According to L’Equipe, Paris Saint-Germain (PSG) lost 370 million euros last season, a figure that can be explained by considering the full value of the new deal that the team signed with star player Kylian Mbappe. This amount also supports the UEFA sanction that was imposed on PSG.
With a few minor revisions, this 370 million shortfall is what will show up when the finances for the 2021–2022 fiscal year are finished in a few weeks, according to a story published on Saturday by a French sports daily.
This deficit is mostly attributable to the club’s desire to account for Mbappe’s salary for the upcoming three fiscal years in the current season, which is contrary to logic and which, according to Le Parisien, is 630 million euros, a figure that the club disputes. More specifically, a third has already been added to the costs for 2021–2022.
According to a financial expert cited by L’Equipe, UEFA granted the club permission to do this because it was aware that the current campaign heralds the beginning of a new three-year cycle in which the new financial fair play control framework, intended to ensure fairness among European clubs, will go into effect.
In addition to factoring in a portion of the star striker’s future income, PSG has budgeted nearly 600 million euros for the salaries of the rest of the team, bringing the whole operational budget to more than 1 billion euros.
In contrast, the French champion had record earnings of 700 million euros. These income ought to rise once more in the current fiscal year and surpass the 800 million euro mark.
The 2021–2022 season losses resulted in a 65 million euro fine from UEFA. However, due to a 55 million exemption from compliance, the punishment that had to be paid was negotiated down to 10 million euros.
In accordance with this negotiated agreement, PSG will have to make adjustments to its financial statements over the course of the next three seasons, or until the summer of 2025. In actuality, this will result in a maximum net income shortfall of 60 million euros.
In addition, starting in 2025–2026, the salary bill must gradually decrease and not account for more than 70% of income. The French club has also agreed to update UEFA on its progress toward its “intermediate financial targets” every six months.
Since PSG is owned by the sovereign wealth fund of Qatar, LaLiga has repeatedly criticized its financial management. PSG can lose millions of euros to achieve its goals of gaining notoriety and political influence, which disadvantages other teams like the Spanish teams, who adhere to the principles of financial fair play.
