How can PSG sign Neymar from Barcelona?

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The biggest transfer deal in soccer history is probably also going to be the most complex.

With UEFA’s Financial Fair Play rules halting Paris Saint-Germain, Manchester City and many others from spending even more cash over the past few seasons, talk of Neymar’s potential $255 million transfer from Barcelona to PSG boggles the mind.

How can PSG pull this off and not break UEFA’s FFP rules? Well, here’s a deeper look at the numbers and how it could work.

If Neymar’s transfer did go through and his wages are as astronomical as reported — all-in the transfer fee, wages and other fees would top $586 million, with wages of over $50 million per year — then PSG have to bring in some huge finances from sponsors, ticket sales and move on some other players, right?

Not quite.

Under the interpretations of FFP rules, the sums are added up each season and the players’ value is amortized over the length of their contract. So, if the contract for Neymar was split up over five years PSG would put that down as $50 million per season, plus whatever they owed on the transfer fee if they were paying it off in installments.

A little more manageable, if still absurd.

When it comes to Neymar’s release clause set to be triggered, that usually means all of the cash is needed straight up. Tricky. What is more likely is PSG will pay $100 million and then stagger the rest of the fee over a five-year period, if Barca agree to it.

There are always many, many complexities to these type of deals, and especially with Neymar’s former club Santos potentially having a sell-on clause and many other factors such as loyalty fees, bonuses, agent fees and more.

PSG chairman Nasser al Khelaifi will have plenty of work to do to get this deal done and there are also reports in Spain that the Qatari government could enter into a separate agreement to pay Neymar his wages.

That said, under the FFP rules, one thing to remember is key: clubs have to bring in what they are spending but they can still make losses of up to $34.9 million per season under the current rules.

With PSG owned by a company which is essentially the State of Qatar, UEFA will automatically investigate a team where 30 percent or more of their revenue is supplied by a company linked to the owner. PSG have already been sanctioned heavily in the past with huge fines, restrictions on how many players can play in a UCL season and having their spending capped in 2014-15.

It is likely PSG’s Qatari owners, Oryx Qatar Sports Investments, will have alternative revenue from sponsors and commercial deals already lined up to help deal with the issues Neymar’s arrival could have in terms of FFP.

These sums are huge and the complexity of this deal is obvious, but if Neymar did join PSG then his marketability would surely see them recoup plenty of cash in other ways.

Therein lies the golden rule to all of this: you have to speculate to accumulate.

Somehow PSG believe this transfer fee and Neymar’s wages would be money well spent. Whether or not that is the case we will have to wait and see, but the answer is that this deal could happen, even under the rigid restrictions of FFP.

PSG would have to work hard to balance the books and bring in extra revenue, but their owners are better placed than most to make that happen.