Neymar's Groundbreaking Move: The Financial Impact Of His Transfer To PSG

For those of us who do not follow soccer, Neymar is a 25-year-old Brazilian superstar who has played forward for Barcelona since 2013. You may have caught him during the 2016 Rio Olympics when he played for the Brazilian national team that embarrassingly did not fare as well as people predicted. Or, maybe, you saw him in a Taco Bell commercial that aired during the Super Bowl. Or maybe you follow soccer? Regardless of how much or how little you know about Neymar, the main thing you need to understand for our purposes today is that Neymar has been looking for a raise. A BIG RAISE. His most recent salary at Barcelona was $12 million per year. A very respectable amount, but nowhere near the $44 million his Barcelona teammate Lionel Messi made during the 2017 season. Well, today Neymar signed a deal that will allow him to never feel insecure about his paycheck ever again.

It was just announced that Neymar has signed an absolutely enormous deal with French club Paris Saint-Germain. This new deal will allow Neymar to earn his last salary of $12 million, in about 9 weeks. In total, Neymar will be paid $53 million per year, totaling $265 million over the course of the 5-year deal. This deal makes him the highest-paid athlete in the world (in terms of salary), just barely eclipsing previous record holder Cristiano Ronaldo's $52 million base salary.

It gets crazier. PSG is not only paying Neymar a ridiculous amount of money, they are also paying Barcelona an absolutely insane amount of money as a transfer fee. For those who don't know, a transfer fee is basically an amount of money the acquiring team has to pay the previous team just for the privilege of taking the player. To execute Neymar's "release clause", PSG is paying Barcelona a one-time fee of $260 million. That’s more in a single transfer fee than the 13 highest Premier League team transfer fees, combined. For some additional context, consider this – In the history of the National Basketball League, only three players have earned more than $260 million in salary during their entire careers; Kobe Bryant, Kevin Garnett, and Shaquille O'Neal. So Neymar's transfer fee alone is more than 99.999% of what every NBA player in history has ever earned in his entire career.

When you add it all up, between salary, bonuses, and transfer fees, PSG is essentially spending around $520 million to acquire Neymar. There are some potential wrinkles/hurdles. First off, there’s a regulation called Fair Play which says that no team can lose more than $6 million over three years. Furthermore, owners aren’t allowed to spend more than $35 million of their own money on their teams above and beyond the regulations. By some estimates, Neymar’s deal will eat up around 75% of Barcelona's annual revenue if they want to remain within the Fair Play regulations.

Transfer fees do not get applied to the Fair Play regulations. So you might be wondering how PSG can afford to simply cut a check to Barcelona for $260 million? Well, it helps that PSG is owned by the Qatari government, technically the Qatari Sports Investments Group.

***Update*** In yesterday’s version of this article, we reported that Neymar's weekly salary was going to be $1.2 million, which would work out to around $67 million per year. Today we are learning from the BBC that his weekly salary will actually be $1.02 million per week, roughly $53 million per year.

Table of Contents

• Neymar's Biography
• Financial Impact of Neymar's Transfer
• PSG Ownership and Financial Fair Play
• Final Thoughts

Neymar's Biography

Neymar da Silva Santos Júnior, known simply as Neymar, was born on February 5, 1992, in Mogi das Cruzes, São Paulo, Brazil. He is regarded as one of the most talented soccer players of his generation. Neymar began his career at Santos FC before moving to Europe, where he gained fame at FC Barcelona.

He has achieved numerous awards and accolades, including being named the South American Footballer of the Year and winning multiple championships with Barcelona and Brazil's national team.

Financial Impact of Neymar's Transfer

Neymar's transfer to PSG is not just a significant event in sports; it highlights the evolving financial landscape of soccer. The staggering amounts involved in his salary and transfer fees demonstrate how lucrative the sport has become. The implications for both PSG and Barcelona are profound, affecting their financial strategies for years to come.

PSG's investment in Neymar exemplifies the club's ambition to dominate European football. The financial outlay also raises questions about the sustainability of such spending and its compliance with regulations aimed at ensuring fair competition.

PSG Ownership and Financial Fair Play

PSG is owned by the Qatari Sports Investments Group, which has significantly influenced the club’s spending power. Their financial backing allows PSG to pursue high-profile players like Neymar, creating a competitive edge in both domestic and international competitions.

The concept of Financial Fair Play aims to prevent clubs from spending beyond their means, promoting integrity in the sport. However, the exceptions available to wealthy clubs like PSG challenge the effectiveness of these regulations.

Final Thoughts

Neymar's move to PSG marks a pivotal moment in the world of soccer, showcasing the enormous financial stakes involved. As the highest-paid athlete, Neymar's contract reflects the tensions between ambition and regulation in modern football. The future will reveal how these developments shape the landscape of the sport and the sustainability of such financial practices.