PSG tread the fine line
PARIS Saint-Germain are confident they will comply with Uefa’s Financial Fair Play rules despite European football’s governing body opening an investigation over the signing of Neymar this summer for a world record fee of €222 million (£203.6m) and the extraordinary deal for Kylian Mbappe that could rise to €180m (£165.1m).
Telegraph Sport understands, from sources at Uefa, that PSG have been careful to keep Europe’s governing body fully informed as to how they structured both deals, particularly the complicated, protracted deadline-day agreement for Mbappe to sign from Monaco initially on a season-long loan.
Astonishingly, it is also understood that the Mbappe deal almost collapsed at the 11th hour because negotiations between the two clubs were complex and dragged on.
There was real fear that the move would not happen and Mbappe would stay at Monaco, who did not want him to go during this window but could not persuade him to sign a new contract.
The amazing deal that has been agreed between the French champions and their closest rivals, who are the most powerful club in France, will see PSG pay no fee for Mbappe this season.
After that the 18-year-old will be signed on a permanent fouryear contract, until June 30 2022, for a minimum fee of €145m (£133m).
In addition to that, there are various bonuses and add-ons that could amount to a further €35m being paid to Monaco over his contract.
PSG will pay part of the fee next season and then the following season but, interestingly, the deal will begin to be “amortised” written-down, or the cost spread, over the course of the contract from this season.
So the costs will be covered over five years and not four, it appears.
PSG have also brought in €65m (£59,6m) through player sales during this window, with interest still from Spain, where the window did not close until Friday night, in two of their big-names Angel di Maria and Julian Draxler.
The sales include Serge Aurier to Tottenham for €25m (£22,5m), Blaise Matuidi to Juventus for €20m (£18m) and Jean-Kevin Augustin to RB Leipzig for €13m (£11,7m).
At the same time some high-earners have also gone on loan, including Jese Rodriguez to Stoke City and Grzegorz Krychowiak to West Bromwich Albion.
Overall, it means that PSG have saved more than €32m (£29,3m) in salaries from moving on these players, although clearly that will be topped by the money they pay Neymar and Mbappe.
PSG will also be in the market to sell players when the January window opens, and next summer, to ensure that they comply with FFP, having fallen foul of the regulations in the past when they were fined €20m (£18m).
Uefa has warned that it still takes FFP seriously and PSG have taken that on board despite claims from the big Spanish clubs that they have ridden roughshod over the rules, with the French club expressing incredulity the investigation had been launched.
“The club is surprised by this approach given that it has constantly kept the Uefa Financial Fair Play teams informed about the financial impact of all players’ operations carried out this summer, even though it wasn’t obliged to do so,” PSG said in a statement.
“The club is very confident in its ability to demonstrate that it will fully comply with FFP rules for the fiscal year 2017-18 . . .”
They added: “Deputy CEO Jean-Claude Blanc met with Uefa experts including Andrea Traverse, responsible for Uefa Financial Fair Play for more than three hours on August 23 at Paris Saint-Germain’s headquarters where he demonstrated that the operations carried out with FC Barcelona and in progress at that time with AS Monaco followed the rules of FFP for the financial year 2017-18.”
Interestingly, and this is where PSG will face scrutiny given their Qatari ownership structure, the club is also re-negotiating contracts with a number of key sponsors to bring in yet more revenue.
It will argue with justification that the signing of Neymar, in particular, and now Mbappe has hugely raised the profile and interest in the club and is attracting commercial partners. That is already being born out in increased revenue through merchandising, in particular, with PSG shirts being sold out.
The team’s third strip, a yellow kit, has been rushed out three weeks early to meet demand and the second kit is sold out.
There has been a huge surge in demand for tickets and matchday income has gone up dramatically. Telegraph