Contract clauses, TV rights, financial impact… What does the MHR risk if it drops to Pro D2 ?

President Mohed Altrad in full discussion with his director of rugby Bernard Laporte. Midi Libre – SYLVIE CAMBON

Montpellier Hérault Rugby is playing for its survival in the Top 14 this Sunday, June 16, 6 p.m., against Grenoble, during the access match. A setback would mean a descent into Pro D2 and the consequences that go with it.

At the beginning of April, Mohed Altrad was clear: "Evolving in Pro D2, I don't accept it, I can't imagine it not". However, the disaster scenario can take place. Sunday, around 8 p.m., Montpellier will know. And even if we refuse to talk about it internally, the club necessarily considers all scenarios. The consequences of a descent to the second division, a first in 21 years, have already been listed.

First, a positive point. No player on the MHR squad has a descent clause in their contract. If some wish to leave the club, an amicable agreement must be found. Lenni Nouchi, Arthur Vincent, Marco Tauleigne or Tyler Duguid, who recently extended their contract, will therefore always be contractually linked to Montpellier next summer, regardless of the outcome of the season on Sunday evening.

From 5 to 3 million from the League

Concerning the differences between the Top 14 and the Pro D2, one is notable: the absence of Salary Cap. In the elite, it is capped at 10.7 million euros, giving headaches to the various sporting directors. The problem will not arise in the event of a descent. Management is free to have the payroll it wants.

Also read: Patrice Collazo on the MHR situation: "We didn't have a strike picket Monday morning when we arrived"

However, the cash flow will be less significant. This season, the MHR received around 5 million euros from the National Rugby League. Included in this 5 million are TV rights and a whole bunch of payments linked to the final ranking, Jiff, stadium funds, playing on Sunday evening (100 000  euros of bonuses per match) or the quality of the training center.

If the club plays in Pro D2, the total League check drops to around 3 million euros. The share of TV rights drops from a little over 2 million euros to less than a million euros. The share of European cups (550,000 euros in the Champions Cup, 370,000 in Challenge) is reduced to 200,000 euros, even if the club does not ;rsquo;evolves more in these competitions. 

However, a club which is relegated to Pro D2 receives a downgrade bonus of 600,000 euros. 

These LNR revenues represent approximately 20% of the clubs' overall budget, knowing that Montpellier's budget is estimated at 27 million euros.

𝐀𝐜𝐜𝐞𝐬𝐬 𝐌𝐚𝐭𝐜𝐡 : Informations et billetterie

Nos Cistes disputeront l'Access Match Top 14 ce dimanche 16 juin à 18H00 sur le terrain du FC Grenoble Rugby.

toutes les infos https://t.co/sBF6kR4BzB#TEAMMHR #EnRouteVersGrenoble pic.twitter.com/jCXJswdTO0

— Montpellier Rugby (@MHR_officiel) June 9, 2024

Ticketing, partnership…

Then there will be the issue of revenue. MHR, like many clubs, regularly ends its financial year in deficit, forcing the president Mohed Altrad to make up for the losses (between 4 and 5 million euros per year). Next year, in the event of promotion to the second division, ticket sales and subscriptions could be negatively impacted. Especially since the matches are played on Thursday and Friday evenings.

Read also: Only a few tickets left for the MHR play-off match: how the fans' travel to Grenoble is organized ?

Finally, the most important part, the partnership, representing about 50% of the budget. The previous management boasted of having carried out major work in this sector, notably attracting flourishing companies such as Septeo or Hectare. But in recent weeks, some partners have reportedly been put off by the internal movements within the club.

A victory on Sunday against Grenoble would therefore be a lesser evil for the MHR's finances. But whatever the case, the work remains colossal to clean them up, knowing that Montpellier is still in talks with the town hall for the purchase of the GGL Stadium.

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