of the National championship (August 12).

On the same subject

This time, the Girondins de Bordeaux are on the edge of nothingness

Unsurprisingly, the plan presented by Gérard Lopez was challenged by the DNCG on Tuesday. Downgraded to National 1, the Girondins will appeal and the equation remains the same: guarantee some 40 million euros in cash by early July

Dramatic consequences

The liquidation of this part of the regional heritage would have dramatic consequences: dismissal of all the employees (approximately 260 in total, administrative and sportsmen combined), extinction of the economic (subcontracting, etc.) and social activity generated by the club , departure from the Matmut Atlantique which would find itself without a tenant. Jogo Bonito has guaranteed the rent for the stadium (4.9 million euros per year) but could she really take ?

As for Fortress and King Street, they would write off their 52 million euros (but have no doubt already provisioned their losses) and would damage their reputation with their investors. Gérard Lopez hopes to convince them to give up the profit-sharing on the sales of Aurélien Tchouaméni (approximately 8.5 million euros) and Jules Koundé. Even to provide a letter of intent in which they would firmly commit to covering a possible lack of transfer revenue. Long is the road.

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