Crisis-hit Bordeaux reach a crucial deal with investors just four days before their hearing to appeal the decision to relegate the club to France’s third tier as they seek to end their financial nightmare
- Bordeaux were relegated to the third decision due to their financial situation
- The French side appealed the decision with the hearing set for July 5
- The club have reached an agreement with investors King Street and Fortress
Bordeaux reached a crucial agreement with its American investors King Street and Fortress before their appearance to appeal their relegation to the French third division.
The six-time French champions finished bottom of Ligue 1 last season and were therefore already set to play in Ligue 2, but their vulnerable financial situation forced the DNCG – the watchdog of French football – to relegate them. in another division in National.
The decision was met with “dismay” from the club’s hierarchy, who called it a “brutal” decision, and the club launched an appeal with the hearing before the DNCG committee due to take place on July 5.
Bordeaux have reached an agreement with their investors before their relegation appeal
The six-time French champion finished last in Ligue 1 last season, with just 31 points.
Basically, four days before the club is due to appear before the appeal committee, Bordeaux have reached an agreement with their creditors, according to RMC Sports.
“It was a roller coaster but it’s signed,” a source told the French publication. “We responded point by point and precisely to the motivations formulated by the DNCG.
New owner Gerard Lopez has desperately sought help from investors to pump money into the club
The club are said to be running a deficit of around €40m (£34m), leaving new owner Gerard Lopez desperate for the help of investors to pump money into the club.
The leaders of the club have now transmitted their file to the financial policeman, who will decide on Tuesday the fate of the club – to remain in National because of the risk of bankruptcy or a second chance in Ligue 2, which starts the new season on July 31. .
The deal is said to feature a €10m (£8.6m) investment from the shareholder in the form of a capital increase and halving of debt, which amounts to €52m (£45m) in total.
Additionally, the €8.3m (£7.1m) windfall generated by Monaco’s sale of Aurélien Tchouameni to Real Madrid will remain in Bordeaux and will not be used to repay debt, while A compulsory €14m (£12m) credit line has been opened to cover transfer costs this summer.
The Girondins also hope to recover around €40m from the sales of midfielder Junior Onana and forwards Hwang Ui-jo, Sekou Mara and Alberth Elis.
If Bordeaux manage to clinch a place in Ligue 2 for next season, the club will have a budget of €40m (£34m) with €11m (£9.5m) for wages.
Besides the arrival of Polish goalkeeper Rafal Straczek and the emergence of defenders Yoann Barbet and Vital Nsimba at the club, Lopez plans to sign nine players.
The club’s financial difficulties left it facing relegation to the French Third Division
Bordeaux picked up just 31 points in the top flight last season, scoring 52 and conceding a league-high 91 goals. It was the most goals a team had conceded in Europe’s top five leagues.
The DNCG tried to relegate Bordeaux to Ligue 1 last season but the club retained their place after a fierce battle.
It comes as St Etienne, who were also relegated to Ligue 2 last season, are being investigated by French authorities over suspicious player registration and agent activity, with their offices being searched by the police.
Bordeaux finished with 31 points last season and scored 91 goals – the most in the top five leagues
They will be spending their first season outside the top flight since 1991-92, and their fate represents an incredible fall from grace for a club of this size. They have won 22 trophies, made regular appearances in the Europa League and reached the Champions League quarter-finals as recently as 2009-10 – the year after their last Ligue 1 victory.
Bordeaux was sold to French businessman Lopez last year after being placed in administration.
Lopez – the former Lotus Formula One team president – has fought to keep the team afloat by slashing its huge salary budget.
Samuel Kalu was sent to Watford in January while Hatem Ben Arfa and Youssouf Sabaly were both released on free transfers. Former Arsenal defender Laurent Koscielny – one of the club’s highest earners – also left for free.