Five hundred million Euro, the cost of Mbappe’s move to Real Madrid

Five hundred million Euro, the cost of Mbappe’s move to Real Madrid

Real Madrid have been getting ready for the signing of Kylian Mbappé for several years. The club’s accounts are in a healthy condition and will allow them the luxury of having one of the best - if not the best - players on the planet on their books.

Los Blancos will, of course, not have to pay Paris Saint-Germain a transfer fee, but will instead have to pay the France captain a significant signing-on fee, as well as an eye-watering salary over five years. In total, taking Mbappé to Spain will cost them around €500 million (almost $540 million) during that period.

Madrid have €128 million ($138 million) currently in the bank, along with €265 million ($285.6 million) in credit, while they reduced their wage bill by €78 million ($84 million) in the last completed financial year. The LaLiga giants also expect to make around €317 million ($341.2m) per season in revenue from Estadio Santiago Bernabéu once it has been completely redeveloped, more than double what it currently earns €150 million ($161.7m). No stone has been left unturned to ensure the finances are in place to sign Mbappé.

Real Madrid has become a huge business. As of 30 June 2023, the club declared it had 1,072 employees. The ECA (European Club Association) introduced a rule prohibiting its members from spending more than 70% of their total income on their payroll, which has seen Los Merengues cut their cloth accordingly. Their most recent accounts showed their expenses (€452 million/$487.1 million) represented 54% of their income (€843 million/$908.6 million), significantly less than the year before, when that figure stood at 72%. Spending on salaries has been cut, while the club are simultaneously making more money. And the timing couldn’t be better, as far as Mbappé is concerned.

How much is spent on the first-team squad is, of course, crucial to the club’s accounts. Salaries are significantly higher and more unpredictable from one year to the next than in any other area. And this is where Madrid have made a big effort to make room for the French star.

In the year ending 30 June 2022, the total amount spent on the salaries of players and coaches amounted to €404.9 million ($436.4 million), a figure which had dropped by €78.4 million ($84.5 million) to €326.5 million ($351.9 million) 12 months later.

Madrid have moved on plenty of high earners in the last few years, with the likes of Marcelo, Isco, and Gareth Bale all leaving at the end of their contracts. The next figures are also expected to be extremely healthy, with the departures of Eden Hazard (€30 million/$32.3 million per season), Karim Benzema (€30 million/$32.3 million), Marco Asensio (€16 million/$17.2 million), and Mariano Díaz (€8 million/$8.6 million) to be taken into the account. And with Luka Modric looking more than likely to move on at the end of the season, paying Mbappé top dollar shouldn’t prove to be too much of an issue.