The bad news is piling up for the new management team of the French Rugby Federation. Successor to Bernard Laporte, the recently elected president, Florian Grill, announced shortly after taking office that he had inherited a worrying financial situation. With accounts in the red for 20 million euros over the next financial year (against 13 M€ announced) for annual revenues of 130 million. Far from the optimistic announcements of the previous team.
According to our information, the World Cup organized in France, and hoped for as a financial lifeline, will not make it possible to absorb this deficit. “We will be very far from the projections concerning direct income, reveals a source to us. The last provided for a profit, already revised downwards, of 40 million euros. But there will ultimately be almost nothing left for the coffers for the FFR once the local authorities hosting the World Cup and professional rugby, which has made great efforts in recent years, will have received their shares. It should be noted, however, that the local authorities have undertaken to inject the income from the World Cup into the development of infrastructures linked to rugby, which will contribute to the development of amateur rugby. But it is not cash that will benefit small clubs in the short term.
Very bad news for the base, all these volunteer leaders and amateur players from some 1,800 clubs, to whom the previous team had promised tens of millions of euros to allow the reception of new licensees expected en masse as after the 2007 World Cup.
The new management team is therefore now committed to finding other sources of income in order to return to the green and to be able to financially help the base of French rugby. The issue is clear. How can the FFR capitalize on this World Cup once it’s over? “By optimizing marketing revenue.” This means attracting new partners and advertisers and upgrading the contracts of those already present.
On this side, good news has already come to reassure the future. The Altrad group, partner of the XV of France jersey since 2018 and whose contract expires in 2024, officially committed again this Friday until 2028. For an amount significantly higher than the annual 8 million euros of the previous contract. A revaluation of around 25% according to our information.
Florian Grill and his team initially wanted to find a new sponsor, the Laporte-Altrad trial having tarnished the image of French rugby. But the complicated economic situation did not allow them to find a new actor. “None had the means to position themselves at the same height, or even 3 or 4 million euros less, for the shirt sponsor. Given the economic situation of the FFR and the amount proposed by the Altrad group, the renewal of the contract was preferred.
From January 2024, however, Altrad will not be the only sponsor present on the jersey of the XV of France. As revealed by the magazine Challenges, two historical partners of the FFR, Société Générale and Renault, will be present on the equipment of the players, the first in the back, the second on the shorts. For amounts, however, much lower than those of the Altrad group.