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Apr 30, 2014

Reports: UEFA to devalue PSG deal

Manchester City and Paris Saint-Germain are expected to be the highest-profile victims of UEFA's financial fair play rules, but are unlikely to be banned from European competition.

Paris Saint-Germain will have to make up a huge budget deficit next season if a sponsorship deal with the Qatar Tourism Authority (QTA) is devalued by UEFA’s club financial control board (CFBCB), according to reports.

PSG president Nasser al-Khelaifi welcomes the club's rivalry with Monaco.
Nasser Al-Khelaifi has been the club's president since the Qatari takeover in 2011

Laurens: Cavani future unclear
Johnson: New deal for Blanc?
Marcotti: Making sense of FFP

PSG and Manchester City are among a number of clubs who have been offered settlements for breaching financial fair play (FFP) rules.

UEFA's CFBCB has made offers to all the clubs deemed to have breached the rules ahead of its meeting on Thursday.

PSG's sponsorship contract is thought to be worth 200 million euros a year, but both Le Parisien and RMC report that -- in an investigation into compliance with financial fair play (FFP) rules -- UEFA will value it at only half that sum.

Any such move would result from concerns that the QTA paid over the odds to help out a club with which it has very close links. Both the QTA and Qatar Sports Investments, the owners of PSG, depend on financing from the state of Qatar.

Le Parisien suggests that UEFA’s revised valuation of the deal would see the French champions’ deficit for the 2013-14 season reach 107 million euros -- more than double the 45 million euros allowed under FFP regulations.

Both Le Parisien and RMC say that European football’s governing body may punish PSG by taking a cut of several million euros from the club’s declared marketing budget.

However, both French media outlets say that the Ligue 1 leaders are unlikely to face further sanctions when UEFA announces its findings in the coming days. RMC cites a UEFA source as saying that PSG and Manchester City were never in danger of being excluded from the Champions League because such clubs allow UEFA to generate more revenue.

In light of impending sanctions -- and PSG’s improved performances this season -- the club have been exploring ways to increase their revenue.

Le Parisien reports that new sponsorship deals with Nike and Emirates will bring in 40-50 million euros. Worth three times more than the previous deals, they will come into effect on July 1.

An enlarged VIP section in the Parc des Princes will also help, according to Le Parisien, although the club are also likely to seek to reduce a massive wage bill thought to be worth around 220 million euros. 

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