French football club PSG prepare for a summer revamp
PSG: changing guard, changing business model
The GOAT era at Paris-Saint Germain is drawing to a close. Having assembled the highest paid team in football history, the superstar lineup is breaking up.
Argentina’s World Cup winning captain Lionel Messi looks set to be the first to quit the Qatar-owned team. He was recently suspended and fined for missing training — instead hopping over to Saudi Arabia, where he is a tourism ambassador. He may end up becoming a more permanent resident, with Riyadh-based Al-Hilal one of his potential next destinations. Barcelona and Inter Miami are both also in the mix.
Brazilian forward Neymar, still the most expensive signing in football history, is expected to follow Messi through the exit, with other high profile — and high paid — departures likely to follow.
France’s most successful club is in transition, and hopes to replace some outgoing players with talent from its youth academy — a way to cut costs and reconnect with the increasingly disgruntled fans.
Uefa’s new spending rules have helped force PSG’s hand. Starting next season, clubs competing in European competitions must limit spending on players and coaching staff to 90 per cent of revenue, a figure that will gradually drop to 70 per cent.
Across Europe, PSG is the club most in need of belt tightening. The wage bill hit 109 per cent of revenue last year, according to figures from data provider Football Benchmark.
In return, the club is on track to win another French title — its 9th under Qatari ownership — but failed to reach the quarter finals of the Champions League. Stars have come and gone, but victory in football’s top club competition has remained elusive.
The overhaul at PSG has major implications for French football. According to estimates from sports intelligence provider Twenty First Group, PSG’s chances of winning the league next season drop from 59 per cent to 42 per cent without Messi and Neymar. That introduces a level of competitiveness sorely lacking in Ligue 1, making it more exciting and potentially boosting interest over the long-term.
However, PSG is the only French club with global reach and household names on the team sheet. Just as Ligue 1 puts its broadcast rights out to tender, French football is about to lose some of its greatest marketing assets.
The exodus also raises questions about PSG’s plans to raise new capital. The Qatari owners have been in talks to sell a stake in the club since last year, with a target valuation of over €4bn.
The club still doesn’t own its stadium, and with a dwindling roster of big brand players, investors might wonder what exactly they are buying into.