SBA Stadium Facing Financial Crisis: Can an Agreement with Bordeaux Metropole Save It from Bankruptcy?

LA TRIBUNE – SBA already posted more than 20 million euros in cumulative losses at the end of 2022. Has the year 2023, very eventful, made it possible to redress the situation?

LOÏC DUROSELLE, general director of SBA – This year 2023 will remain very exceptional with the hosting of five major concerts and five Rugby World Cup matches. Despite all these events, we are getting closer to balance in 2023 but we are not there yet, far from it! However, this stadium has largely established itself in the program of major concert tours and major sporting events. It’s a hit for what it was designed for! This is an excellent deal for the community but above all it is real good news for the region, which is never a given for equipment of this magnitude. The Matmut Atlantique has found its audience and is in perfect condition after eight years of operation.

The conciliation with Bordeaux Métropole on the management of the Stade Matmut Atlantique was completed in December. The community welcomes this and is confident in finding a compromise. What do you take away from this report?

We are in line with the philosophy of the Metropolis since it is imperative to find a solution. We have been talking for two years in vain but the outcome of this conciliation, which is provided for in the partnership contract, now allows us to move forward. I am extremely satisfied with this report, which is of high quality and allows us to objectify the elements and amounts raised by everyone. The report comments on the causes of this structural imbalance of the contract for the benefit of the community which results from the gap between the reality of the operation of the stadium and the initial bet.

But this discrepancy results precisely “ poor forecasting of associated costs and revenues » developed by SBA…

Yes, but that’s not really the subject today… There are responsibilities for everyone and a context that has changed too. The challenge now is to find solutions to avoid the cessation of SBA activity! If we do not find a solution before the Paris 2024 Olympic Games [du 26 juillet au 11 août, NDLR], SBA will cease payment. This is not a threat but an economic reality! Shareholders Vinci and Fayat have already lost more than 21 million euros since 2015 and if they continue to support SBA in this way, it could amount to abusive support. They cannot therefore go any further and the consequence will be referral to the commercial court in 2024 for a judicial recovery or even liquidation procedure.

A scenario that all stakeholders want to avoid?

Yes, a solution must be found at all costs. In the event of cessation of payments, Bordeaux Métropole would have to recover the operation of the stadium and that is not its business. There would be a considerable cost to public finances. And that wouldn’t be good news for SBA shareholders either. The good news is that this report provides ways to find an agreement with shared efforts. We are prepared to follow 100% of the findings of the report.

Ways to refloat the Matmut Atlantique stadium and avoid filing for bankruptcy

What are the parameters that could evolve within the framework of an agreement with the Metropolis?

I cannot reveal the conclusions of the report which are confidential but the partnership contract already provides for possibilities for development on, for example, the cost of pitch standards set by the Professional Football League which has increased enormously since 2015. We must take into account these types of external elements that impose themselves on us. And if there is political will, there is necessarily a technical route.

How far are you willing to go to find a compromise?

SBA shareholders Vinci and Fayat have already lost a lot of money since operations began in 2015 and are no longer able to continue their support. They are quite ready not to see the color of the 21 million euros lost so far and the money injected to make up part of this deficit. But they are also completely ready to give up receiving income until the end of this contract in 2045! This is a huge effort since the very purpose of this type of contract is to allow the company to make money. To no longer have to artificially reinject money into the farm, they are therefore ready to give up their profits, it is an effort of several tens of millions of euros [lire l’encadré, NDLR]. The objective is to find a way to balance exploitation for the benefit of the territory. We have already made this proposal to Bordeaux Métropole and we must succeed before the Olympic Games, otherwise we will be in a difficult situation.

What is the impact of the Matmut Atlantique stadium on the local economy?

A partnership contract until 2045

In 2015, Bordeaux Métropole signed a partnership contract entrusting SBA, a subsidiary of Vinci and Fayat, with the design, construction, operation and maintenance of this 42,000-seat stadium built for Euro 2016. The economic model initial forecast a cumulative loss of seven million euros from 2015 to 2023 before breaking even in 2024 then generating around 30 million euros in cumulative profits from 2025 to 2045. In reality, the losses are three times more significant and already exceed 21 million euros, despite financial support from the Metropolis linked to Covid. In this context, the 30 million euros in gains that SBA claims to forego therefore remain very theoretical.

“This report reinforces the position of Bordeaux Métropole […] which is in no way responsible for the economic imbalance observed since the origin of the operation, the latter resulting from a poor forecast of associated costs and revenues”, recalled Bordeaux Métropole at the end of December outlining the possibility of finding a compromise on the terms “fair” and “compliant with public contract law and not resulting in profits for current operators”. A formal agreement is hoped for the first quarter of 2024.

2024-01-15 17:33:38
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