Ligue 1: How Paris Saint-Germain avoided financial losses: Selling players, support from Qatar, increase in capital…

Ligue 1 Would have had losses of over 100m euros

Nasser Al-Khelaifi, PSG’s president.
AFP

French giants Paris Saint-Germain closed the 2017/18 season with a positive financial balance of 31,510,000 euros, the best numbers that they have ever produced.

There had been the worry that PSG could face possible sanctions from UEFA in relation to Financial Fair Play (FFP), yet they miraculously closed out the campaign in the black.

Those figures came from the National Directorate of Management Control (DNCG), however the PSG accounts would have been in the red but for financial support from Qatar and some player sales, according to Palco23, an economic newspaper that specialises in economic information and sports.

In fact, Palco23 ensure that PSG would have ended the season with a loss of 101,250,000 euros if it was not for these two factors.

The reason for these numbers is due to their exorbitant wage bill and the lofty transfer fees that they have paid during Nasser Al-Khelaifi‘s presidency.

During the 2017/18 campaign, PSG paid a total of almost 500m euros on salaries in salaries and debt repayments, with 343.25m euros being the wage total and 147.68m euros going towards money that they owed.

According to Palco23, PSG intend to lower the debt of the club with the Qatar Sports Investment (QSI) group extending the share capital of the club to 316m euros.

They did this in December 2017, though that did not dispel many of the doubts surrounding their finances, so they resorted to selling players in both transfer windows – January and summer – in 2018 to improve their economic health. Therefore, in these two periods, they sold Lucas Moura, Javier Pastore, Yuri Berchiche and Odsonne Edouard.

Like any business, it is not sustainable for PSG to continue to rely on the QSI to help them out, given that they have already invested 1.35 billion euros since purchasing the club in 2011.

Therefore, it is necessary for the Parisians to increase their turnover, which rose by 11 percent in 2017/18 to 535.8m euros and was mainly due to the arrivals of Neymar and Kylian Mbappe. Related to this, PSG sold more than 800,000 shirts, 80 percent more than the previous year.

Ligue 1: How Paris Saint-Germain avoided financial losses: Selling players, support from Qatar, increase in capital…

Ligue 1 Would have had losses of over 100m euros

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