They say that when you don’t look at your bank account every day, you are rich. And that is precisely what is happening to Paris Saint-Germain and Manchester City.
Their profit and loss accounts are so absurd that it is totally impractical to believe that they comply with financial fair play. In fact, across the last 10 seasons, if we compare sales and income figures, PSG has a -988m euro balance and Manchester City recorded -1046m.
Meanwhile, Barcelona are trying to survive with both their hands tied due to LaLiga’s financial control.
Spending vs. Sales from 2011/12 to the present day
- Manchester City: 1.65 billion euros in expenses and 606 in sales = -1.046 billion euros
- PSG: 1.438bln and 450m = -988m
- Juventus: 1.578bln and 1.025 trillion= -553m
- Bara: 1.535bln and 993m= – 542m
- Liverpool: 1.089bln and 660m = -429m
- Bayern: 796m and 374m = -422m
- Real Madrid: 1.098bln and 903m = -195m
The financial power of these two state-owned clubs has meant that money has never been an issue for them in their bid to compete for the Champions League title.
Kylian Mbappe‘s controversial contract renewal has raised many eyebrows. The Spanish and Italian leagues expressed their unease and in the case of LaLiga, they will file a complaint to investigate whether the operation complies with the financial regulations of UEFA and Ligue 1.
Far from casting doubt on the renewal, Ligue 1 president Vicent Labrune hit out at Javier Tebas and questioned his intention to investigate it.
“We wish to express in the strongest terms our disapproval, but also our incomprehension, at his latest attacks against Ligue 1 and one of our clubs,” he said.
And it is precisely in France that the greatest inequality occurs. According to figures provided by L’Equipe, PSG have 18 of the 20 highest salaries in the league.
PSG’s overwhelming dominance in their league is beginning to spread to the rest of Europe. In fact, with the signing of Erling HaalandManchester City now own the two highest paid players in the Premier League including Kevin De Bruyne.
Top 10 salaries (gross)
- Mbappe (PSG): 100m
- Neymar (PSG): 49m
- Messi (PSG): 40m
- Haaland (City): 40m
- De Bruyne (City): 40m
- Cristiano (United): 31m
- Hazard (R.Madrid): 30m
- Benzema (Real Madrid): 24m
- Lewandowski (Bayern): 23m
- De Gea (United): 23m
Pep Guardiola’s arrival at Manchester City turned the team upside down due to a financial investment of 1.119 billion euros.
More than 400m euros were invested in defenders such as Nathan Ake (45m), Danilo (30m), Nicolas Otamendi (55m), Joao Cancelo (65m), John Stones (55m), Aymeric Laporte (65m), Benjamin Mendy (57m), Kyle Walker (52m) and Ruben Dias ( 68m).
Meanwhile, PSG went for Neymar and Mbappe before snatching the captains of Real Madrid and Barcelona with offers that their clubs could not match.
Outside the top five
Despite spending big, both teams are still far behind the traditional European powers. According to a Forbes report, real Madrid are the richest team in the world ahead of Barcelona. Despite the crisis and the departure of some of their stars, the two Spanish teams continue to lead the rankings.
Meanwhile, Leo Messi‘s arrival increased PSG’s merchandising revenue by 60 percent and Man City’s products already outsell those of their neighbours, Manchester United.
Most valuable teams in the world (Forbes)
- Real Madrid: 5.1 billion euros
- Barcelona: 5.1b
- Manchester United: 4.6b
- Liverpool: 4.45b
- Bayern Munich: 4.27b
- Manchester City: 4.25b
- PSG: 3.2b
- Chelsea: 3.1b
- Juventus: 2.45b
- Tottenham Hotspur: 2.35b
A new front?
In the meantime, a Saudi-backed consortium has purchased Premier League club Newcastleconverting the Magpies into the richest club in the world.
“It’s a game-changer for us,” co-owner Amanda Staveley said after the takeover.
“I hope it’s going to be a game-changer for Newcastle United but we also don’t want to make promises we can’t keep. I don’t want to say we are going to be top of the Premier League in three years . I would love that.”