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Kylian Mbappe deal will cost Real Madrid a staggering €500 million over five years – report

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Photo by FRANCK FIFE/AFP via Getty Images

Journalist Marco Ruiz has published the details of Kylian Mbappe’s contract with Real Madrid, affirming via AS that the French superstar will cost Los Blancos €500 million across five years.

Mbappe’s move from Paris Saint-Germain to Real Madrid in the summer was unofficially confirmed a few days ago, but as reported before, the parties involved wanted to sort out the minute details of his contract.

Since the young forward is set to leave PSG on a free transfer, it is said that he would pay some sort of compensation to the French team as part of the goodwill gesture from his end.

How will Real Madrid accommodate Mbappe?

Real Madrid have come up with a clever plan to bring in Mbappe. They are offering a big signing bonus and a high salary for five years. The total cost of getting him will be around €500 million. 

The club has €128 million in cash, got loans of €265 million, and reduced their expenses by lowering their wage bill by €78 million in the last year. Additionally, the club expects to earn €317 million from the stadium once it’s finished, compared to the current €150 million. 

Kylian Mbappe is close to signing for Real Madrid. (Photo by GUILLAUME SOUVANT/AFP via Getty Images)

Only careful financial planning such as thi has made it possible for Real Madrid to make this signing happen.

How have Madrid become financially secure?

Real Madrid have grown into a huge company, to say the very least. As of June 30, 2023, the club said it has 1,072 employees. 

The European Club Association uses something called the Efficiency Ratio to check how well a business is doing financially. It’s like a rule – a club’s employee costs shouldn’t be more than 70% of what they earn. 

Last season, Madrid spent 72% (€519 million) of its total income (€712 million) on salaries for over 1,000 workers. But in the latest financial report, they reduced it to 54% (€452 million) of their total income (€843 million). 

So, they cut down on salary expenses and made more money which has put them into a good situation for the possible signing of Mbappe.

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Real Madrid News

Shocking Modric, Vinicius, Cristiano fact makes Real Madrid fans ‘feel old’

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Photo by JAVIER SORIANO/AFP via Getty Images

Luka Modric is set to stay with Real Madrid for another season, meaning he will have played more seasons with Vinicius Jr. (7) than he did with Cristiano Ronaldo (6). 

Feeling old yet? We thought so too!

Modric joined Real Madrid in the summer of 2012 after four seasons with Tottenham Hotspur. On the other hand, Vinicius Jr. joined Real Madrid in 2018. 

By the end of the 2023/24 season, Modric and Vinicius will have spent six seasons together. This is the same number of seasons Modric played with Cristiano Ronaldo, who was at Madrid from 2009 to 2018. 

However, with Modric set to stay for another season, he will surpass that, playing more seasons with Vinicius than with Ronaldo, the club’s all-time top scorer.

A new contract for Modric

It is important to note that Real Madrid and Modric have reached an agreement in principle for his contract renewal for another year.

Luka Modric will stay at Real Madrid for another season. (Photo by Aitor Alcalde/Getty Images)

At 38, Modric’s contract was set to expire at the end of the current season. For a while, it seemed the Croatian star might leave Santiago Bernabeu this summer. 

However, things have changed recently, and Real Madrid have decided to offer him a new contract. 

Interestingly, Real Madrid have also offered a renewal to Toni Kroos with club president Florentino Perez personally involved in the negotiations.

Modric and Kroos will continue

Reports suggest that Modric has agreed to the new proposal, with an agreement in principle now in place. It is also expected that Kroos will accept his offer, meaning Real Madrid will keep both veteran players for another season.

The Croatian was reportedly willing to accept a pay cut and a reduced role in the team to continue playing for Real Madrid. This flexibility may have sped up the agreement process.

His willingness to adapt to a reduced role and accept a pay cut has likely influenced the club’s decision to renew his contract for one more year. 

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