Top 14: Bourgoin could go belly-up after collapse of potential rescue package

The future existence of Top 14 side Bourgoin has been thrown into doubt following the collapse of a potential rescue package.

Cash strapped Bourgoin – who were runners up in last season’s European Challenge Cup – are now facing up the very real possibility of bankruptcy unless they can quickly find new financial backers.

The club is presently without a president, unable to call upon the services of 14 players due their licences being ‘blocked’ by the DNACG and rooted to the foot of Top 14 without a single point from their opening two games.

The player licences are currently being withheld because the DNACG – the league’s financial watchdog – does not believe the club can balance its books after putting forward a proposed €10.2m budget for the 2009/10 season.

This follows last season’s flirtation with relegation (on financial grounds) after the DNACG discovered a €2m budget shortfall.

It had been widely expected that the company GL Events would buy a majority stake in the club and make a huge cash injection, paving the way for a merger with ProD2 side Lyon OU, but that scenario collapsed dramatically on Wednesday when GL Events announced it was pulling out due the findings of an internal audit at Bourgoin.

“Given the importance of the risk involved the directors of GL Events, in agreement with the shareholders of Lyon OU, have taken the views of the audit findings and decided not to present the case for saving Bourgoin rugby club to its board of directors meeting on Thursday August 27^th,” read the group’s statement.

“In effect, the audit findings reveal a financial fragility of the club which compromised the proposed project to create one big club for the Rhônalpin region.  The audit revealed a need for funding that far exceeds the required amounts raised to keep the club afloat and ensure its future development,” it added, referring to the initially held belief that there was merely a €1.3m shortfall.

Then, with reference to a previously failed merger attempt last season, the statement continued: “These difficulties could have been resolved if the governing bodies of Bourgoin had agreed last spring to respond positively to the proposed merger with Lyon OU for the 2009/10 season, with one merged budget and a project which had the backing of the Ligue Nationale de Rugby.”

GL Events went on to clarify they had thoroughly investigated the potential rescue package “at the request of the leaders of Bourgoin in an emergency”, and stressed they had done so with “the strong desire to succeed”. The statement said it had withdrawn “reluctantly” but would continue its investment and financial support of Lyon OU, of which it is a majority shareholder.

Olivier Ginon, president of GL Events, had been tipped to become the new president of Bourgoin following the proposed deal – which would have seen them invest €1.3m to acquire a 56% share in the cash-strapped Isère club - with the merger between Bourgoin and Lyon OU expected to follow for next season. But now the rescue deal has collapsed and Bourgoin’s very existence is a major concern.

The LNR has cleared them to carry on playing their Top 14 fixtures for the time being, but without a serious injection of cash (and quickly) it is difficult to see how they can survive. They have already been denied the use of 14 players – who either joined or signed contract extensions in the summer – and the DNACG will simply not allow them to keep on operating without sufficient monetary guarantees.

Senior figures within Lyon OU have, meanwhile, expressed relief at the collapse of the deal, and any potential merger.

“It is the end and it reassures everyone,” said Lyon OU president Yvan Patet. “This reinforces very clearly the policy of Lyon OU. It is important for us to quickly get promotion to Top 14,” he added.

Head coach Raphael Saint-Andre, brother of Toulon’s Philippe Saint-Andre, was equally relieved. “It’s reassuring to know that Lyon OU is here to stay, it remains a separate entity and is responsible for its own fate,” he said after Wednesday’s announcement. “It is now up to us to show that it was the right decision by making the best possible season,” added Saint-Andre.

Bourgoin, for their part, have bowed to fight on, with the club releasing its own statement following the failed rescue package.

“We will continue to invest and fight together for the club and its traditional values are well represented,” it read. “Faced with the decision of the company GL Events not to invest in Bourgoin we are addressing the current situation of the club.”

It said the players remained focused on the forthcoming matches against Biarritz (on Saturday) and Racing-Metro 92 (on Wednesday), although that must be wishful thinking given the current uncertainty over their own contracts and future careers.

The club has also been asked to fill the vacant president’s post as soon as possible. Previous incumbent Rene Flamand stepped down on the eve of the new season to pave the way for the hoped for rescue deal, with committee member Jean-Louis Regairaz filling the breach on a temporary basis at present.

He will now oversee the way forward and said “we will try to best manage the situation by organizing several meetings with the steering committee members and partners of this issue”.

Those meetings began late on Wednesday afternoon and look set to continue through the weekend as Bourgoin somehow seek a way forward.

In a separate development ProD2 side Pau have had three player licences cleared by the DNACG, although four others still remain blocked.

As with Bourgoin, the DNACG had blocked them due to concerns over the club’s budget, with a reported €200,000 budget shortfall. But on Wednesday it confirmed that three summer signings had now been granted permission to play in Saturday’s season opener, with hooker Maignien Emmanuel (signed from Bourg-en-Bresse), South African lock Evan Botha (Aurillac) and Fijian winger Akuila Nawerecagi (Lons-le-Saunier) all given the green light.

Apparently Pau need a further €150,000 to secure the licences for fellow signings Loic Charlon (Stade Francais), English flanker Phil Davies (Harlequins), Tongan winger Sione Lavaka and youngster Giordano (on his first professional contract).