Biarritz Olympique Investment: Erlich’s €3.5 Million Pledge
BIARRITZ — May 9, 2024 — The significant investment by Jérémy Erlich into Biarritz Olympique is gaining traction. The commitment from the former Spotify executive, totaling €3.5 million, has been deposited in a CARPA account, signaling his intent. While not a direct investment, the funds show financial capability. The Rugby Regulatory Authority (A2R) is reviewing the plan, aiming to ensure the long-term financial stability of the club, and will decide the future of the investment, which will determine if the primary goal of *Biarritz Olympique* can be achieved.
Biarritz Olympique Investment: Erlich’s €3.5 Million Pledge Signals Intent
The long-anticipated investment by Jérémy Erlich in Biarritz Olympique (BO) is gaining momentum. The former music manager at Spotify has deposited €3.5 million into a CARPA account (Autonomous Caisse for the pecuniary Regulations for Lawyers), according to sources. This sum mirrors the investment made by Pierre-Édouard Sterin and Otium during the club’s rescue a year prior.
While the deposit itself doesn’t constitute a direct investment, it strongly indicates Erlich’s financial capability and commitment to the club.
Regulatory Scrutiny and Future Guarantees
Dominique Debreyer, head of the Rugby Regulatory Authority (A2R), acknowledged the meaning of this step, stating, They show that they (Jérémy Erlich and his possible associates, editor’s note) are ready to make an effort. It is indeed an advance, but not decisive.
The exact details of Erlich’s financial participation remain to be finalized and, crucially, must be presented to the LNR’s financial watchdog for approval. This regulatory body will ultimately decide whether the funds can be released from the CARPA account.
Financial Stability: A Key Requirement
The A2R is seeking assurances that the new investors can guarantee the club’s financial well-being. The €3.5 million deposit matches Otium’s previous investment, which included €1 million to complete last season’s budget, €2 million as a first request warranty (of which BO recently utilized the last €300,000), and various interests, rents, and other investments made by Sterin’s company.
To secure the A2R’s approval,the new investors must demonstrate their ability to sustain the club financially. Debreyer emphasized, we expect guarantees over two, even three years.
If Biarritz Olympique’s budget and income remain consistent with the current season, Erlich and his potential partners must prove their capacity to provide between €4 million and €6 million. Arnaud Dubois and shaun Hegarty have until May 31, the date of the next A2R visit, to finalize their financial plan and confirm the injection of new capital.
Related Developments
The arrival of new investors could also impact the lease of the Aguilera stadium. Currently managed by Otium, the board du BO reportedly wishes to regain control of the emphyteutic lease.
Frequently Asked Questions
- What is a CARPA account? A CARPA account is a secure account used by lawyers to hold funds during legal transactions.
- Who is Jérémy Erlich? Jérémy Erlich is a former music manager at Spotify and a potential investor in Biarritz Olympique.
- What is the A2R? The A2R (Rugby Regulatory Authority) is the regulatory body responsible for overseeing the financial stability of rugby clubs.
- How much must erlich invest? Erlich and his partners must demonstrate the ability to provide between €4 million and €6 million over the next few years.
