PDF Archive

Easily share your PDF documents with your contacts, on the Web and Social Networks.

Share a file Manage my documents Convert Recover PDF Search Help Contact



Neymar Deal .pdf


Original filename: Neymar Deal.pdf
Title: NeyMAr jr to PSG the finances behind transfers
Author: Mohnish Narlanka

This PDF 1.7 document has been generated by Microsoft® PowerPoint® 2016, and has been sent on pdf-archive.com on 08/08/2017 at 05:04, from IP address 73.221.x.x. The current document download page has been viewed 546 times.
File size: 400 KB (5 pages).
Privacy: public file




Download original PDF file









Document preview


NEYMAR JR TO PSG
THE FINANCES BEHIND THE TRANSFER
B Y, M O H N I S H N A R L A N K A

THE TRANSFER MARKET
• Soccer leagues are unique labor
markets with highly concentrated
“realistic” buyers for top talent such as
Neymar, Pogba, Ronaldo, or
Griezmann. Deep coffers are required
to pay multi million euro transfer fees,
as well as offer players lucrative weekly
wages
• On the sell side, clubs know that they
can often lock these buyers into a
bidding war raising the value of their
player’s transfer fees
• Transfer fees are not paid to players
but rather clubs, and in Spain where
buyout clauses are mandatory, these
fees are payed to La Liga who oversee
distribution to individual clubs

2.11x

2.36x

2.22x

Record Transfer Fees in Millions of Euros
Neymar Junior
Gareth Bale
Cristiano Ronaldo
Paul Pogba
0
Transfer Fee

Paul Pogba
105

50

100
Cristiano Ronaldo
94

150
Gareth Bale
100

200
Neymar Junior
222

250

Comparable Summer Transfer Budgets

HOW WILL PSG PAY?
Arsenal (1) – € 220 million
• UEFA’s Financial Fair Play ruling requires clubs to
balance soccer related expenditures such as
wages/transfers with TV/ticket income as well as
commercial sponsorship revenue. Losses cannot
exceed €30 million over 3 years

Bayern Munich (2) – € 100 million

• PSG is owned by Onyx Qatar Sports Investments,
an arm of The State of Qatar and has been
accused of financial “doping”
• In 2014 PSG used a €125 million “sponsorship”
deal with the Qatar Tourism Authority (QTA) to
balance out their books. It was revealed this
sponsorship was overvalued and PSG was fined
• Although Barcelona has demanded the transfer
fee of € 222 million to be paid upfront, UEFA
allows PSG to amortize this value over the course
of Neymar’s 5 year contract

• While paying Barcelona up front they will be
recording the fee at roughly € 44 million a year
over 5 years, which is easily offset by transfer
revenue from selling players as well as further
“sponsorships”

AC Milan (3) – € 150 million

AVG TRANSFER FEES PER SEASON IN
MILLIONS OF EUROS*
14
12

10
8
6
4
2
0

Source: Transferleague.co.uk *: Average Transfers in The Premier League

IS NEYMAR C ASHING OUT?
• Neymar will be paid roughly €31 million in wages
a year after taxes. This equates to roughly
€573,505 in net income per week
• These figures exclude his sponsorship deals, and
other commercial ventures. By entering a new
market it is inevitable he will be able to secure
new sponsors. He faces less competition in
marketability as he has to compete with fewer
superstars in Paris
• Prior to his new contract, Neymar was the only
soccer player who made more from endorsement
deals than wages. His largest sponsor Nike, has
signed him to a € 97.2 million deal over 11 years.
• He currently nets € 19.88 million a year from
endorsement deals alone

Neymar’s old Barcelona contract had been reported
to be in the region of €165,700 after taxes per week
Barcelona had to pay a reported 52% tax on these
wages in Spain meaning Neymar cost the club about
€ 251,864 per week

246%
Neymar’s after tax wage increase since signing his
new contract with PSG excluding endorsements,
and performance/tournament related bonuses

APPENDIX

(1) http://metro.co.uk/2017/04/12/arsene-wenger-to
be-given-200m-transfer-budget-by-arsenal-6569522/
(2) http://www.sportbible.com/football/news-bayernmunich-to-spend-100-million-on-five-players-thissummer-20170514
(3) http://www.tribalfootball.com/articles/ac-milanprepare-150m-summer-transfer-budget-4180017
http://www.financialfairplay.co.uk/latest-news/parisst-gemain-find-%E2%82%AC125m-to-help-thembreak-even
https://www.theguardian.com/football/2017/aug/02/p
sg-200m-neymar-barcelona-financial-fair-play
http://www.espnfc.us/paris-saintgermain/story/2936608/paris-saint-germain-to-valueqta-contract-at-175m-euros-report
http://www.uefa.com/community/news/newsid=2064
391.html
https://www.thesun.co.uk/sport/football/4153401/ne
ymar-net-worth-contract-sponsorship-deals-nike/


Related documents


neymar deal
footy
fboaward menplayer2015 neutral
yizhou hao egetn
december2016
9 8 16 steven naismith cv


Related keywords