Is Kylian Mbappe really worth £250m?

I don’t know, but let’s look at this as a business decision.

This is obviously a huge investment for any football club as a business. At the time of writing, a move to Chelsea, for one year seems likely, but a few days ago, Liverpool were favourite to sign him.

The person making the decision, probably the owner, will want to have a good mix of expert advisors involved in a decision of this size.

The finance director of the football club would probably have questions in the following areas.

What is the length of contract and break clause, how can he leave?
He is 24 now, let’s say he leaves in 5 years, when 29, how much could he be worth then?
How do we raise £250m?
Will he cause salary inflation in the team? / Will he disrupt the team?
What if he breaks a leg? / Insurance
The increase in football shirts sales; can we increase the retail prices? / What’s the Gross Margin?
Other sponsorship income increases…

The finance team supporting the deal will be looking to give answers to these points and be pointing out the risks to minimise them and also working to maximise the opportunities.

In football and in business, teams win, NOT individuals.

Mbappe’s club, Paris Saint-Germain, did NOT win the Champions League and France didn’t win the last World Cup. He scored a brilliant goal in the 2018 World Cup final, but the best thing about that goal might have been the pass made by Pogba.

To state the obvious, individuals don’t win football trophies. It is the clubs with the strongest teams and the best professional set up that win out…

Class strikers may get the headlines but the best teams will also have outstanding defenders and goal keepers.

The FD4 Pitch….

Do you have all the skills you need in your top team?

Do you have someone who is looking out for the risks and watching the opposition?

As you are planning how to take your business forward, don’t just think about attack (Sales) and how to grow your top line. Also give some thought to defence and positioning - how you save money, improve margins, conserve cash, watch out for competition and get the best from the banks.

Make sure you win “all over the pitch”…., don’t neglect the finance function.

At FD4 we do think about what it takes to create winning teams.

Bonuses; incentives; share schemes; target setting; budget setting; monthly tracking; KPIs… these are issues that we as experienced Finance Directors are well schooled in and we can deliver a useful tool kit for any company however small…

How much is it worth to get that extra 10% from your team?
How much is it worth to have your top team motivated to win?

If you are looking at your team and thinking about sticks, carrots, incentives, targets and golden hand cuffs, then a little input from an experienced FD can make a huge difference.

The FD4 team is qualified to talk about football. If you doubt me them please take a look at Brian Kilcullen’s Blog :-

https://fd4.co.uk/manage-your-cash-royal-box-at-wembley-can-be-yours