Proposal 6: strengthen the equity of clubs and diversify their capital

"The capital of clubs, to strengthen their stockholders' equity, must be immediately diversified and strengthened," is the main point of the sixth proposal of the report "Towards a sustainable model of French football", submitted by Jean Glavany, chairman of the Commission, to Valérie Fourneyron, Minister of Sports, Youth, Popular Education and Community Life, on 29/01/2014.

The report indicates that the reduction of clubs' capital is "worrying" as the sum has been halved since 2008. "Capital is essential for long-term investment and to avoid dependence on debt."

The Glavany Commission recommends that clubs open new avenues of capital to private and institutional investors, as well as to supporters, via public shareholding.

PROPOSAL 6 AND ITS IMPLEMENTATION:

• Opening the capital of clubs to new private and institutional investors is likely to meet the challenges presented by the low revenue diversification of clubs and the continually increasing payroll.
• Attract new investors, including those traditionally distant to football clubs, and to facilitate as much as possible their…