March 3 – US private equity investor King Street has put French Ligue 1 side Girondins de Bordeaux up for sale as the club’s finances come under increasing strain due to the Covid-19 pandemic.
Bordeaux CEO Frédéric Longuépée recently informed the club’s employees of a plan to safeguard jobs in the wake of an €80 million hole in the club’s accounts. But even before the health crisis Bordeaux were reporting losses year on year, with pre-tax losses of €61.4 million in the three seasons leading up to the 2018/19 season.
In 2018, King Street acquired a majority stake as part of a €95 million takeover with US investor Joseph DaGrosa’s GACP Sports, before becoming the sole owner in 2019.
Last year, €27.5 million was injected into the club to meet the requirements of the LFP’s financial regulations, but the club’s financial situation has not improved with matchday revenue erased and the TV rights flop that has decimated French football.
Filing for bankruptcy could be an alternative avenue. It would come with the triple advantage of paying off the debt, cleaning up the accounts to make the club more attractive to buyers, and would not lead to enforcing relegation on the club, according to a decision by the FFF executive committee on November 12,2020. However, it would requires a bankruptcy filing and recovery plan before the start of the 2021/22 season.
Contact the writer of this story, Samindra Kunti, at moc.l1713887221labto1713887221ofdlr1713887221owedi1713887221sni@o1713887221fni1713887221