Due to fears of facing additional Financial Fair Play (FFP) violations, PSG has postponed contract negotiations with Lionel Messi and Sergio Ramos. For violating UEFA’s Financial Fair Play (FFP) regulations in the 2020-21 season, PSG was one of ten clubs fined. They paid a €10 million fine and had €45 million suspended pending future accounts, with additional sanctions remaining a possibility.
PSG has been reporting record losses in recent years, with their latest financial report revealing losses of €370m. Given that Messi and Ramos are among the highest-paid players at the club, and with both their contracts expiring this summer, PSG faces difficult financial choices.
The possible sanctions that PSG could face for FFP violations include being unable to register any new players to their European squad for next season. Also a reduction in the size of their registered squad for European competitions from 25 to 23.
According to Diario AS, there is also a remote possibility that the club could face expulsion from European competition altogether. However, this would only occur by the 2024/25 campaign, as a consequence of continued losses during that time. Therefore, PSG needs to significantly reduce its wage bill in the interim.
Why is it difficult for PSG to secure the services of Messi and Ramos?
Before PSG secured Kylian Mbappe’s three-year contract extension last summer, Messi was the world’s highest-paid player. During his first year in Paris, the Argentine earned an annual salary of £25.5 million (€30m), which rose to £34 million (€40m) for the current and final year of his two-year deal in Paris. Reports suggest that Messi has earned over €1,000 million throughout his career, making him the highest-earning player in history.
Similarly to Messi, Ramos’ contract is also set to expire this summer. Despite impressing in PSG’s recent Champions League campaign, the 36-year-old defender may be moved on. Because the club intends to sign Milan Skriniar from Inter and Pau Torres from Villarreal. Unless Ramos agrees to a significant wage reduction, it is possible that he will not be retained by the club.
L’Équipe has reported that PSG is interested in retaining Messi and Ramos, with informal discussions already underway. However, the club’s current FFP situation and the threat of sanctions may prevent them from offering new contracts to the two players.
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