According to Spanish media outlet Relevo, French superstar Kylian Mbappe will join Real Madrid this summer, signing a five-year deal with the club. This signing not only on the pitch for
Real Madrid soccer team
It brings huge reinforcements and places new demands on the club's financial planning.
Real Madrid's current salary cap is capped at €727 million, while last year's Real Madrid wage bill was €453 million. All of Mbappe's earnings from Real Madrid will count towards the salary cap, including fixed salaries, bonuses for reaching targets, loyalty awards, signing-on fees and likeness rights.
According to reports, Mbappe's annual salary at Real Madrid is €15 million, while he will also receive a €150 million signing-on fee. Although the two are conceptually different, both are actually considered as part of the salary in the payroll budget. Mbappe receives an after-tax annual salary of around €30 million per season at Real Madrid, which will take up €60 million of the team's salary cap amount.
Even after the introduction of Mbappe, Real Madrid still has about 200 million euros of salary space. This is thanks to the inauguration of the new Bernabeu and the financial savings accumulated over the past few seasons, Real Madrid's turnover can increase dramatically over the next few years and the salary cap is expected to easily exceed 800 million euros.
This means that after Mbappe joins, Real Madrid will still have enough financial space to sign another superstar player, providing the team with a stronger guarantee of competitiveness in all competitions.
Mbappe's arrival will undoubtedly greatly enhance Real Madrid's forward line strength, while his joining also shows Real Madrid's ambition and financial strength in the coming years. Fans will be waiting to see Mbappe's brilliant performance at Real Madrid, as well as the further moves of Real Madrid in the transfer market.
