Home France France Bordeaux reach agreement with investors four days before hearing to appeal relegation third division #France

France Bordeaux reach agreement with investors four days before hearing to appeal relegation third division #France

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Crisis-hit Bordeaux reach a crucial agreement with investors just four days before their hearing to appeal the decision to relegate the club to the French third division as they look to end their financial nightmare

  • Bordeaux were relegated to the third decision due to their financial situation
  • The French side have appealed the decision with the hearing set for July 5
  • The club have reached an agreement with investors King Street and Fortress

Bordeaux have reached a crucial agreement with their American investors King Street and Fortress before their appearance to appeal their relegation to the French third division.

The six-time French champions finished rock bottom of Ligue 1 last season so were already set to play in Ligue 2 but their vulnerable financial situation forced the DNCG – France’s football watchdog – to relegate them another division to National. 

The decision was met by ‘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 set to take place on July 5. 

Bordeaux have reached an agreement with their investors before their relegation appeal 

The six-time French champions finished bottom of Ligue 1 last term, racking up just 31 points

Crucially, four days before the club is set to stand before the appeal committee, Bordeaux have struck an agreement with their creditors, according RMC Sport.

‘It was a roller coaster but it’s signed,’ a source told the French publication. ‘We responded point by point and in a precise manner to the motivations formulated by the DNCG.’

New owner Gerard Lopez was left desperately seeking help from investors to pump money into the club

New owner Gerard Lopez was left desperately seeking help from investors to pump money into the club

The club were understood to have a deficit of around €40million (£34m), leaving new owner Gerard Lopez desperately seeking help from investors to pump money into the club. 

The club’s directors have now sent their case to the financial watchdog, who will decide the fate of the club on Tuesday – to stay in National due to the risk of bankruptcy or a second chance in Ligue 2, which starts the new season on July 31. 

The case reportedly outlines an investment of €10m (£8.6m) from the shareholder in the form of a capital increase and a reduction of half of the debt, which stands at €52m (£45m) in total.

In addition, the €8.3m (£7.1m) windfall generated from Monaco’s sale of Aurelien Tchouameni to Real Madrid will remain at Bordeaux and not be used to pay off the debt, while a compulsory line of credit of €14m (£12m) has been opened to cover the cost of transfer this summer.

The Girondins also hope to recuperate around €40m from the sales of midfielder Junior Onana and attackers Hwang Ui-jo, Sekou Mara and Alberth Elis.

If Bordeaux does 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.

In addition to the arrival of Polish goalkeeper Rafal Straczek and emergence of defenders Yoann Barbet and Vital Nsimba at the club, Lopez plans to recruit nine players. 

The club's financial woes have left them facing relegation to the French third division

The club’s financial woes have left them facing relegation to the French third division

Bordeaux racked up just 31 points in the top flight last season, scoring 52 and conceding a league-high total of 91 goals. It was the most goals any team had conceded in the top five European leagues.

The DNCG tried to relegate Bordeaux to Ligue 1 last season but the club kept 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 due to suspicious player registration and agent activity, with their offices raided by police.

Bordeaux finished with 31 points last season and let in 91 goals - the most in all top five leagues

Bordeaux finished with 31 points last season and let in 91 goals – the most in all top five leagues

They will spend a first season outside the top flight since 1991-92, and their plight represents an incredible fall from grace for a club of this size. They have won 22 trophies, regularly competed in the Europa League and reached the Champions League quarter-finals as recently as 2009-10 – the year after they last won Ligue 1.

Bordeaux were sold to French businessman Lopez last year after being placed into administration.

Lopez – the former president of the Lotus Formula One team – has fought hard to keep the team afloat by cutting down their huge wage budget.

Samuel Kalu was sent to Watford in January while Hatem Ben Arfa and Youssouf Sabaly were both released on a free transfers. Former Arsenal defender Laurent Koscielny – one of the club’s highest earners – has also departed for free.

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