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PSG will pay a high price if they renew Mbappe deal

Paris Saint-Germain want to sort out Kylian Mbappe's future, but they will need to pay a high price if they are to get their way and keep him for another year.

The France international's contract expires at the end of this season and losing one of the top talents in world football, especially at such a young age, for nothing, would be a disaster for PSG on many levels.

It is well known that the player wants to play for Real Madrid one day, but he is open to staying in Paris in the short-term, so a new deal is possible but could be complicated as PSG will want to receive a transfer fee if and when he does move on.

A further problem for the Parisian club is that Mbappe's contract is a particularly expensive one for the club, compared with their other top earners.

This is because as Mbappe is tied completely to the French tax system, while foreign players who have spent less than eight years (or five years before 2017) in France do not pay all of their taxes to the French government.

In the case of Sergio Ramos, for example, PSG avoid paying tax on around 30 percent of his contract, while in Mbappe's case they are liable for the full amount, meaning that they would actually pay more for Mbappe than they would for Neymar, even if they earned the same.

Release clause problem

It may appear that the solution to the contract dispute between club and player might be to insert a clause in the new deal stipulating the amount which Real Madrid would need to pay to release Mbappe from his contract.

Mbappe wants PSG to receive a transfer fee if possible, but he doesn't want to be tied to their unrealstic valuations. However, such release clauses are illegal in France, meaning that Mbappe may be more inclined to just sign a one-year extension, which would potentially create the same problem this time next year.

Monaco's money

Another hurdle to overcome in this saga is that Monaco claim they will be due 35 million euros from Mbappe's sale. That's right, not a percentage but a fixed sum from any transfer fee.

That will raise PSG's expectations of what they want from Real Madrid and frustrate the player. In the absence of informal agreements between all parties involved, it's difficult to see a scenario where Mbappe signs long-term with PSG, so a free transfer to the Bernabeu could still be on the cards, but in summer 2023, not 2022.

Real Madrid waiting optimistically

Meanwhile, Los Blancos are counting down the days until January 1 when they can officially present the player with a contract offer. They had been prepared to offer PSG as much as 200 million euros in the last window, but they could now get him on a pre-contract agreement to arrive this coming summer.

The belief within the Madrid club is that if it doesn't happen this summer, then it will in 2023, although that's what they thought in summer 2021 as well.

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