That’s a huge amount! PSG announced a record loss and will be punished. Mbappé’s contract is largely to blame

Paris Saint-Germain recently announced a huge and record loss for the 2021/22 season! This is expected to amount to 370 million euros, with Kylian Mbappé, whose contract was included in the loss, bearing a large part of the blame.

French newspaper L’Équipe has reported that Paris Saint-Germain has announced a truly huge financial loss of 370 million euros.

This information will be official when the DNCG (the organisation responsible for monitoring and supervising the accounts of professional football clubs in France – ed.) confirms this amount. However, it is already almost clear that the confirmation of the amount will only be a formality.

Part of this particularly high figure can be explained by the fact that the club reportedly booked a substantial chunk of Kylian Mbappé’s new salary into the accounts from last season, adding tens of millions of euros to these figures.

The Parisian outfit were thus found guilty of breaching financial fair play and will pay an immediate fine of €10 million. If everything is then not compliant within three years, the fine could climb to 65 million. This means that Paris would pay an additional 55 million euros.

As part of the sanctions, PSG has signed an agreement with UEFA to ensure the club’s finances adhere to the rules of financial fair play. This includes losses not exceeding 60 million euros and wage costs not exceeding 70% of revenue starting in 2025/26.

In any case, PSG should not be the only punished club to post such a huge loss, according to French Football News.

The club’s wage bill then reached a total of €600 million, with revenues outside of transfer fees reaching €660 million.

The club’s top management estimates that this figure will exceed €800 million this year, mainly due to sponsorship deals as well as income from the CVC deal signed by the league authorities.

French Football News, Mirror