By Andrew Warshaw, Chief Correspondent
January 8 – Paris St Germain president Nasser al-Khelaifi has stated that the club’s unusual commercial arrangement with the Qatar Tourism Authority is entirely justifiable both as a piece of business and also in enabling PSG to meet UEFA’s financial fair play criteria.
Under the partnership, which is not a sponsorship agreement and the detail of which is still to be formally announced, the QTA will pump up to €200 million a year into the French club until 2016.
The deal is worth twice PSG’s revenues for the 2010-11 season but has been questioned in France as being considerably out of proportion to existing naming rights and sponsorship deal in the French and European market.
The criticism is that it is designed purely to enable PSG to come within UEFA’s financial fair play criteria, but because of its size bears no relation to market value and hence does not level the financial playing field intended by the new fair play regulation. Ultimately French critics say it is nothing more than a vast publicity campaign for the Gulf state as it builds towards hosting the 2022 World Cup.
“The contract with QTA is justified because PSG’s influence in the whole region, not only in Qatar, has been important,” Al Khelaifi said in his first public comments on the issue.
“We have been building an international brand. This deal is a strong symbol. Qatar has benefited a lot from its investments in PSG.”
PSG has spent more than €250 million in transfers since being taken over by Qatar Sports Investments (QSI) – far more that it could afford under the terms of UEFA’s stricter financial criteria that clubs spend no more than they earn.
The financial fair play criteria is a key issue for a number of the top European clubs who have taken overseas investment to build top level championship winning playing squads.
The rules impact high-spending newer investors harder – like the Qataris at PSG – as they have had less time to build the commercial side of the business so that they can comply.
High spending and paying clubs that have been doing so for a number of years have been given more time within UEFA’s regulation to adapt – with percentage breaks in the financial thresholds to take account of existing player contracts as well as an allowance to deduct certain infrastructure costs (like investment in academies) from their total spend figures used for the purposes of the regulation.
“We will keep on investing,” Al-Khelaifi told l’Equipe. “It’s necessary to become one of the great European clubs. Other clubs have invested for 20 years. We have been there for a year and a half and now we must stop pouring
money? It would be unfair.”
Contact this writer of this story at zib.l1734880673labto1734880673ofdlr1734880673owedi1734880673sni@w1734880673ahsra1734880673w.wer1734880673dna1734880673