Mbappé-PSG legal battle shares familiar issues common to everyday business contract disputes

At the heart of the dispute is whether Mbappé was entitled to leave PSG on a free transfer at the end of his contract. Despite a record-breaking contract offer in 2022, unmet expectations regarding signings and miscommunication about contract terms eroded trust. In mid-2023, Mbappé informed PSG he would not extend his contract, setting the stage for his free-agent departure in 2024. PSG, determined not to lose him without compensation, excluded him from the first team and even rejected a €300m transfer offer from Saudi team Al Hilal. Mbappé eventually signed for Real Madrid on a free transfer in July 2024.

PSG claims a verbal agreement between their president, Nasser Al-Khelaifi, and Mbappé, witnessed by head coach Luis Enrique and sporting director Luis Campos, outlined two scenarios: either a transfer fee worth at least €180m (£152m) in 2024 with a €82m (£69.2m) loyalty bonus for Mbappé, or a free transfer but with reduced wages by a reported €55m (£46.4m) for the 2023–24 season. Should the dispute proceed to an employment tribunal, PSG may seek up to €98m in compensation. However, France’s labour laws may prioritise Mbappé’s right to his salary over any legal veracity of PSG’s verbal agreement.

The case is a stark example of how unresolved disputes can spiral into complex legal battles, driven by media attention and brinkmanship, risking financial and reputational damage for both parties.

While the Mbappé–PSG dispute is high profile, the underlying issues – trust breakdown, misaligned incentives and poor communication – are common across business contract disputes. BTG Advisory has extensive experience in helping to resolve these disputes, offering assistance with mediation and alternative dispute resolution (ADR) to prevent prolonged and costly legal battles.

In business scenarios, BTG Advisory focuses on three key areas: analysing performance metrics tied to contract KPIs, disentangling payment mechanisms often linked to KPI metrics, and addressing any alleged contract breaches. We are frequently instructed by lawyers to consider financial matters related to disputes, including:

• Jointly instructed expert determinations
•  Preparation of expert witness reports or other deliverables to quantify the impact on our clients
• Meeting with the opposing side’s expert to narrow down areas of agreement and disagreement to help the parties move towards settlement
• Attendance at mediation or involvement in other forms of ADR to advise on disputed quantum matters
• Attending and giving evidence at court or tribunals to help the judge/panel arrive at a judgment/decision

BTG Advisory’s expertise ensures that even the most complex disputes, whether involving loss of profits, contract violations or intricate financial claims, are handled with precision and a focus on resolution.