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French may allow some clubs to list on stock market
France - 25 September, 2006
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The French government could be moving toward legislation that will allow clubs to list on the stock market if they present a strong business plan.
According to Reuters, the proposal will be presented to the cabinet today and follows pressure from the European Commission to lift a ban that prevented French professional sports clubs from selling shares, which it says violates EU treaties.
Sports Minister Jean-Francois Lamour said he was, at first, opposed to allowing clubs to list, but he felt the proposed legislation would protect investors from the problems found in countries such as Italy, Germany or Britain.
"The big change is the safeguard for shareholders," he told LCI news television, adding that only two or three French clubs at most were likely to want to list.
He said clubs would only be allowed to list if they could show they were capable of operating as businesses and did not depend entirely on income from playing results.
Lamour said clubs hoping to list would have to show a strong balance sheet and business plan and would have to be in a position to afford modern stadium complexes.
"Not just old-style stadiums, but stadiums with modern structures, business seating, conference centres, restaurants and commercial centres that bring in revenues and mean investors aren't entirely exposed to the ups and downs of sport," he said.
Champions Olympique Lyon, winners of five titles in a row, has expressed repeated interest in listing the club. That could allow it to compete with renowned clubs such as Barcelona or AC Milan.
According to Reuters, the proposal will be presented to the cabinet today and follows pressure from the European Commission to lift a ban that prevented French professional sports clubs from selling shares, which it says violates EU treaties.
Sports Minister Jean-Francois Lamour said he was, at first, opposed to allowing clubs to list, but he felt the proposed legislation would protect investors from the problems found in countries such as Italy, Germany or Britain.
"The big change is the safeguard for shareholders," he told LCI news television, adding that only two or three French clubs at most were likely to want to list.
He said clubs would only be allowed to list if they could show they were capable of operating as businesses and did not depend entirely on income from playing results.
Lamour said clubs hoping to list would have to show a strong balance sheet and business plan and would have to be in a position to afford modern stadium complexes.
"Not just old-style stadiums, but stadiums with modern structures, business seating, conference centres, restaurants and commercial centres that bring in revenues and mean investors aren't entirely exposed to the ups and downs of sport," he said.
Champions Olympique Lyon, winners of five titles in a row, has expressed repeated interest in listing the club. That could allow it to compete with renowned clubs such as Barcelona or AC Milan.
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