Paris Saint-Germain’s excesses are just too great to be healthy

PARIS Saint-Germain look set to lose Kylian Mbappé this summer to Real Madrid, but the enormous wealth of the French champions means they will surely replace the young striker with another high profile signing. PSG’s financial advantages have brought them a multitude of top names and they currently have Neymar, Lionel Messi and Mbappé, but with their resources, PSG should be winning everything in France and challenging in Europe.

Their wage bill was € 500 million in 2020-21, around one third of the overall Ligue 1 total and more than € 350 million more than the nearest rival, Olympique Lyonnais, whose wages came to € 134 million. In 2020-21, PSG were beaten to the Ligue 1 title by Lille, whose player remuneration was around one sixth of the sum paid to the Parisians’ squad.

PSG’s finances make them the ultimate flat-track bully, but when they compete in the UEFA Champions League, they are found wanting almost every time. PSG’s problems stem from a lack of continuity around the management of the team and a culture of short-termism. Like Chelsea, their squad is a composition of various influences and they also have a penchant for attention-catching signings. Hence, the arrival of Messi and, for some peculiar reason, Sergio Ramos, both players past their prime, but undoubtedly enormously expensive.

The latest report from France’s DNCG (National Directorate of Control & Management), reveals French football was heavily impacted by the covid-19 pandemic in 2020-21. Only three clubs – Dijon, Reims and Saint-Étienne – made a profit and some of the losses were very eye-watering.

PSG’s loss, despite revenues of € 569 million (+2%), was € 225 million, the highest in France by some distance and the third highest in Europe after Barcelona (€ 550 million) and Inter Milan (€ 239 million). After PSG, whose losses climbed by € 100 million, the biggest loss in France was made by Lyon (-€ 109m), Marseille (-€ 76m) and Bordeaux (-€ 67m).

Like all French clubs, PSG’s matchday income was almost wiped out, but their bottom line figure was also influenced by a big reduction were in player trading which was down from a € 50 million profit to a near € 5 million loss. Profits on player sales are less important to PSG than rivals Monaco, Lyon and Lille, for obvious reasons, but there is clearly upside for the club if they choose to adopt a more commercial approach to transfers.

The club also incurred an increase in their already huge player costs. PSG’s wages were up by 21% to € 503 million in 2020-21, a wage-to-income of 88%.  According to L’Equipe, of the top 20 earners in French football, 18 are from PSG, with only Monaco’s Wissam Ben Yedder and Cesc Fabregas making up the list. The DNCG is keen to control the excesses of PSG, needless to say, and aims to stop any club having a wage bill of more than 70% of income. Another measure in progress is the restriction of debt, forbidding any club from having debt greater than share capital.

Broadcasting recovered in 2020-21 after the collapse of Ligue 1’s deal with Mediapro. Overall, TV accounts for 43% ( € 835 millon) of Ligue 1’s income and PSG generated over £ 200 million from this stream, a 54% rise on 2019-20. PSG have become very proficient commercially and their income totalled € 337 million. However, they are striving to push the envelope even further and hoped the acquisition of Messi would provide a significant boost.

Ligue 1’s total income was € 1.6 billion, but € 1.2 billion was paid out in wages and another € 119 million to agents and intermediaries. The league lost € 645 million, the total for Ligue 1 and 2 was a deficit of € 685 million.

PSG could be at the start of a new phase. The restrictions to be implemented will make it more difficult for the club to leverage its financial power and at some point, they will have to look at the way they build their teams. There’s also a good chance manager Mauricio Pochettino will move on and, with Mbappé and Ángel Di María certainly leaving, along with the possible departure of Neymar, times may be changing in Paris.

At the same time, France needs greater competition to improve the overall quality of Ligue 1. The country produces very good players on a regular basis, the national team are world champions and UEFA Nations League winners, but PSG are not always pushed enough. They’re still waiting for that first Champions League title, after all.

UEFA Europa League: Barcelona hit form at the wrong time for West Ham

WEST HAM United’s 2-0 victory over Sevilla was an old fashioned European night, the kind the Boleyn Ground used to host so well on the rare occasions the Hammers qualified for the long departed Cup-Winners’ Cup. In 1975-76, clashes with the likes of Den Haag and Eintracht Frankfurt produced a marvellous, memorable atmosphere and the sound of “bubbles” rang out in the cold East London air. In some ways, the London Stadium, which has been criticised for having a somewhat empty feeling, announced its arrival against Sevilla.

West Ham have enjoyed their European run this season and they now figure among the favourites to lift the Europa League trophy. They have been drawn against Lyon, an underperforming side who have also saved some of their best moments for the competition. Their two-legged win against Porto was an achievement and they actually won five of their six group games. 

West Ham have, if anything, punched above their weight this season, but following on from 2020-21, when they finished in sixth position, their performance suggests they have moved up a step in the hierarchy. They should have enough to get past Lyon, but they could then come up against Barcelona, who were sent into Europa exile after failing in the Champions League. 

A few months ago, Barcelona would not have kept West Ham boss David Moyes awake at night, but in recent weeks, the club seems to have regained its confidence and found some form. Their 4-0 victory at Real Madrid was a stunning result and demonstrated they are on their way back after a miserable end to 2021. New signings Ferran Torres (Manchester City) and Pierre-Emerick Aubameyang (Arsenal) have settled in well and have scored 15 goals between them.

Barcelona face Eintracht Frankfurt in the quarter-finals, no easy draw, but the Blaugrana have not been beaten in the league since early December. Frankfurt are in eighth place in the Bundesliga and have beaten Bayern in Munich, so they will be a tough opponent for Xavi’s team. Curiously, West Ham fans were set upon by their Frankfurt counterparts in Seville, when the Hammers were in town to face Sevilla and the German side playing at Real Betis. It’s not hard to imagine what could happen if West Ham have to travel to the Deutsche Bank Park stadium for a semi-final game.

Barcelona, however, will be determined to win the Europa League to ensure a path back to the Champions League. This is important not only for the financial benefits of being involved in the premier competition, but also to erase the humiliation of their early elimination from the Champions League. As for West Ham, they will be desperate to win something for the first time in 41 years and also rubber-stamp their elevation to European club status.

But there are other contenders and Lyon are also among the clubs that could win the competition this season. RB Leipzig, for all their spectacular progress, have never won a trophy, so you could argue they are due some material success. Similarly, Atalanta, who have joined the Serie A upper bracket in the past couple of years, could also do with some silverware to provide affirmation of their rise. Braga and Rangers are two of the more unfancied sides in the draw, but in this half of the quarter-final draw, any team could go all the way to the final. Rangers have had some good nights in the Europa this season, beating Borussia Dortmund and Red Star Belgrade in the knockout phase. Braga, who beat Monaco in the round of 16, finished second to Red Star in their group. They are currently fourth in the Portuguese Primeira Liga, while Rangers are in a battle to regain the Scottish Premiership title they won in 2021.

The field is wide open, but GOTP’s prediction is a last four of West Ham v Barcelona and Leipzig v Rangers, with the final on May 18 in Sevilla being contested by Barcelona and Leipzig. On the other hand…