In Nantes, the floodlights are still some distance from a deal, but the paperwork already matters. Any agreement between Waldemar Kita and the prospective buyers led by Paulo Tavares would face a newly empowered financial watchdog, with the ability not merely to warn but to halt the transaction.
DNCG given wider powers over club takeovers
French football’s financial regulator, the DNCG, has gained significantly stronger authority following the adoption on 3 August of the law on the organisation, management and financing of professional sport.
The reform changes the landscape for sales, acquisitions and changes of ownership in French clubs. Chaired by Jean-Marc Mickeler, who is also a global vice-president at Deloitte, the DNCG must now conduct a broader examination of any proposed investor or buyer.
- The body reviews whether a proposed transaction complies with multi-club ownership rules.
- It assesses the candidate’s stakes in other football clubs.
- It examines the prospective shareholder’s financial results over the previous five years.
- If that investor controls, or previously controlled, other clubs, the DNCG must also study those clubs’ financial records across the same five-year period.
The objective is to test both the buyer’s capacity to fund the project and their financial history before control of a French club changes hands.
Nantes proposal set for close examination
Phenix Sport Invest, headed by Paulo Tavares, has begun a process to acquire FC Nantes from Kita, with a number of partners announced around the project. The proposed figures, said to be above €100 million, have drawn considerable scrutiny inside French football.
If the two sides reach an agreement, the prospective shareholders will be examined by the DNCG. The regulator’s role has become especially important because its intervention now carries an explicit legal power to prevent a sale.
Before the August reform, the DNCG could raise concerns and issue observations or recommendations when it had serious doubts about a takeover plan. It did not, however, have a clearly defined statutory authority to reject the transfer of ownership itself.
Approval, delay or outright rejection
Once the file has been reviewed, the DNCG has several available outcomes.
- It can approve the deal without conditions.
- It can authorise the transaction subject to conditions or reservations.
- It can suspend the project for up to three months while further checks are carried out.
- It can reject the proposed sale.
The consequences of ignoring the regulator could be severe. Should a seller and buyer complete a transaction despite a DNCG suspension or rejection, the club may face sanctions ranging from a ban on promotion to relegation or exclusion from competition.
