The National Directorate of Management Control (DNCG), the financial watchdog of French football, imposed payroll checks and a recruitment ban on the Bastia club (Ligue 2) this Wednesday. The DNCG also decided on “relegation (to National 1) as a precaution at the end of the current sporting season” for the Corsican club, currently 11th in Ligue 2.
As for US Orléans, which plays in National 1, the football financial police also asked for checks on payrolls and “transfer payments”. The other clubs that auditioned, Nice and Stade de Reims (Ligue 1), as well as several Ligue 2 clubs, have all received the green light from the DNCG for the 2024-2025 season.
Two weeks ago, the DNCG imposed a payroll audit and hiring ban on the OL after an OL hearing on its financial situation, as well as “precautionary demotion” if Lyon’s financial situation does not improve. In total, the deficit of French football clubs was 250 million euros for the 2023-2024 season, as revealed by the body’s president Jean-Marc Mickeler.
What are the key financial challenges currently facing French football clubs?
Interview: An Insight into the Financial Oversight of French Football
Published by Time.news
Editor: Welcome, and thank you for joining us today. We’re here to discuss the recent actions taken by the National Directorate of Management Control (DNCG) regarding financial oversight in French football. Joining us is Dr. Emilie Laurent, a sports finance expert. Dr. Laurent, can you start by explaining the recent payroll checks and recruitment ban imposed on the Bastia club?
Dr. Laurent: Absolutely, thank you for having me. The DNCG’s decision to impose payroll checks and a recruitment ban on Bastia is a significant step in maintaining financial discipline within Ligue 2 football. This is particularly important given that Bastia is currently sitting in 11th place, which indicates that while they are not in immediate danger, the DNCG is acting proactively. The precautionary relegation to National 1 at the end of the current season highlights the seriousness of their financial situation.
Editor: It’s eye-opening indeed. Could you elaborate on what this means for the club and for the broader context of French football, especially considering the reported 250 million euros deficit across clubs?
Dr. Laurent: The implications for Bastia are substantial. Not only does this hamper their ability to strengthen the squad through new signings, but it also puts pressure on their financial management to stabilize in order to avoid relegation to a lower division. For the broader context, the staggering deficit of 250 million euros for the 2023-2024 season points to a systemic financial issue plaguing many clubs. This raises concerns over sustainability and the financial health of the league as a whole, and it suggests that there may need to be stricter financial regulations implemented.
Editor: Speaking of stricter regulations, we’ve seen similar measures applied to US Orléans and even Olympique Lyonnais in past weeks. What do you think is driving the DNCG’s increased scrutiny, and what precedent does this set for other clubs?
Dr. Laurent: The surge in financial scrutiny from the DNCG reflects a growing concern about the long-term viability of clubs operating with significant deficits. By auditing payrolls and “transfer payments,” the DNCG is ensuring that clubs adhere to financial fair play regulations. This sets a clear precedent – clubs that do not align with sound financial practices face serious repercussions, such as recruitment bans and potential relegation. This is particularly pressing for those with large fan bases and expectations, like Lyon, reminding all clubs of the importance of sustainable financial management.
Editor: It sounds like financial stability will be a top priority moving forward. For club executives or management teams, what practical advice would you give to ensure compliance and avoid the pitfalls seen with clubs like Bastia?
Dr. Laurent: My primary advice would be to embrace transparency in financial practices. Clubs should perform regular financial audits to monitor their fiscal health. Additionally, they need to develop long-term financial strategies rather than focusing solely on short-term success, which can lead to accumulating debt. Investing in youth programs and sustainable talent development can also mitigate risks associated with high transfer fees. Lastly, engaging in proper financial education for management staff will be crucial in navigating the complexities of modern football finance.
Editor: Thank you, Dr. Laurent, for these valuable insights. It’s clear that the financial landscape of French football is complex and demands strategic planning. We appreciate your expertise on the matter.
Dr. Laurent: Thank you for having me; it’s been a pleasure discussing such an important topic for the future of football in France.
Keywords: DNCG, payroll checks, recruitment ban, Bastia football club, financial oversight, French football, OL, financial fair play, Ligue 2, sustainability in football.
