French giants Paris Saint-Germain were in the headlines over the past week after the rumors over their interest in signing Brazilian skipper Neymar.
The reports suggested that the Parisians are ready to activate his release clause by offering €222 Million to Barcelona. Initially thought to be rumors, the news picked up quite a pace with so many media outlets reporting on PSG’s interest.
However, if PSG are able to sign Neymar from Barca this summer they will need to ready an astronomical €528 million to get the Brazilian. The total sum involves €222 million transfer fee along with €306 million which will add up to his wages over the five year tenure at Parc des Princes.
The 25-year old is one of the best young attackers in the world and believes he should move to a new club after playing under the shadow of Messi over the past four years. His massive buy out clause does not bother PSG considering their financial muscle.
But the French club will not be needing to pay any taxes over the transfer as new rules meant while paying the release clause, VAT and IRPF will already be included in the total sum.
Before to last year, if Neymar deal went through, PSG must have to pay a colossal 46.62m for VAT and an extra 106.56m in IRPF which would have made the transfer fee an eye watering €328.56m.
Apart from the transfer fee, PSG are also ready to pay €30 million per season net salary for Neymar over a five year deal. However, in France the maximum tax for any income over 500,001 euros is 45 percent and with Neymar still being single, he will have an extra charge of 4 percent.
In order to ensure Neymar earns 30m euros per season in net, PSG will have to pay an incredible 61.2m each season. PSG could be happy on this aspect as well with the tax much lower than 75 percent that used to be between 2012-15.
Here is the break down of incredible transfer numbers.
Transfer fee- €222 million
Salary- €306 million over five years (€61.2 million per season, €30 million net)
The numbers are truely alien as there are hardly four to five clubs that has the financial turnover of over €500 million a year in entire Europe.