Paris labor court to rule on Mbappé-PSG financial dispute

PSG President Nasser Al-Khelaifi and Kylian Mbappe [AP Photo]

A decision by a Paris labor court in the financial dispute between Kylian Mbappé and his former club Paris Saint-Germain is expected early today [Macau time] — the latest chapter in a judicial saga involving colossal sums.

Lawyers argued last month before the Conseil de prud’hommes de Paris, with each side demanding hundreds of millions of euros from the other regarding the end of the player’s contract before his move to Real Madrid in the summer of 2024.

Amid accusations of betrayal and harassment surrounding the breakdown of their relationship, Mbappé’s lawyers claimed PSG owes him more than 260 million euros ($305 million). They argue his fixed-term contract should be reclassified as a permanent one, triggering compensation for unfair dismissal and unpaid wages. They have also alleged moral harassment and undeclared work.

PSG, meanwhile, is seeking 440 million euros from Mbappé, citing damages and a “loss of opportunity” after he left on a free transfer.

The decision can be appealed and is unlikely to end the dispute. The panel may also decide to decline jurisdiction or to adjourn the case to a later hearing, sitting in parity with a tie-breaking judge if no majority emerges.

The ruling may have broader consequences for player contracts and labor law in French soccer, even as PSG maintains that Mbappé’s request to reclassify his contract as a permanent one is without legal basis.

The club argues that professional players’ contracts are a special form of fixed-term agreements regulated by the sports code and validated by the French professional league, in accordance with both French and European Union law. Mbappé’s legal team disagrees, saying the reclassification of a fixed-term contract into a permanent contract is a standard procedure when legal conditions for a fixed-term deal are not fulfilled.

The origins of the dispute

The relationship between the 2018 World Cup winner and the reigning European champion turned bitter when Mbappé decided in 2023 not to extend his contract, which was set to expire in summer 2024.

This deprived the club of a juicy transfer fee despite having offered him the most lucrative contract in club history when he signed a new deal in 2022. He was sidelined from a preseason tour and forced to train with fringe players. He missed the opening league game but returned to the lineup for a final season after discussions with the club — talks that are central to the dispute.

PSG feels betrayed

The club accuses Mbappé of backing out of an August 2023 agreement that allegedly included a pay reduction should he leave on a free transfer, an arrangement PSG says was meant to protect its financial stability. PSG claims Mbappé hid his decision not to extend his contract for nearly 11 months, from July 2022 to June 2023, preventing the club from arranging a transfer and causing major financial harm. It accuses him of violating contractual obligations and the principles of good faith and loyalty.

Mbappé feels cheated

Mbappé’s camp insists PSG has never produced evidence that the striker agreed to forego any payment. His lawyers claim the club failed to pay wages and bonuses for April, May, and June 2024. They are also seeking reclassification of his fixed-term contract into a permanent one, which would trigger compensation. Mbappé also accuses PSG of moral harassment, citing his treatment when sidelined. His total claim exceeds 260 million euros, combining unpaid salary, contractual bonuses, severance, indemnities, and damages for workplace misconduct.

PSG is seeking a total of 440 million euros in damages, including 180 million euros for the lost opportunity to transfer Mbappé because he left as a free agent after declining a 300 million euros offer from Saudi club Al-Hilal in July 2023.

Mbappé joined Real Madrid in the summer of 2024. SAMUEL PETREQUIN, Sports Writer, MDT/AP