Premiership to decide on Altrad’s Gloucester plans

Conflict of interest fear as Montpellier owner gives up takeover but still aims to buy shares

ohed Altrad, the Syrianborn billionaire owner of French Top 14 side Montpellier, will be denied any operational control over Gloucester if his multi-million pound investment in the Aviva Premiership club is approved later this month.

It is understood that Altrad abandoned his controversial plan to take a majority stake of 54 per cent in the club at a European Professional Club Rugby board meeting in Geneva last month, in the face of overwhelming opposition from the governing bodies and clubs.

Now it can be disclosed that revised proposals to buy a 45 per cent stake would be bound by stringent regulations – including sanctions that could see both Gloucester and Montpellier face expulsion from European competitions for up to five years for any breach – to prevent any perception of a conflict of interest.

That would prevent Altrad having any input into Gloucester’s player recruitment or the coaching structure – ending speculation that Philippe Saint-André would be parachuted in as a director of rugby by the new investor.

To protect the integrity of the European Champions Cup and the Challenge Cup, European regulations prevent any club buying more than a 10 per cent stake in another club, so approval of Altrad’s investment will require unanimous backing.

European rugby officials are keen not to be seen to stand in the way of new investment coming into club rugby without valid legal reasons but they want rigid safeguards against even the perception of a conflict of interest.

Altrad has written a letter to the EPCR for circulation to the clubs, provinces and unions, outlining his proposals. He is thought to have made it clear he is happy to consent to any restrictions on the scope of his influence.

It is understood that his investment would include the rebuilding of Kingsholm Stadium – which almost certainly would be renamed the Altrad Stadium – laying a new pitch and improving facilities for Gloucester’s academy. He would also have a place on the Gloucester board but would have no say in the day-to-day running of the club.

Nonetheless there remains a degree of suspicion as to his intentions among some Premiership clubs, a feeling that was not helped by the announcement yesterday that the Altrad Group, which sells and hires out construction equipment, is the new shirt sponsor of the France national side.

The English clubs have yet to declare whether they will back the proposals but appear to be key players and it may be that they insist that Altrad reduces the percentage of the shareholding or that they reject it altogether.

A meeting of Premiership Rugby stakeholders is expected to take place in the next couple of weeks and a final decision is expected by the end of the month.