Neymar and financial fair play

Sports lawyer Daniel Geey discusses how the signing of Neymar by Paris Saint-Germain relates to financial fair play (FFP) rules.

The FFP rules were revised in 2015, so clubs must show that they do not have losses of more than €30m over a three year period, although spending on stadiums and youth development are exempted.  Javier Tebas, La Liga president, believes the Neymar deal would breach FFP.

Sports lawyer Daniel Geey discusses how the signing of Neymar by Paris Saint-Germain relates to financial fair play (FFP) rules.

The FFP rules were revised in 2015, so clubs must show that they do not have losses of more than €30m over a three year period, although spending on stadiums and youth development are exempted.  Javier Tebas, La Liga president, believes the Neymar deal would breach FFP.

Yet under the rules, PSG would not book the transfer fee up front but account for the deal over the length of the contract.   PSG has several years to raise the revenues required to fund the acquisition.  For example, they could sell players for significant sums.

PSG could also raise money via new commercial deals, such as Neymar endorsements.  There were long queues yesterday at PSG’s shop to buy Neymar shirts.

PSG are yet to appear in the Champions League semi-final.  If Neymar can lead them into the final stages, they would receive increased prize money and broadcasting income.