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Home›Principal-Agent Theory›Real Madrid CAN pay money to Kylian Mbappe despite pleading poverty

Real Madrid CAN pay money to Kylian Mbappe despite pleading poverty

By Terrie Graves
August 25, 2021
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After three years of savings for him, Real Madrid believe they can afford their £ 137million offer for Kylian Mbappe.

But after £ 257million was wiped out of their earnings by the pandemic, it still seems thoughtless to the extreme that, just months after pleading poverty as they groomed for an escaped European Super League, they are paying for a player who will be able to trade as a free agent in just four months.

It was in April this year when Real Madrid president Florentino Perez said football would be dead without a new competition he and eleven other clubs would run and be life members.

Real Madrid have stepped up their pursuit of Paris Saint-Germain striker Kylian Mbappe

Real president Florentino Perez always believed that some players pay for themselves

PSG owners are hard to guess - PSG President Nasser Al-Khelaifi pictured

Real boss Florentino Perez (L) will negotiate with PSG president Nasser Al-Khelaifi (R)

This dramatic claim has always been a gross exaggeration, but the pandemic has ravaged Madrid’s accounts and they are struggling to cope with the unlimited wealth of clubs funded by energy-rich nation states.

So why give them money when patience will deliver Mbappe with no transfer fees?

It’s the contradiction that left Real Madrid fans wondering if their club were preparing before Mbappe’s capture for free next summer, or if they were really serious about getting into debt for someone Perez still has. believed would have the same effect on and off the pitch at the Bernabeu as Cristiano Ronaldo.

Madrid have barely made a net spend in recent seasons. This summer they cashed Martin Odegaard at Arsenal and Raphael Varane at Manchester United while avoiding the salary burden of keeping Sergio Ramos.

Last summer they sold Sergio Reguilon and Achraf Hakimi as they went through their first closed season window without a single signing for the first time in 40 years.

They are not in the dire situation Barcelona find themselves in and are not under any of the pressure La Liga has put on Barcelona to reduce their payroll, which has made it impossible for them to keep Lionel Messi.

But they have always been affected by the huge effect of the pandemic on football tourism and match day income. The players suffered a 15% pay cut last season and are currently negotiating individually to defer payments this campaign. So why pay PSG when they don’t have to?

This SofaScore graph shows Mbappe's incredible PSG stats since joining them in 2017

This SofaScore graph shows Mbappe’s incredible PSG stats since joining them in 2017

Ex-Real star Cristiano Ronaldo has been linked with PSG which could impact Mbappe's future

Former Real star Cristiano Ronaldo has been linked with PSG which could impact Mbappe’s future

Perez always believed that some players pay for themselves. This is an exaggerated theory. No matter how many Lionel Messi jerseys PSG sell, he won’t pay his salary. And for every fan who buys number 30, many will do so instead of buying another number. Still, the increased revenue from merchandising and sponsorship offsets some of the cost of a great signing.

It has been suggested in Madrid that Perez wants Mbappe for the Santiago Bernabeu grand reopening next month.

But while Madrid are likely to allow fans to return to their arena for Celta Vigo’s visit on September 11, only 40,000 will be allowed in due to ongoing Covid restrictions and the unfinished stadium remains a building site and will do any work. the season.

Wouldn’t it have more of an impact if the pitch, due to be completed in December 2022, hosts Mbappe’s unveiling next summer when it’s almost done?

There is a feeling in Madrid that the club made the offer knowing how things are going to go from now on.

Real boss Carlo Ancelotti could one day lead Mbappe

Mauricio Pochettino dreamed of unleashing Mbappe, Neymar and Messi this season

Carlo Ancelotti (L) could lead Mbappe instead of Mauricio Pochettino (R)

Either they were sure he would be rejected, in which case they look good to try and patience will be granted while waiting to bring him in next season. Or they know the Qatari club will reject the first offer but ultimately give in to a higher offer.

It was reported on Wednesday morning that PSG “are considering selling Mbappe in sensational move to Real as he names his price at £ 171million”.

It’s hard to guess the owners of PSG. Do they really want to win the Champions League? If so, selling Mbappe decreases their chances and strengthens one of their direct rivals.

Or is it the real obsession with becoming the club everyone is talking about? If that’s the priority, then getting a huge fee for a player who is only one year old and signing another huge signing will accomplish the same goal.

Perez always believed Mbappe would have the same effect on and off the pitch as Ronaldo

Perez always believed Mbappe would have the same effect on and off the pitch as Ronaldo

Where would Mbappe’s potential £ 171million move in the biggest transfers of all time be?

1. Neymar: £ 198million – Joined PSG from Barcelona

2.Kylian Mbappe: £ 171million – Potential fees to join Real Madrid from PSG

3. Mbappe: £ 166million – Joined PSG from Monaco

4. Philippe Coutinho: £ 145million – Joined Barcelona from Liverpool

5. Joao Felix: £ 114million – Joined Atletico Madrid from Benfica

6. Antoine Griezmann: £ 108million – Joined Barcelona from Atletico Madrid

7. Jack Grealish: £ 100million – Joined Manchester City from Aston Villa

They laughed at financial fair play and regardless of Madrid’s payout, around £ 30million will go to Monaco, so money is unlikely to motivate Qatar Sports Investment’s decision.

The third main actor of the soap opera is Mbappé. He showed up for training this morning at 10.30am sharp and his teammates have said privately that he has no plans to publicly state that he wants to join Madrid this summer.

Turning down three new contract offers – the latest for £ 31million per season – has already put him on the bad side of many PSG fans.

If he spoke publicly about Madrid and the deal didn’t happen this season, it would be extremely uncomfortable for him.

It is clear that he wants to become the new Ronaldo. He had a photo of him on his wall as a kid and moving to Madrid would emulate Cristiano who was introduced to a full Santiago Bernabeu in July 2009.

Oddly enough, the deal came just days after Madrid made public that they were negotiating with Manchester United.

On Tuesday night, the club were also keen to confirm that they had made an offer for Mbappe.

It has all been very public – the coming hours will reveal if this was for the gallery or for real.


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