Kylian Mbappe’s transfer to Real Madrid has brought significant financial challenges for the Spanish club, despite being a free agent after leaving PSG, Soccernet.football reports.
Real Madrid had been negotiating since last January, and the move was one of the most anticipated transfers in recent years.
After seven years at PSG, Mbappe joined the reigning Champions League winners, Real Madrid, adding one of the world’s top players to their roster.
However, Mbappe’s “free” transfer came with substantial costs.
Real Madrid paid a hefty signing bonus, reportedly around 130 million euros, directly to Mbappe. This large sum necessitated the club to activate several financial measures to manage the expense.
According to the Spanish media outlet Vozpopuli, Real Madrid extended its credit lines to cover the cost of Mbappe’s salary and bonus.
Under Florentino Perez’s leadership, the club borrowed 130 million euros, adding to an existing debt from previous loans, including a 395 million euro loan taken during the Covid-19 pandemic.
As of June 30, 2024, Real Madrid’s cash reserves had dwindled to 82 million euros, the lowest in 20 years, following a reduction of 46 million euros. The signing bonus for Mbappe will be paid over five years, as agreed with the player.
The club hopes that Mbappe’s arrival will boost revenues, particularly with the completion of renovations at the Santiago Bernabéu stadium.
Mbappe’s transfer has put financial pressure on Real Madrid, requiring him to deliver both on the pitch and in marketing to justify the investment.