Schlerf Examines Bankruptcy Trends in International Sports for The Bankruptcy Strategist

12.13.2024

Stinson LLP Of Counsel Jeffrey Schlerf authored a column for The Bankruptcy Strategist, "Beyond Bordeaux's Bankruptcy: A Lesson in Adapting to the Evolving Sports Media Landscape." He explores the financial collapse of French soccer club Girondins de Bordeaux and the impact of financial challenges facing the country's top tier French league, Ligue 1.

Schlerf highlights the devaluation of Ligue 1's media rights, examining the underlying causes and proposing changes. He points to a lack of competitive balance, the regulatory framework of French soccer and inadequate crowd control as factors undermining the league's global appeal and diminishing its media rights value. To ensure the long-term survival of French soccer clubs, Schlerf emphasizes the urgency of addressing these issues and recommends adopting successful models used by other leagues, including the National Football League and Major League Soccer in the United States.

"This devaluation of the league's media rights is believed to have precipitated Bordeaux's bankruptcy. To reverse this trend, a more interesting and competitive sporting product should be created to boost viewership not only within the French market but also internationally," Schlerf writes. He says the financial downfall of Bordeaux should be a wakeup call for all soccer clubs in France, as there are more signs of financial distress among the French teams.

Schlerf is highly regarded both inside and outside the courtroom for his advice and advocacy in creditors' rights, financial restructuring and corporate reorganization matters, as well as for his deep knowledge of the sports industry. His clients are creditors, debtors, committees, trustees, purchasers and other parties in U.S. restructurings, including those involving professional sports teams. Schlerf also advises sports organizations on complex financial challenges and other business-related matters.

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