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Transfer update: Neymar signed at PSG

4 August 2017
The news about the transfer of Neymar to Paris Saint Germain for a record amount of € 222 Million shocked the football world. The threshold built into his contract with Barcelona seemed unsurmountable. But the Qatari owners of PSG found enough money and perhaps political motives to make this transfer. The latest news (August 4, 06:21) is that La Liga accepted the intended payment, and both FC Barcelona and PSG announced the world-record transfer.

If we look at this transfer from an economic point of view, it becomes quite understandable. Neymar is one of the very best players in Europe. The Remiqz’ EuroPlayerIndex (EPI) has him at position 10 at this point in time, with an estimated market value of € 143 Million. Neymar will be the best player in his new team and will undoubtedly make PSG a stronger team than it is now. In Remiqz terms they gain 98 ECI points, making them the fifth team in Europe. This increases their odds to win the French title this season from 65% to 71% in our simulations. It also significantly increases their prospects in the Champions League to reach the semifinals. Annually, both are worth many millions of euros, in prize money, match day revenues, TV revenues, sponsoring and merchandise. Last year PSG dropped two places to sixth in the Deloitte Money League with a turnover of € 520 Million, with the transfer of Neymar they can recover much of the lost ground.

Neymar player profile

Development of Neymar’s EPI over the last years, including his new EPI at PSG

And of course, Neymar is in his prime, 25 years old and it is still expected he will improve his EPI-score. This means his value on the transfer market will remain very high during and at the end of his 5 year contract at PSG. Although he will probably never reach the actual market value of € 222 Million, the price tag to transfer him again in the years to come stay very high in any case. Furthermore, his yearly salary of € 60 Million makes him the world highest-paid player at the moment. Based on the expected increase of annual revenue and profit due to this transfer, his salary will probably be more than covered.

As for FC Barcelona, they will lose an excellent and important player, resulting on first sight in a loss of team quality and a setback in their battle with Real Madrid for best football team in the world. On the Remiqz ECI, the points lost with this transfer are slightly above the 100. A decrease that has a negative effect on the odds for titles, both domestic and international. But FC Barcelona have proven many times that they are able to compensate the loss of an important player with new players, from their own ranks and from outside. A pocket book filled with € 222 Million will certainly help in realizing this.

All in all, after this transfer we expect FC Barcelona to retain their position in the absolute top of European football while strengthening their financial position, and Paris Saint Germain to do better than last year, both on the pitch and in turnover. They payed too much for Neymar, but it may well turn out to be a good investment.