Paris Saint Germain (PSG) lost 370 million euros last season, as stated by L’Equipe, which includes the new deal signed with the French star Kylian Mbappe. It explained the fine imposed on it by UEFA. The accounts for the financial year 2021-2022 will be finalized in a few weeks and this amount will be displayed there.
PSG suffers 370 million euros due to Mbappe’s contract
The club desired to account for Mbappe’s remuneration for the upcoming three financial years in the previous season, which wouldn’t be logical. The amount is 630m euros, according to Le Parisien, that’s denied by the club. Particularly, about a third is integrated into the 2021-22 expenses.
Reports suggest that UEFA authorized the club to take the action, keeping in mind that the present season marks the beginning of a fresh three-year cycle. A new financial fair play control framework will come into existence; whose goal is to take care of fairness among European clubs.
Beyond including a part of the future salary of Mbappe, PSG has accounted for the wage bill for the remaining squad for close to 600 million euros. That takes the operating amount to 1 billion euros.
Loses brought a UEFA sanction of 65 million euros
The losses for the season have brought a UEFA Sanction of 65 million euros. From the compliance 55 million was exempted, and the payable fine was reduced to 10 million euros, with a negotiation between both parties.
Till the next three seasons, i.e., until the summer of 2025, PSG will need to adjust its accounts. This would result in a maximum deficit of 60 m euros in net income.
Also, the wage bill will need to be progressively decreased and not increase 70 percent of revenue from 2025-26.