“The FFR cannot be the only financial loser of the World Cup”: the truth of the figures according to Alexandre Martinez, who resigned from the FFR

Alexandre Martinez (blue suit) raises the alarm about certain FFR expenses. DDM – DDM

“My goal is not to settle scores but to shed light on the landscape. We don't tell everything and I have the big advantage of not being part of either list,” confides Alexandre Martinez, former interim president of the FFR. 

While the election for the presidency of the FFR opposing Florian Grill to Didier Codorniou will take place on October 19, Alexandre Martinez, former interim president in 2023, draws up an uncompromising assessment of the state of the finances of a sick institution.

For what reasons did you resign from your position at the FFR ?

My resignation from the Federal Bureau of the FFR is simply linked to my great weariness with current affairs and especially to the fact that I have been, for several months, obliged to justify myself with regard to my past actions, a situation that I personally could not bear more. It has been said that my resignation was linked to the report of the audit firm KPMG, which is totally false, especially since the latter does not say anything new.

Can you enlighten us on the exact situation of the FFR's equity ?

As of June 30, 2023, the Federation's equity, the date on which the new governance came into office, amounted to more than €50 million, which is confirmed by the KPMG report. Added to this is the value of the Marcoussis CNR, mortgaged in 2016, which has now been paid off and is estimated at more than €53 million.

These €50 million equity will be affected by the net result of June 30, 2024 and not the operating deficit of June 30, 2024. The cash position as of June 30, 2024, according to the KPMG study, is 69 million euros

Should the lifestyle of the Blues be questioned in light of the increase in its payroll??

I don't know if we should start with the Blues to reduce the FFR's expenses. I think we should start by not creating new expenses, this is simply called consistency in action. However, since June 30, 2023, subsidies to regional leagues – whose cumulative net income is largely positive – and the payroll have been significantly increased.
Regarding the French teams, I am convinced that we can optimize certain expenses. There was a form of mimicry between the other French teams and the great French team, generating increased costs. It is also obvious that our ambition for the 2023 World Cup contributed to increasing costs.

How do you explain the deficit of the GIE (Economic Interest Group) for the 2023 World Cup ?

The management of the GIE is the subject of an investigation by the Court of Auditors, which will publish its report shortly. The amount of the GIE deficit is currently estimated at around €35 ​​million and could impact the FFR accounts by a maximum of 55%, or €19.3 million, of which €3.3 million has already been provisioned as of June 30, 2023.

This €19.3 million should be compared to the €41 million operating deficit posted for the 2022-23 and 2023-24 financial years alone, which were affected by the GIE deficit. The closing of the accounts for these two financial years is the responsibility of the new governance.

Can the change of insurer (GMF for Axa, HDI Global SE and Mutuaide) have financial consequences ?

It is certain that the change in approach to insurance significantly changes the landscape: there was visibility of costs with the old contract for both small and large claims (permanent functional deficit threshold of 65%), visibility which, in my opinion, is no longer there. This is worrying because this new contract is mainly based on self-insurance. I am very afraid that this contract will only lead to an upward revision of the cost of insurance licenses borne by the clubs, the only way for the FFR to balance the accounts of the insurance fund.

How to recover the claim of Le Coq Sportif, approximately 5 million euros, which divides the Board of Directors?

I would like to point out that more than half of the claim is “covered” by a GAPD (guarantee on first demand) reducing the risk on it accordingly. Was it necessary to sue Le Coq Sportif to recover the remainder ? I am not convinced. In my opinion, there is a disproportion between the means used and the stakes. We must not forget that this former partner has supported us for several years and that other solutions such as spreading the debt can be studied.

To what extent does the Raoul Montbrand center in Pantin impact finances ?

This investment comes in the cost amortization plan as a relay to that of the Marcoussis National Rugby Center, whose associated loans have been fully settled since the 2022-2023 financial year. In terms of operations, this project should generate an additional cost of less than 1 million euros per year, or around 0.7% of the federal budget.

Here too, a clarification is necessary: ​​this project, the decision to launch which was shared, will not cost the FFR 36 million euros but around 28 million euros, if we deduct the subsidies and other revenues associated with this program. This project will allow for 70 years – and not 30 years as initially planned – to have three and a half rugby pitches in Pantin, an extremely rare commodity and one that is becoming increasingly rare in the Île-de-France region.

What measures do you recommend to improve finances ?

I will simply recall the recommendations of the KPMG report which, in essence, says that it is appropriate to reduce expenses and increase revenues. I will add to this the need to treat the deficit of the GIE for the benefit of the FFR (maximum impact €19.3 million, of which €3.3 million has already been provisioned as of June 30, 2023). The most important thing is to resolve this situation of the GIE to the advantage of the Federation, knowing that I would not understand if this World Cup, which was a real success in terms of organization and generated positive resources for most stakeholders, generated a single deficit for the FFR. This is unthinkable. The FFR cannot be the only financial loser of this World Cup.

The result obtained will make it possible to measure the efficiency of the future president's action. Regarding the decrease in expenses, I am surprised by their increases since June 30, 2023 through those of the payroll (+1.6 M€), subsidies granted to regional leagues (+3 M€) to bring them to nearly 20 M€. The evolution of revenues surprises me in view of the departure of two historical sponsors who received several million Euros from the FFR budget.

There is a lack of coherence between the discourse and the measures taken. Lack of coherence illustrated by the budget for the current 2024-2025 season, adopted at the Poitiers congress, not affected by the deficit of the GIE which forecasts an operating deficit of 18 million euros, a record for a financial year limited to the activities of the FFR only.

However, it is entirely possible, if the question of the GIE is resolved harmoniously, to find balance at the end of the current financial year. My goal is not to settle scores but to shed light on the landscape. We do not say everything and I have the great advantage of not being part of either list.