PSG, with millionaire losses

The paris st germain (PSG) had 370 million euros of losses last season, according to L’Équipe, a figure explained by including the sum of the new contract signed with its star Kylian Mbappeand it justifies the fine imposed by UEFA.

The French sports newspaper is moving forward this Saturday, with a few minor adjustments, those 370 million deficit They are the ones that will emerge when the National Management and Control Directorate of the Professional Football League (DNCG) formalizes the accounts for the 2021-2022 financial year in a few weeks.

The main explanation for this loophole is that the club wanted to count on last seasoncontrary to what would be logical, Mbappe’s salary for the next three years and that, according to Le Parisien, is 630 million euros, an amount that the team rejected.

In particular, about a third has already been included in the 2021-2022 costs.

UEFA – a specialist in financial matters quoted by L’Équipe points out – has allowed this, knowing that at the present time a new three-year cycle where the new financial fair play control framework which aims to guarantee equality between European clubs.

Beyond including a portion of its star striker’s future wages, PSG has accounted for mass wage from other squads for almost 600 million euroswhere the operating budget exceeds 1,000 million euros.

Against that, the champion of France has few record income with 700 million euros. In the current financial year, those revenues should rise again and exceed the threshold of 800 million.

The losses of the 2021-2022 season caused a UEFA’s penalty is formally 65 million euros. But since 55 million is exempt from compliance (except in the case of recidivism), the fine he had to pay remained at 10 million euros, after negotiations between the two parties.

Under the agreed agreement, PSG need to settle their accounts over the next three seasons until the summer of 2025, which in practice would mean a maximum deficit of 60 million euros in net income.

In addition, the weight of the wage bill must be gradually reduced and not exceed 70% of income from 2025-2026.

The French club also committed to reporting to UEFA every six months on the progress of its situation with “intermediate financial objectives”.

The Spanish LaLiga has repeatedly criticized PSG’s financial managementwhich, because it is owned by the sovereign fund of Qatar, is not guided by profitability standards and can lose millions and millions of euros to achieve its goals of notoriety and political influence, which -leaving other teams, like Espanyol, at a disadvantage. respecting the spirit of financial fair play.