MHR: with nearly 32 million euros injected over the last six seasons, Montpellier is “Altrad-dependent”

The Montpellier rugby club (MHR), “structurally” in deficit and chronically lacking in fans, owes its viability only to the millions of euros regularly injected by Mohed Altrad, its very majority shareholder, the regional audit chamber of Occitanie stressed on Tuesday.

The financial situation of the Société anonyme sportive professionnelle Montpellier Hérault Rugby (SASP MHR), which manages the professional branch of the club, "is characterized by a structural operating deficit", notes the regional audit office in a report covering the financial years 2017-2018 to 2022-2023.

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Despite an attractive pricing policy, the MHR, French champion in 2022, "has failed to increase its attendance rate", which was only 71% in 2022-2023 with an average of 11,095 spectators, while competitors such as Stade Rochelais and Stade Toulousain have an occupancy rate close to 100%.

"Debt write-offs to ensure cash flow of €31.8 million"

With ticket sales revenue "low significant” and salaries and social security contributions absorbing nearly 100% of turnover, “the viability and sustainability” of the professional club “are dependent, in addition to public funding”(including more than two million euros in annual subsidies), “contributions from its main shareholder”, the Altrad Participations group, owner of 95.97% of the shares in 2022, according to the 47-page report from the regional audit office.

Read also: Altrad on the identity of the MHR: “We don't have a 16th man in Montpellier. In terms of support, it doesn't exist”

Between 2017 and 2023, Altrad Participations, a holding company chaired by Mohed Altrad, head of an international group active in particular in the construction industry, has “agreed to waive debts to ensure cash flow of €31.8 million“, the club also benefiting from a sponsorship contract with the company “Altrad investment authority” of 29 million euros over the same period.

A relationship between the professional section and the amateur section to be clarified

While he handed over the general management of the MHR in 2023, Mohed Altrad, a French billionaire born in Syria, retained his position as chairman of the board of directors of the professional club, taking “a predominant place in the decision-making process”.

The general meeting is certainly made up of 28 shareholders, but “the Altrad Participations group holding 95.97% of the capital, the presence of its representative alone is sufficient to ratify the decisions", underlines the regional audit office.

Read also: "Mr. Altrad, stop insulting us", "the crisis at the MHR, he is the problem"… the torch is burning between the Montpellier city hall and the billionaire boss

In its report, the latter recommends clarifying the financial flows between the professional section (first team and training center) and the amateur part (rugby school) of the MHR, as well as providing more information on the use made of subsidies from local public authorities (metropolis and city of Montpellier, department and region).