The King Street investment fund announced on Thursday its withdrawal from the Girondins, plunging the club into crisis. The FCGB is now placed under the protection of the Commercial Court. While waiting for a director to be appointed and responsible for finding a buyer, Frédéric Longuépée remains chairman.
Via a press release sent this Thursday at 6 p.m., the Girondins de Bordeaux announced the withdrawal of their American owner King Street. A decision that ‘by the economic crisis. The club finds itself, in fact, placed under the protection of the Bordeaux Commercial Court. But what will happen now?
When is King Street going to leave?
Despite this announcement, the American investment fund King Street remains at the head of the club. But an administrator will be appointed very quickly to manage the Girondins file. King Street will then be permanently ejected. The new administrator will be responsible for finding the right buyer based on the sums offered and the profile of the future buyer. This will then be the time for negotiations. Even if the announcement surprised everyone, several buyers are already in the process of setting up files to align themselves.
How much does the club cost?
The club costs nothing anymore. There will be “only” the debt of 60 million euros to manage. But a buyer can get the club back for 40 or 50 million euros, while still having a debt of 10 or 20 million. For the various investors who have been interested in the club since the American takeover, it is almost good news to have an entry fee without going through the King Street box.
But beware: legally, the club is not yet on sale. The ad hoc mandate mentioned in the press release is a negotiation procedure between King Street and its creditors (the Fortress investment fund) which had lent 40 million euros. This procedure should allow King Street to minimize its losses, negotiate the repayment rates and the duration. Then the club will be placed in receivership or liquidation and there the club will be on sale. This is where the court will look at the profiles of the buyers, if there are buyers.
Can the Girondins be relegated administratively?
For the moment, no worries about a possible administrative relegation. Throughout this procedure, the club ensures that salaries will be paid. In training in Lorient to prepare a decisive match for the maintenance (Sunday, 3 pm), the players learned the news with concern. A meeting was held Thursday evening with Alain Roche and the staff. The players were reassured at the end of the season and Jean-Louis Gasset wants to stay focused on the maintenance operation. With five days left, the Girondins are 16th and are under the threat of a descent in Ligue 2.
Who are the potential buyers?
Just hours after the surprise press release from the Girondins, businessman Bruno Fiévet expressed interest in taking over the club. In September, the 51-year-old businessman had already made a takeover offer of around 70 million euros, but King Street had turned it down. “Concretely, we will discuss with the court to find out under what conditions the club is for sale,” he said Thursday evening on RMC. Other buyout proposals are expected to follow.