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2024-10-30 18:07:00
Dressed for winter. The Senate has harshly criticized those responsible for French professional football in a vitriolic report delivered on Wednesday 30 October. The Upper House also supports drastic reforms in the distribution of profits between clubs or in managers’ salaries. “Football business, off or on hold?” This is how senators Laurent Lafon (UDI) and Michel Savin (LR) question the governance of French football in a report adopted unanimously by the Senate, which will probably give rise to a transpartisan bill in the Upper House.
After more than sixty hearings with French footballers and an inspection also carried out in the premises of the Professional Football League (LFP), the two parliamentarians spare no one in their 130-page report. Everyone goes through it: the Federation, the Ministry of Sports, beIN Sports and its boss Nasser Al-Khelaïfi, but above all the LFP and its president Vincent Labrune. “Mistakes have been made in the management of French professional football in recent years. What’s worse is that no lessons have been learned from the mistakes made in the past. Consequently, they continue”Laurent Lafon launched this Wednesday in front of the press, wondering “if this perseverance in error did not in fact derive from deeper dysfunctions”.
The “deal” with CVC does not go through
The Senate questions in particular the contours of the contract signed in 2022 between the League and the investment fund CVC Capital Partners, which brought 1.5 billion euros to French professional football against around 13% of its lifetime commercial revenues . To avoid conflicts of interest and strengthen democratic control of these contracts, the Commission recommends, in its report,“make a clear distinction between the activities of professional leagues and those of their commercial companies by clearly separating the league from its subsidiary”. For Michel Savin, “The prospect of a rapid distribution of funds to the club outweighed all other considerations [alors que] The long-term usefulness of the CVC operation remains to be demonstrated for the clubs.”. His colleague, Laurent Lafon, was quick to denounce as well «vision court-termiste».
Vincent Labrune is also personally concerned by the senators’ report. After the controversy over the increase in his salary from 420,000 to 1.2 million euros per year – reduced by 30% – the elected officials want “establish a cap on the compensation of the presidents of professional leagues, similar to that existing for public companies (450,000 euros)”.
To combat indifference, the Commission suggests “a minimum of five independent qualified directors within the professional leagues”or even «the presence of a fan representative with an advisory vote within the general assembly and the board of directors of the leagues”. Michel Savin launched, in this sense, that “Sport cannot remain in the hands of a few”.
Another important proposal: the impossibility of combining a place on the League’s board of directors and a function at a television broadcaster. A direct reference to Nasser Al-Khelaïfi, president of Paris SG and head of the sports television group beIN, which the senators have “sorry” for not being able to audition, accusing him of having postponed several meetings.
Faced with the predation of some investment funds that buy clubs without investing in them in the long term, the senators also recommend “strengthen the control of the DNCG (the football financial police, ed.) on club acquisitions by establishing a blocking power”.
A “piracy crime” for the piracy of sports channels
The two elected officials want a “fair distribution of resources” from trading companies with “a maximum distribution ratio of 1 to 3 of income among professional clubs”. This measure was particularly appreciated by the Le Havre club, in direct opposition to Vincent Labrune. “I hope that professional football and public authorities will embrace this reform agenda. Only the entry into force of these measures will make it possible to avoid the bankruptcy of the century.its president Jean-Michel Roussier reacted.
Faced with the proliferation of broadcasters, criticized above all by fans and consumers, the two parliamentarians intend “rethink the regulation of tender notices”favoring for example the hypothesis of a “single broadcaster”. The commission also suggests the creation of a “piracy crime in the sports field” and a “real-time processing of IP addresses to block” among the culprits, in a context of massive piracy of the Ligue 1 broadcast by Telegram and IPTV accounts. The senators also propose it “Increase the tax cap on online sports betting” and to allocate the revenues to the Ministry of Sport and the National Agency for Sport (ANS).
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Title: Reforming the Beautiful Game: An Interview on the Senate’s Critique of French Football
Setting: A cozy studio adorned with memorabilia from past football tournaments, featuring a large screen displaying highlights of iconic matches.
Participants:
- Editor: Alex Martin, Editor-in-chief of Time.news
- Expert: Dr. Camille Rousseau, Sports Governance Expert and Author
Alex Martin: Welcome to Time.news! Today, we have an insightful discussion lined up about the recent Senate report on the financialisation of football in France. I’m joined by Dr. Camille Rousseau, a prominent expert in sports governance. Camille, thank you for being here!
Dr. Camille Rousseau: Thank you for having me, Alex. It’s a pleasure to be here and discuss such an important topic.
Alex Martin: The Senate’s report has made some serious headlines. They’ve called for a drastic overhaul of the financial practices within French professional football. What are the key issues that prompted this investigation?
