PSG set to stay within FFP restrictions ahead of transfer window

Having been sanctioned last year over Financial Fair Play breaches, leading to an initial fine, Paris Saint-Germain’s finances are set to stay within the framework agreed with UEFA ahead of this summer’s transfer window, according to a report from Le Parisien tonight.

The settlement, which had brought the Ligue 1 side’s fine down to €10m, set out a strict plan over the next few seasons to balance the club’s spending, with an additional €55m fine hanging over their heads. The sanctions notably came in the wake of their €369m in losses over the 2021/22 season. 

The new Football Social Responsibility (the new iteration of FFP) rules, brought in a year ago, prevents clubs from losing more than €60m. In PSG’s case, the agreement they signed with European football’s governing body allows them to lose exactly that figure over the current season, provided there is no deficit over the next two campaigns. 

According to the projections the club has shown UEFA, this year will bring in a record €800m in revenue – which is notably down to the ticket sales and hospitality, which reportedly beat out every club in Europe at €132m. The CVC investment fund’s acquisition of a minority stake in the league’s commercial entity has also brought in a sizeable chunk of revenue, which was distributed among Ligue 1 clubs – in PSG’s case, €200m over the next three years, of the €1.5bn invested.

Also helping to relieve FFP pressure are the specifics of Kylian Mbappé’s contract extension last year. Although his €180m signing-on fee will be paid to him over three years, the entirety of the sum will be registered on the club’s accounts for 2022. This should allow PSG to stay within the new requirements, that dictate that no more than 90% of revenue can be spent on the wage bill this year – a figure that will decrease to 80% in 2024, and 70% the following year. The league leaders should, then, have some more room for manoeuvre than last summer – and the sales of the likes of Mauro Icardi, Georginio Wijnaldum, Julian Draxler, Leandro Paredes are expected to help increase their budget. Whether they will spend it wisely, though, is another matter entirely.

GFFN | Raphaël Jucobin