Toulon Threatened With Relegation to Pro D2

The French press has today reported that Toulon are being threatened with relegation to the ProD2 due to a €2m hole in their finances related to the termination of their kit deal with Puma in 2011.

The DNACG, have ordered Toulon president Mourad Boudjellal to cover the unpaid costs before the start of next season, or face a penalty.

The illegal termination of their kit deal with the German sportswear company, led to an initial claim of €6.5m in damages and alleged that the club had signed a contract with the company until 2013.

Local paper Var Matin alleges there's a €2m "hole" in the club's finances & French rugby's financial gendarme wants rapid answers

— gavin mortimer (@gavinmortimer7) June 20, 2017

Toulon negotiated with Burrda, a rival kit sponsor, then broke the deal off with Puma. The High Court in Strasbourg sided with Puma in 2014, however, the case was settled with a €730,000 compensation package paid by Toulon.

However, this sum was increased to €1.7m in May this year. The French giants face relegation or a wage bill restriction if they do not cover the outstanding amount.