Bank of Mourad saves Toulon from Top 14's financial police
Yes, the Top 14 is a big-money business, but dark clerks of the FFR and LNR ensure clubs do not play fast and loose with the financial rules, writes James Harrington
If ever you needed proof that French rugby’s Top 14 was a high-stakes game for high rollers with money to burn, recent news has delivered it.
Last week, the new billionaire owner of Stade Francais, Germany’s Hans-Peter Wild, revealed he was willing to invest €30million of his own money over the next three seasons to right the struggling Stade ship.
The 75-year-old Capri-Sun king joked: “At my age, I’ve earned the right to have some fun.” But he also said that he wanted his investment to become one of the top three clubs in Europe.
And then, on Sunday, it was revealed that Toulon – that rabble-rousing red-and-black symbol of conspicuous Top 14 consumption – were days away from being busted down to the second-tier ProD2 by the dismal-sounding Direction Nationale d’Aide et de Contrôle de Gestion (DNACG), who had discovered a €2million hole in their finances.
Reports said €1.7million of that hole was a payment owed to sportswear manufacturer Puma, following a court ruling after the club ended a contract early in 2011.
In truth, the threat of relegation was snuffed out almost as soon as it began. On Tuesday, the day before the players were due to return for the first day of pre-season training and two months before the new season kicks off on August 19, the club’s millionaire president Mourad Boudjellal plugged the hole in return for a noticeably increased stake in the club. He now owes 93% of the shares, as opposed to the 51% he owned on Sunday.
Un accord entre l'Association et la SASP du RCT a été trouvé ce mardi. Le @RCTofficiel évoluera bien en TOP 14 ! https://t.co/gFFntPVpxx
— RCT – RC Toulon (@RCTofficiel) June 20, 2017
It proves that no-one, not even the comicbook enfant terrible of French rugby, makes the mistake of not taking the DNACG seriously.
It is the second time in a year that the club has been up before the DNACG beak. In August 2016, they were fined €100,000 for breaching the salary cap.
But who are they, these dark clerks of the DNACG?
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They are the financial gendarmes of the professional game in France, the thin red-tape line that keeps the financial peace in French rugby. It’s their job to ensure the 30 clubs of the Top 14 and ProD2 stay on the financial straight and narrow and do not break the salary cap.
They are funded by the FFR and the LNR, but independent and report only to the union.
Contrary to many opinions, understandable given frequent raids on southern hemisphere playing talent, these forensic accounting detectives wield serious power in France. No club takes the DNACG lightly.
And no club is sacrosanct. Earlier this year, they had their eyes firmly on Toulouse. Until changes at the top and a new source of revenue was enough to satisfy them that the club had stepped back from a financial precipice.
They can scrutinise the accounts of any professional club in France at any time, and punish miscreants with fines of up to €2million. They can – and have – busted clubs down several leagues. They can – and have – suspended player contracts while they made sure the clubs in question had the funds to pay them.
Ask Grenoble. In 2005, a season after they were relegated from the French top flight, Grenoble were ordered out of the professional leagues altogether after an audit of the club’s books revealed debts of €3.64million.
Ask Montauban. The Tarn-et-Garonne club finished the 2010 Top 14 season in 12th place – out of the relegation zone – but were busted down to the ProD2 after they were found to have breached budget rules. The club later filed for bankruptcy and returned to the amateur leagues. In 2014, Montauban returned to the ProD2 ranks.
Ask Bourgoin, Dax, Albi, Beziers, Carcassonne, Perpignan – all big French rugby names, all of whom have risked the wrath of the DNACG in recent seasons. Bourgoin, in fact, could be in trouble again. Federale 3 – the fifth, determinedly amateur, tier of French rugby – beckons if the 1997 European Challenge Cup winners cannot find the finances to keep going.
Before each season, clubs must present their provisional budgets – including TV rights income, sponsorship, ticket sales, regional cash etc. If there is a later discrepancy – say, not all the expected sponsorship money comes through, then the DNACG’s dark clerks take an interest. They will want to know how and why the club will fill the hole. Any club that cannot provide acceptable answers will face sanctions. No matter who they are
And, make no mistake, that €10million salary cap is enforced. That is not to say that clubs cannot be inventive with bonuses and image rights to boost players’ incomes: a sizeable portion of Dan Carter’s Racing 92 pay cheque comes in the form of image rights, for example, while Toulon have made determined and successful use of bonuses for years.
So, yes, there are ways and means to sidestep some of the rules some of time. But woe-betide any club that doesn’t keep its books in order. As Toulon very nearly found out this week.
Comments on RugbyPass
I hope Leinster’s proud of themselves fielding a poor team. They should decide if they’re all in or not.
1 Go to commentsJordie is looking at 16 games maximum if Leinster reach both the URC and champions cup finals. Thats not guaranteed. Some of those home URC fixtures will be cakewalks as well for Leinster and there is not much doing during the 6 nations in Feb and March so he can probably get a decent rest then. He will have to really put in it for maybe 7 or 8 games max. It should be a good move for both.
