The president of Paris Saint-Germain (PSG), Nasser Al-Khelaifi, faces charges of complicity in abuse of power related to shareholder voting irregularities at the Lagardere Group, a prominent French media conglomerate. This latest legal challenge adds to a string of cases Al-Khelaifi has confronted, though he has consistently denied any wrongdoing. The charges stem from a 2018 boardroom power struggle within Lagardere, during which Al-Khelaifi allegedly played a role in influencing the voting position of Qatar Holding LLC, a subsidiary of the Qatar Investment Authority (QIA) and a major Lagardere shareholder. The core accusation revolves around the alleged manipulation of QIA’s vote to favor Arnaud Lagardere, then-head of the Lagardere Group, amidst a contentious battle for control of the company.
The 2018 Lagardere boardroom drama involved several powerful players, including billionaire Vincent Bollore, allied with the Amber Capital investment fund, and Bernard Arnault, head of LVMH, supporting Arnaud Lagardere. Initially, QIA sided with Amber Capital’s resolutions. However, just five days later, QIA reversed its position, aligning with Lagardere’s proposals. This sudden shift in QIA’s stance triggered suspicions of undue influence, leading to the current charges against Al-Khelaifi. The investigation focuses on alleged communications between Lagardere and his associates, including Al-Khelaifi, in his capacity as a QIA director, which may have swayed the Qatari fund’s vote.
Al-Khelaifi’s involvement in the Lagardere case unfolds against the backdrop of other legal challenges he has faced. Notably, he was previously indicted in connection with alleged corruption surrounding Qatar’s bids for the 2017 and 2019 World Athletics Championships. However, this indictment was later overturned by France’s highest court, which ruled that French courts lacked jurisdiction in the matter. Separately, Al-Khelaifi is also under investigation for allegations of kidnapping and sequestering a Franco-Algerian lobbyist in Qatar. He vehemently denies these accusations and has countersued, asserting his innocence.
The charges against Al-Khelaifi represent a significant development in the ongoing scrutiny of his business dealings. While he has consistently maintained his innocence, these legal battles raise questions about his conduct and the potential influence he wields. The accusations paint a picture of complex power dynamics and behind-the-scenes maneuvering within the corporate world, specifically concerning shareholder voting and the struggle for control of influential companies like Lagardere. The outcome of this case could have significant repercussions for Al-Khelaifi’s reputation and his continued leadership at PSG.
Adding further layers to the complex narrative, Arnaud Lagardere, at the center of the 2018 boardroom struggle, is himself under investigation for allegedly misappropriating approximately €125 million of company funds for personal expenses. This separate investigation intertwines with the allegations against Al-Khelaifi, further highlighting the intricate web of financial dealings and power plays within the Lagardere Group. The eventual takeover of Lagardere by Vivendi, controlled by the Bollore family, adds another dimension to the story, underscoring the high stakes and intense competition that characterized the battle for control of the media conglomerate.
The charges against Al-Khelaifi bring into focus the challenges of navigating corporate governance, particularly in situations where powerful individuals and entities clash for control. The accusations of vote-buying and influence peddling raise concerns about the integrity of shareholder voting processes and the potential for undue influence to distort corporate decision-making. As the legal proceedings unfold, the case will likely shed further light on the inner workings of corporate power struggles and the role of influential figures like Al-Khelaifi in such battles. The outcome will undoubtedly have significant implications not only for Al-Khelaifi but also for the broader landscape of corporate governance and the regulation of shareholder voting practices.
