What is Real Madrid target Kylian Mbappé’s “non-aggression pact” with PSG and Nasser Al Khelaïfi?

The future of Kylian Mbappé dominated the summer of 2023 as far as Paris Saint-Germain were concerned. On 12 June, the France captain informed the club he had no intention of signing a one-year contract extension until 2025 but that he did intend to stay put for one final season, leaving the Ligue 1 champions and their Qatari owners between a rock and a hard place. They could either convince Mbappé otherwise or lose him for free in the summer of 2024, potentially to Real Madrid.

After weeks and months of speculation, PSG opted to leave the attacker out of their pre-season tour of Japan, which began on 21 July. That measure, endorsed by president Nasser Al Khelaïfi, was effectively an ultimatum - sign a new deal, accept an immediate move away, or be left on the sidelines.

Mbappé reaches agreement with PSG president Al Khelaïfi

Mbappé stood firm and refused to take the bait, which resulted in him being left out of the opening game of the season, a 0-0 draw at home to Lorient. But on the day of the match, the former Monaco star met behind the scenes with Al Khelaïfi, the pair ultimately coming to an agreement which is essentially a type of non-aggression pact.

After the meeting, the club’s Qatari bosses leaked that their prize asset was on the verge of signing a contract extension and a deal had been done in principle. An agreement was indeed reached, but it was for Mbappé to defer loyalty bonuses he was due from PSG rather than prolong his contract.

How much was Mbappé owed in loyalty bonuses by PSG?

The bonuses were written into Mbappé's most recent contract extension of two years, signed in May 2022. Last summer, much was made of the fact the French side could find themselves in serious financial bother if they were unable to stop the 25-year-old from leaving for free, assuming he would also be paid the bonuses he was owed.

But following the Trophée des Champions (French Super Cup) victory over Toulouse on Wednesday, Mbappé confirmed he had agreed to give up €80 million ($87.64 million) in loyalty bonuses to ensure PSG don’t take a huge financial hit in the summer. While there have, as yet, been no signs the attacker will change his mind and renew his contract, leaving on a free transfer would no longer be so damaging for the club, who will save a significant amount of money elsewhere.

French star undecided on future amid Real Madrid interest

“I haven’t made a decision yet. But we have an agreement with the president that means all parties are protected. My future is not just a personal question. You have to think about the team,” Mbappé said after scoring in the 2-0 win over Toulouse on Wednesday. “In 2022, I didn’t know my decision until May. If I know what I want to do, I shouldn’t let the decision drag out. It wouldn’t make any sense. Nobody talks about my situation at the club, nobody is interested.”

A win-win for Mbappé

Al Khelaïfi and Mbappé's “non-aggression pact” suits both parties. If the player ultimately doesn’t sign a new contract and misses out on the loyalty bonus, he will instead receive a huge signing-on fee from the club he decides to join. Should he change his mind and prolong his stay in Paris, he will be paid a handsome bonus as part of his contract extension, as already happened in May 2022.

The never-ending transfer saga looks to be nearing it’s conclusion, but it’s not quite over just yet.