Why are PSG clearing out the squad – FFP Rules Explained!

Over the past couple of days, we have seen a couple of high profile departures from Paris Saint-Germain. With players such as Blaise Matuidi and Jese Rodriguez being shipped out as well as Julian Draxler being told he is surplus to requirements, PSG are cleaning out the closet. Could it be to do with Financial Fair Play (FFP)?

FFP Rules

The FFP Rules were originally brought in after European football clubs all voted unanimously in favour of the restrictions in 2009. The aim of the new rules was to stop football clubs from spending beyond their means after more than 50% of the clubs around Europe declared a substantial loss the year before.

This meant around 655 clubs in Europe were spending more than they made with around only 20% of them wealthy enough to withstand substantial losses year on year. As a result, there were a lot of clubs around Europe in genuine financial peril.

To comply with FFP Rules, all clubs must spend no more than the budgetary restrictions imposed by UEFA over a three year assessment period. For last season (2016/17), clubs were allowed to spend no more than £45 million over the amount the club earns. For this season (2017/18), the amount has been reduced to £30 million.

If the clubs do in fact go over these amounts set and break FFP Rules, they sanctions UEFA can impose include disqualification from UEFA tournaments, transfer embargoes and large fines. We have also seen UEFA force clubs to reduce their squad size for the Champions League for one season only.

Why does this apply to PSG? 

Simply put, it’s because of Neymar. By now we are all aware that PSG smashed the world record transfer fee when they activated Neymar Jr’s £200 million release clause. Although it was a very shrewd piece of business, it has plunged PSG into significant losses for this UEFA monitoring period.

Due to this deal, PSG are now forced to sell some of their assets to make sure the club isn’t at a loss of any more than £30 million when this current assessment period finishes at the end of the season. This is why we have seen Blaise Matuidi head to Juventus for £18 million and Julian Draxler told he can leave – reports suggest he will fetch a fee of around £32 million. In addition to this, they sent Jese Rodriguez out on loan to Stoke with an option to buy as well as shipping out Jean-Kevin Augustin to RB Leipzig for £11 million.

These deals and the sales of other players over the past two seasons will help PSG get toward their financial goals and avoid any FFP sanctions. We just hope that they manage it and avoid any significant punishment as they look to solidify themselves as a European footballing heavyweight.

What do you think of PSG’s dealings? Let us know in the comments section below.

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