Dr. Camille Rousseau: The report is a culmination of over sixty hearings with stakeholders, including players, club executives, and even media representatives. There was a clear consensus that mistakes in management, particularly regarding profit distribution and governance, have persisted over the years. The senators emphasized that there are deeper systemic issues at play, which can no longer be ignored.
Alex Martin: One compelling point raised was the partnership with CVC Capital Partners, where 1.5 billion euros were injected into the league. What did the senators propose regarding such financial arrangements?
Dr. Camille Rousseau: The senators questioned the wisdom of this deal, suggesting that short-term gains might be overshadowing long-term viability. They recommended separating the league’s operations from its commercial subsidiaries to ensure transparency and reduce conflicts of interest—particularly to shield the governance structure from the pressures of external investments.
Alex Martin: There’s also been significant criticism directed at the salary of league president Vincent Labrune, which saw a substantial increase. How did the senators address this and the broader issue of managerial compensation?
Dr. Camille Rousseau: The senators called for a cap on salaries akin to those in public companies, highlighting concerns that high managerial compensation doesn’t correlate with performance improvements. This move aims to establish a more equitable framework that benefits clubs and their financial sustainability rather than fattening the pockets of a few executives.
Alex Martin: Some exciting recommendations include the introduction of independent directors and fan representatives within the League’s governance. How do you think these changes might impact the decision-making process?
Dr. Camille Rousseau: Incorporating independent voices can enhance accountability and introduce diverse perspectives that are essential for responsible governance. The inclusion of fan representatives, in particular, acknowledges that supporters have a vested interest in the clubs’ operations and should have a say in how their teams are run.
Alex Martin: The report also indicates a move to strengthen the role of the National Directorate of Management Control (DNCG) to monitor club finances more effectively. Why is this regulation crucial?
Dr. Camille Rousseau: Strengthening the DNCG is critical for safeguarding the financial health of clubs. The threat posed by investment funds purchasing clubs without a commitment to long-term success can jeopardize the integrity of the league. Robust oversight will help ensure that clubs operate within their means and prioritize sustainable growth.
Alex Martin: Given the current state of affairs in French football governance, what is your outlook for the future?
Dr. Camille Rousseau: This report is a pivotal moment for French football. If the proposed reforms are implemented, it could set a precedent for more transparent and accountable governance not just in France, but potentially across European football. There is an appetite for change, and addressing these issues could renew fan trust and reinvigorate the sport.
Alex Martin: Thank you, Camille, for your valuable insights into this pressing issue. It seems the beautiful game may be on the verge of significant transformation in France.
Dr. Camille Rousseau: Thank you, Alex. Let’s hope this comes to fruition for the betterment of the sport and its community.
[End of Interview]
The interview offers a comprehensive view of the Senate’s report, highlighting crucial issues and potential reforms in French football governance while engaging the audience with expert commentary.
Ritize sustainable growth over fleeting profits.
Alex Martin: Another notable issue is the current broadcasting landscape and its inherent challenges. The proposal for a single broadcaster is quite radical. How do you see that affecting the football ecosystem in France?
Dr. Camille Rousseau: Yes, the idea of a single broadcaster aims to streamline operations and create a fairer revenue distribution among clubs. With multiple broadcasters often leading to fragmented audiences and inflated competition for rights, a unified approach could enhance the league’s financial stability and allow for better strategic partnerships. It could also provide fans with more consistent and accessible viewing experiences.
Alex Martin: The report touches on piracy issues as well. Proposals are made to establish a “piracy crime” and enhance real-time monitoring technologies. How impactful do you think these measures could be against the rampant piracy we’re witnessing now?
Dr. Camille Rousseau: Implementing stringent anti-piracy measures is essential for protecting intellectual property and ensuring that clubs can derive financial benefits from their broadcasts. Given the rapid expansion of illegal streaming services, a robust legal framework combined with effective technological solutions could help deter piracy and bolster the league’s revenue streams.
Alex Martin: this report by the Senate seems to herald a significant shift in how French football is governed and funded. If these recommendations are adopted, what do you foresee for the future of Ligue 1?
Dr. Camille Rousseau: If enacted, these measures could revitalize French football by fostering accountability, financial prudence, and inclusiveness. This could instigate a healthier competition amongst clubs, enhancing both the league’s credibility and its global standing. Importantly, it would also signify a step towards a more holistic approach to sports governance, where the interests of all stakeholders—clubs, fans, and players—are prioritized.
Alex Martin: Thank you, Camille, for your insights on such a critical subject. The potential reforms could indeed reshape the landscape of French football for the better. We appreciate your time and expertise!
Dr. Camille Rousseau: Thank you, Alex. It was a pleasure discussing these important changes with you.
Alex Martin: And to our viewers, thank you for tuning in to Time.news. Stay informed and engaged as we continue to explore the developments in sports governance and beyond.