Kylian Mbappe vs PSG: The High-Stakes Legal Battle Over Contract Disputes
Legal Showdown in Paris
A Paris labor court is set to announce its decision on Tuesday regarding the financial dispute between Kylian Mbappe and his former club, Paris Saint-Germain (PSG). This case marks another significant chapter in an ongoing legal saga involving substantial financial claims.
Last month, lawyers presented their arguments before the Conseil de prud’hommes de Paris, with both parties seeking hundreds of millions of euros from each other following the termination of Mbappe's contract prior to his transfer to Real Madrid in the summer of 2024.
Amidst allegations of betrayal and harassment, Mbappe's legal team asserts that PSG owes him over 260 million euros (approximately USD 305 million). They argue that his fixed-term contract should be reclassified as permanent, which would entitle him to compensation for wrongful dismissal and unpaid wages. Additionally, they have raised claims of moral harassment and undeclared work.
Conversely, PSG is pursuing 440 million euros from Mbappe, citing damages and a loss of opportunity after he departed on a free transfer.
The ruling on Tuesday may be subject to appeal and is unlikely to resolve the dispute entirely. The court could also choose to decline jurisdiction or postpone the case for a later date, potentially involving a tie-breaking judge if a consensus is not reached.
This decision could have wider implications for player contracts and labor laws within French football, despite PSG's assertion that Mbappe's request to reclassify his contract lacks legal merit.
The club contends that contracts for professional players are a unique type of fixed-term agreement governed by sports regulations and validated by the French professional league, in line with both French and EU law. Mbappe's legal representatives, however, argue that reclassifying a fixed-term contract to a permanent one is standard practice when the legal conditions for a fixed-term agreement are unmet.
Background of the Dispute
The tension between the 2018 World Cup champion and the reigning European champions escalated when Mbappe opted not to extend his contract in 2023, which was set to expire in the summer of 2024.
This decision deprived PSG of a lucrative transfer fee, despite the club having offered him the most lucrative contract in its history when he renewed his deal in 2022. Following this, he was excluded from a preseason tour and had to train with less prominent players. Although he missed the opening league match, he eventually returned to the squad after discussions with the club, which are central to the ongoing dispute.
Accusations of Betrayal
PSG claims to feel betrayed by Mbappe, accusing him of reneging on an agreement made in August 2023 that allegedly included a pay cut if he left on a free transfer. The club argues that this arrangement was designed to safeguard its financial stability. PSG alleges that Mbappe concealed his decision not to extend his contract for nearly 11 months, from July 2022 to June 2023, which hindered the club's ability to arrange a transfer and caused significant financial damage. They accuse him of breaching contractual obligations and the principles of good faith and loyalty.
Mbappe's Counterclaims
On the other hand, Mbappe's camp asserts that PSG has not provided any evidence that he agreed to forfeit any payments. His legal team claims that the club failed to pay his wages and bonuses for April, May, and June 2024. They are also advocating for the reclassification of his fixed-term contract to a permanent one, which would trigger compensation. Furthermore, Mbappe accuses PSG of moral harassment, citing his treatment during his sidelining. His total claim exceeds 260 million euros, encompassing unpaid salary, contractual bonuses, severance, indemnities, and damages for workplace misconduct.
PSG has denied all allegations of harassment, emphasizing that Mbappe participated in over 94% of matches during the 2023–24 season and always worked under conditions compliant with the Professional Football Charter.
In its pursuit, PSG is seeking a total of 440 million euros in damages, which includes 180 million euros for the lost opportunity to transfer Mbappe after he declined a 300 million euros offer from Saudi club Al-Hilal in July 2023.
Mbappe ultimately joined Real Madrid in the summer of 2024 on a free transfer after achieving a club-record 256 goals during his seven-year tenure at PSG, which won the Champions League this year without him.