Somehow, after submitting a disastrous financial report for their past few seasons and enduring the heaviest financial losses for three years, PSG will still be safe and within the boundaries of the Financial Fair Play, Le Parisien reported on Monday.
This news, seemingly confirmed by the French newspaper, mean that PSG will have "no limits" to keep spending money wildly from next summer until 2026 when things will their accounts will be re-evaluated after another three-year period.
PSG reported a monster €717m in losses over the last three seasons, which obviously was something expected to put Paris Saint-Germain in peril of not having a lot of money available in future transfer windows.
Now, all of a sudden, things look good on the financial front with PSG cleared to keep their spending spree going until 2026 after making it to the good-guys club under the FFP rules. Did Nasser Al-Khelaifi work some magic?
According to the new rules of the FSR (Football Social Responsibility, the new name of Financial Fair Play), European clubs must not exceed €60m in losses over three years. PSG crafted an interesting plan to dodge this bullet, losing all of that money in the first year (the ongoing 2022-23 season) and then earning a profit for the next two seasons in order to avoid any potential trouble.
The club's revenue streams are growing strongly, according to projections presented by PSG financers to UEFA. They expect the numbers to increase by more than 20% this season to reach the record amount of €800m next year.
According to a study published by Deloitte in January, PSG also led all European clubs with €132m in revenue in 2021-22, even with the limitations that playing at a tiny stadium like the Parc des Princes imposes on the team.
The accounts are healthy, but PSG might try to unload the wages of Lionel Messi and Neymar
Paris Saint-Germain don't want to sleep on their laurels, though, and might explore the departures of both Lionel Messi (not extending his contract past June 2023) and Neymar (selling him to anyone interested). That would lower the wage bill incredibly for the PSG organization.
Another interesting nugget revealed by Le Parisien has to do with Kylian Mbappe. When he extended his deal with PSG, Mbappe inked a €180m signing bonus to be paid to him in three installments. However, the full amount was already accounted for in 2022 and won't factor into the 2023 balance sheet. This will, therefore, allow PSG to overcome an important hurdle under the new FSR regulations.
All of this is to say what you were thinking about from the get-go: PSG will be able to burn as much money as they want during the next transfer window and beyond without constraints. The club doesn't want to fall below the red line as soon as June, but you know what's coming. Cazzzzzzh, baby.
On the positive (for the accounts) side of things, PSG is nonetheless expected to try to unload lesser and forgotten players such as Icardi, Paredes, Draxler, and Wijnaldum, who all are currently playing on loan across Europe but will return to Paris next summer.
Expect rumors, transfers in, transfers out, loan deals, new managers, etc... In other words, expect just your old flashy Paris Saint-Germain, no matter what the brass says.