Gloucester lose potential investor as Mohed Altrad pulls out of deal
Tuesday 18 April 2017 18:36, UK
Mohed Altrad has withdrawn his proposed investment in Gloucester after Premier League Rugby (PRL) voted to restrict his holding to a maximum 20 per cent.
The Syrian businessman, who owns French side Montpellier, wanted to take control of a 45 per cent interest but a PRL board meeting vetoed that and set the limit at less than half, following the lead of France's Ligue Nationale de Rugby.
With the critical decisions made in advance of the next European Professional Club Rugby meeting, Altrad has withdrawn completely.
"Whilst this news is extremely disappointing for Gloucester Rugby club and myself, rugby more generally is the biggest loser," he said in a statement.
"Our vision was to support an English club, facilitate investment in junior and senior players as well as coaching staff and improve its training and playing facilities.
"The wider benefits were obvious: a stronger club at both English and European level which would have generated more interest in the sport; investment in English qualified players to support the RFU on the international scene and, more widely, a sign to potential investors that European rugby was entrepreneurial, ambitious and open for business."
Altrad insisted that every effort had been made to satisfy the authorities there would be no conflict of interest between Gloucester and Montpellier and is bemused as to why they were deemed insufficient.
"Our proposals included very clear conflict of interest policy, fully auditable by regulatory bodies and with an express acknowledgement of the sanctions for breach," he added.
"I staked my personal reputation and that of my global group, Altrad, to respecting these standards of integrity.
"I have still not received any substantive reasons why our safeguards were insufficient, beyond a sense of general discomfort with dual interests."
Gloucester chairman Martin St Quinton also expressed frustration at the loss of Altrad's investment but remained upbeat about the club's future.
"After many months of work and negotiations, we are understandably disappointed that matters have concluded this way and we fully understand Mohed Altrad's disappointment," he said.
"We worked tirelessly together to try and overcome all the obstacles put in our way. Sadly, the matter was ultimately taken out of our hands, other parties decreed that it was not meant to be.
"We firmly believe that we have an exciting future ahead of us and whilst we naturally would have welcomed Mr Altrad's investment in to the English game, we are on a solid footing moving forward and look forward to finishing this season strongly and have a lot to look forward to next season and beyond."
