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News: PSG seeks 75 million to comply with the financial 'fair play'.

News: PSG seeks 75 million to comply with the financial 'fair play'.
13 Nov 2017

Investigated by UEFA after the signings of Neymar and Mbappé, Parisians have a plan to balance their budget
In Paris they calculate to have a regular income of 550 million euros, while the expenditure would shoot up to 620 million

In the PSG offices, an ambitious project has been launched to collect 75 million extra euros before the end of the season, with the aim of balancing its budget with respect to financial fair-play regulations.

In the spotlight of UEFA since September 1, after the denunciation of several of the most powerful clubs in Europe, the PSG knows that if it does not achieve this budgetary balance it can be seriously penalized, even excluded from European competitions, something that could demolish the dreams of greatness of Nasser al-Khelaïfi, whose main plan is to turn the Parisian group into one of the great ones of the continent.

UEFA has opened an investigation into the accounts of PSG this season, after the historical signings of Neymar (222 million euros) and Mbappé (145 million, plus 35 in bonuses), which would place the club's budget around the 620 million euros. In contrast, the income forecast is between 540 and 550 million euros, according to L'Equipe.

A difference that forces the leaders of the Parisian club to find formulas to balance the budget and deposit extra money into their account, either by selling players or by renegotiating sponsor contracts.

In this second area, the plan of the PSG is clear: with the arrival of Neymar and Mbappé, the team has made a qualitative leap not only in sports, but in its global image and, therefore, sponsors must rethink their contribution to the boost if they want to continue sharing image with the Paris club.

Negotiate with sponsors

First is the American multinational Nike, which dresses the team and contributes 25 million per season to the club, with a contract that ends in 2022. The PSG is already renegotiating the agreement and the talks are moving forward in a positive way. The fact that Neymar is also a footballer linked to Nike facilitates the operation. The PSG wants to increase its cache to 40 or 50 million euros per year, according to L'Equipe, which could be achieved by extending the duration of its relationship with Nike.

The other main sponsor is Emirates, with a contract until 2019. Emirates also contributes a fixed annual fee of 25 million to the club and PSG wants to double that quota. With the other sponsors of the club, who end the contract in 2018, there will also be a renegotiation. Especially with the Orange telephone company, which is interested in continuing to be linked to the image of the club. The other sponsor, PMU, hesitates to continue with the relationship and most likely does not continue beyond 2018.

Merchandising and ticket sales

As for merchandising, the increase in income is already a reality. After the slowdown suffered in the last season, the arrival of Neymar has revitalized this sector. On the first day alone, the club sold 11 thousand Neymar shirts and currently they sell between eight and nine thousand a week. Of the 37 million admitted last year, it is expected to achieve revenues of between 45 and 50 million euros in the current campaign.

The sale of tickets is another of the pillars of this fundraising operation of the club. Last year the PSG entered 90 million for the sale of tickets and this year expects to reach 100. For that to occur the team should reach, at least, the semi-finals of the Champions League, which would allow the club to market two more parties at high prices.

Television rights and Champions League

As for television rights, the PSG has a fixed 60 million, which will add another 10 million if the Monaco does not exceed the group stage of the Champions League, which both clubs would have had to share to follow the Monegasque ahead. But it is in the European competition where the PSG has set its hopes, and exceed the 100 million entered last season with 30 million more, if he manages to play and win the final of the Champions League, his great sporting goal.

Finally, in his business plan is also taken into account that the team's cache has risen and on tour the club expects to enter between 3 and 15 million more than it did the previous season.

An ambitious and difficult plan for the Parisian club to balance its budget, without violating the financial fair play, but not impossible if the ball plays in their favor.

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