13 Go to commentsThe game was a quarter final, not a semi final. Barrett will be here for 6 months, he is no one's replacement at 13. That mantle will most likely ultimately go to Jamie Osborne, though Garry Ringrose has at least 4 more years in him. The long term problem position (in the next 3 years) for Leinster is tighthead prop, though there are a couple of prospects at schools level.
24 Go to commentsSo much for all that hype surrounding the ‘revival’ of Aussie rugby. The Blues were without the likes of regular starters Perofeta, Sullivan, Christie etc… This was a capitulation of the highest order by Australia’s finest. Joe Schmidt definitely has his work cut out for him.
2 Go to commentsYes they can ignore Sotutu. Like Akira Ioane plays OK at Super level but gets lost in tests. Too many chances too many failures.
2 Go to commentsA wallaby front-row of Bell, Blake and Tupou…now that would be hefty
1 Go to comments“But with an exceptional pass accuracy rating “ Which apart from Roigard is not a feature of any of the other 9s in NZ. Kind of basic for a Black 9 dont.you. think? Yet we keep seeing FC and TJ being rated ahead of him? Weird if it’s seen as vital to get our backline beating in your face defences.
1 Go to commentsThanks BeeMc! Looks like many teams need extra time to settle from the quadrennial northern migration. I think generally the quality of the Rugby has held up. Fiji has been fantastic and fun to watch
13 Go to commentsLets compare apples with apples. Lyon sent weak team the week before, but nobody raised an eyebrow. Give the South African teams a few years to build their depth, then you will be moaning that the teams are too strong.
41 Go to commentsDid footballs agents also perform the scout role at some time? I’m surprised more high profile players haven’t taken up the occupation, great way to remain in the game and use all that experience without really requiring a lot of specific expertise?
1 Go to commentsSuper rugby is struggling but that has little to do with sabbaticals. 1. Too many teams from Aust and NZ - should be 3 and 4 respectively, add in 2 from Japan, 1 possibly 2 from Argentina. 2. Inconsistent and poor refereeing, admittedly not restricted to Super rugby. Only one team was reffed at the breakdown in Reds v H’Landers match. Scrum penalty awarded in Canes v Drua when No 8 had the ball in the open with little defence nearby - ideal opportunity to play advantage. Coming back to Reds match - same scrum situation but ref played advantage - Landers made 10 yards and were penalised at the breakdown when the ref should have returned to scrum penalty. 3. Marketing is weak and losing ground to AFL and NRL. Playing 2 days compared with 4. 4. Scheduling is unattractive to family attendance. Have any franchises heard of Sundays 2pm?
13 Go to commentsAbsolutely..all they need is a chance in yhe playoffs and I bet all the other teams will be nervous…THEY KNOW HOW TO WIN IM THE PLAYOFFS..
2 Go to commentsI really hope he comes back and helps out with some coaching.
1 Go to commentsI think we are all just hoping that the Olympic 7s doesn’t suffer the same sad fate as the last RWC with the officials ruining the spectacle.
1 Go to commentsPersonally, I’ve lost the will to even be bothered about the RFU, the structure, the participants. It’s all a sham. I now simply enjoy getting a group of friends together to go and watch a few games a year in different locations (including Europe, the championship, etc). I feel extremely sorry for the real fans of these clubs who are constantly ignored by the RFU and other administrators. I feel especially sorry for the fans of clubs in the Championship who have had considerable central funding stripped away and are then expected to just take whatever the RFU put to them. Its all a sham, especially if the failed clubs are allowed to return.
10 Go to commentsI’m guessing Carl Hayman would have preferred to have stayed in NZ with benefit of hindsight. Up north there is the expectation to play twice as many games with far less ‘player management’ protocols that Paul is now criticising. Less playing through concussions means longer, healthier, careers. Carter used as the eg here by Paul, his sabbatical allowed him to play until age 37. OK its not an exact science but there is far more expectations on players who sign for Top 14 or Engl Prem clubs to get value for the huge salaries. NZR get alot wrong but keeping their best players in NZ rugby is not one of them. SA clubs are virtually devoid of their top players now, no thanks. They cant threaten the big teams in the Champions Cup, the squads have little depth. Cant see Canes/Chiefs struggling. Super has been great this year, fantastic high skill matches. Drua a fantastic addition and Jaguares will add another quality team eventually. Aus teams performing strongly and no doubt will benefit with the incentive of a Lions tour and a home RWC. Let Jordie enjoy his time with Leinster, it will allow the opportunity for another player to emerge at Canes in his absence.
13 Go to commentsLove that man, his way to despise angry little men is so funny ! 😂
6 Go to comments“South African franchises would be powerhouses if we had all our overseas based players back in situ. We would have the same unbeatable aura the Toulouses, Leinsters or Saracens of this world have had over the last decade or so.” Proof that Jake white does not understand the economics of the game in SA. Players earning abroad are not going to simply come back and represent the bulls. But they might if they have a springbok contract.
25 Go to commentsA lot of fans just joined in for the fun of it! We all admire O'Gara and what he has done for La Rochelle
6 Go to commentsThe RFU will find a way to mess this up as usual. My bet is there will be no promotion into the the Premiership, only relegation into National League One. Hopefully they won’t parachute failed clubs into the league at the expense of clubs who have battled for promotion.
10 Go to comments