Why PSG have been able to sign £160m-rated Kylian Mbappe amid FFP scrutiny

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Paris Saint-Germain have confirmed the highly-anticipated signing of forward Kylian Mbappe from Monaco on a season-long loan deal.

The 18-year-old has been the most talked-about young talent in Europe since last season after he played a crucial role in guiding Monaco to the Ligue 1 title, but he has now secured a shock move to their domestic rivals.

According to BBC Sport, the loan agreement includes an option to sign the France international on a permanent deal until June 2022, with Mbappe said to be valued at around £160m.

The question for many after this deal is how PSG have been able to sign Mbappe after spending £200m on Neymar earlier this month, as per BBC, particularly given the expected impact of Financial Fair Play regulations to avoid such situations playing out.

As explained by BBC expert Steve Crossman, the wording of the announcement is key. They’ve specifically avoided officially confirming that the loan deal will become a permanent move as the transfer fee involved in the deal would then go into this year’s accounts.

That in turn would give them a major FFP problem. In contrast, they’ve insisted that it’s an option as it leaves the door open to it not eventually becoming a permanent move and so FFP can’t exactly be applied and they can extend the impact of the fee on their accounts. However, Crossman adds that he still suspects that the whole transfer will still come under UEFA’s spotlight.

It’s a tricky situation and in truth, PSG would surely have avoided such a move if it will eventually result in them being punished by UEFA. The French giants clearly have a strategy in place to ensure that Neymar and Mbappe could arrive without issues arising, but time will tell if they can stay within the guidelines.

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