This tax adjustment which could put the French Rugby Federation into cessation of payments

Pour Florian Grill, président de la FFR, la situation financière se complique. MAXPPP – SPEICH Frederic

Des pénalités, liées à un mauvais taux de TVA sur des packages de voyages durant le Mondial-2023 en France, risquent de fragiliser un peu plus une FFR déjà dans le rouge.

The Economic Interest Group (GIE) in charge of organizing the 2023 Rugby World Cup has been notified of a tax adjustment and penalties of 20.7 million euros, announced the president of the French Rugby Federation Florian Grill, confirming information from the newspaper L'Equipe.

The tax authorities are accusing the GIE of incorrectly applying VAT on ticket+travel or ticket+hospitality packages, the sports newspaper revealed on Tuesday. The GIE considers that the VAT should be 5.5%, the rate for a match ticket, while the administration considers that the rate that should apply is the basic rate, 20%.

Losses of 13 million in 2024 for the FFR

The bill, including adjustment and penalty, amounts to 20.7 million euros. The GIE is 55% owned by the French Rugby Federation and 45% by the organization of the 2023 World Cup, of which the State, but also the FFR, is a shareholder.

The consequences would be serious for the French Rugby Federation, which is tightening its belt and suffering from a chronic operating deficit. It revealed a loss of 13 million euros on its postponed financial year of the 2023-2024 season, in particular by including in its accounts the loss of 16.3 million euros due to the deficit linked to the economic interest group of the 2023 World Cup.

“We can't climb the north face of Everest”

“We save 18 million euros on a budget of 130 by asking everyone to make an effort, we find new partners but we can't climb the north face of Everest with stones in our backss”, Florian Grill said. “If we had to pay this amount, we would be in cessation of payment”, he also assured.

An interministerial meeting, in which members of the federation are participating, is to be held this Wednesday, February 5, he explained.