One hundred and fifty million francs available to hockey clubs in the form of repayable loans. The news is still too fresh, it is still a little too early to take a definitive look: it is sort of the message transmitted “hot” by the leaders of the professional clubs of Swiss hockey, who have just obtained Wednesday afternoon confirmation that they will be able to draw on the funds made available by the Confederation (75 million from June 1) if the crisis were to last and hinder the resumption of the championship this fall.
All are grateful for the gesture towards them and consider that the political signal in favor of sport is strong and welcome. The fact remains that, as it stands, Swiss hockey clubs are rushing to get their share of the cake. In particular due to the constraints linked to obtaining the funds made available by the Confederation. “We are very happy to receive a credit, explains the director of the League, Denis Vaucher. In the event that the crisis should continue, the 150 million made available by the Confederation provide us with guarantees for the start of the season. However, the problems will come after, when it comes to reimbursement. The conditions for obtaining them are very tough and negotiations with the OFSPO were very intense between Friday and Monday evening. It’s a bit like insurance, but with premiums that are very high … “
Condition: in camera or reduced capacity
A tranche of 75 million intended for ice hockey will be released as of June 1. Another, identical, in 2021 if necessary. “The condition, according to the signed declaration of intent, is to play in camera or at reduced capacity (note: eg less than 1000 spectators), specifies Denis Vaucher. If, on the other hand, the championship can resume normally on September 18 with the public, which we hope, these credits will not be available. ”
If clubs were to find themselves in financial difficulty despite everything, they would then have to turn to the 50 million fund made available by the Confederation in its first aid package for sport.
“The Confederation has sent a strong signal to competitive sport,” applauds Sébastien Pico, CEO of HC Visp in the Swiss League. It proved that we had a role to play in society and gave us a financial solution so that we could continue to exercise it. We will now have to see precisely how the criteria are applied. ”
The reimbursable funds will be centralized with the League and available under strict conditions. Like the need to reduce payrolls by 20% in three years, to maintain an identical level of commitment for the next generation, and the creation of a solidarity fund in five years to prevent possible future crises.
“It is normal for aid from the Confederation to be linked to strict support measures,” comments Raphaël Berger. The managing director of FR Gottéron is however very cautious about this possibility of borrowing and the credit mechanism. “It is a decision that has just fallen and certainly deserves time for reflection within the clubs,” he explains. A loan can be used as a short-term lifeline, but does not necessarily help solve problems in the medium term. It’s like taking out a loan to pay off another loan. It doesn’t help to move forward. We are obviously happy that people think of us and are reaching out to us in this crisis situation. But there are still many points to be clarified. ”
“Loans don’t erase losses”
If HC Bienne, through the voice of its CEO Daniel Villard, “welcomes the decision of the Federal Council in a positive way”, the club from Zealand also wants to be cautious about this possibility of credit. “If this crisis is to continue, it is good to have the possibility of borrowing so as not to suffocate,” said club co-president Stéphanie Mérillat. These are still loans, which will have to be repaid and integrated into budgets that are already tight. ”
On the Lausanne side, we hope to obtain more clarity regarding the conditions for obtaining these funds available. “We do not yet know all the details, the conditions of these credits, the guarantees that must be given, delays the LHC CEO, Sacha Weibel. Loans are good for short term cash flow. But we also need to analyze what the implications would be for the future of the business. And don’t forget that loans don’t write off losses. “
One thing seems inevitable, however: Swiss clubs will have to revise how they operate in the future. In other words, wages must go down. “We must change our business model by lowering costs and lowering wages,” says Denis Vaucher. This is a discussion that we must lead to get there step by step. We will not escape it. “
Cyrill Pasche, with E.F and J.R.
Created: 13.05.2020, 21:25
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