2024-08-20 14:08:36
According to the regional audit chamber of Occitanie, the Montpellier rugby team is very dependent on the majority shareholder. The MHR, “structurally” flawed and clearly lacking in flaws, is owed millions of euros by Mohed Altrad.
The financial situation of the Montpellier Hérault Rugby Professional Sports Limited Company (SASP MHR), which manages the professional department of the club, “characterized by a structural deficit”, noted the regional chamber of accounts in a report covering the years financial year 2017-2018 to 2022-2023.
Despite the attractive pricing policy, MHR, the French champion in 2022, “did not succeed in increasing its attendance rate”, which was only 71% in 2022-2023 with an average of 11,095 viewers. Competitors such as Stade Rochelais and Stade Toulouse have an occupancy rate close to 100%.
A 95.97% group ownership
With “insignificant” ticket revenues and salaries and social costs that take up almost 100% of turnover, the “viability and stability” of the professional team “reliable, in addition to public funding” (over two million euros in annual contribution) , “contributions from the main shareholder”, Altrad Participations group, owner of 95.97% of the shares in 2022, according to the 47 page report from the regional chamber of the account.
Between 2017 and 2023, Altrad Participations, the company held by Mohed Altrad, boss of an international group working mainly in construction, has “agreed to debt waivers to ensure cash flow to the tune of 31.8 million dollars europe”. The club also benefits from a sponsorship deal with the company “Altrad Investment Authority” worth 29 million euros at the same time.
Although he left the general management of the MHR in 2023, Mohed Altrad, a French billionaire born in Syria, retained his duties as chairman of the board of directors of the professional association. It is “an important place in the decision-making process”, according to the chamber of accounts.
Of course the general meeting is made up of 28 shareholders, but “the group Altrad Participation holds 95.97% of the capital, the mere presence of its representative is enough to approve the decisions”, revealed the body.
In his report, the latter recommended clarifying the financial flows between the professional part (first team and training center) and the sponsoring part (rugby school) of the MHR. But also to provide more information on the use of grants from local authorities (metropolis and city of Montpellier, department and region).
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