Kylian Mbappe demands €260m from PSG in compensation: Report

(Courtesy : LaLiga Content Hub)
The tensions between the two parties began after the French captain joined Real Madrid on a free transfer.
In the summer of 2022, Kylian Mbappe signed a 2-year contract plus one optional year contract with Paris Saint-Germain (PSG), which stopped him from joining Real Madrid at that time. The control of activating the optional year was in the hands of Mbappé, which also became the centre of a big legal dispute between the two parties.
The French captain opted not to activate the optional year and decided to join Real Madrid on a free transfer in June 2024. This was the moment when the problems between Mbappé and PSG escalated quickly.
The Ligue 1 giants expected the Frenchman to extend the contract or be sold, but none of this happened. PSG felt betrayed. Kylian Mbappe was excluded from the pre-season tour, forced to train separately and was removed from photos and marketing campaigns.
As per the French forward, this was a “moral harassment” by the club. Later, a temporary truce between the two sides took place, but the trust between them was broken.
Kylian Mbappe informed Paris Saint-Germain privately in January 2024 that he would join Real Madrid and would leave for free. The French giants became furious as they expected a transfer fee, but instead lost around €300 million or more worth asset for a zero transfer fee.
Mbappe’s dispute with PSG turns increasingly aggressive

The legal proceeding between these parties is moving through the Paris labour court and has reached a considerably new phase. Kylian Mbappe is now demanding around €260m (£229m/$301m) as compensation.
As per some recent reports, the French star has increased his initial claim of €55m (£48m/$64m) after skipping Monday’s hearing. Mbappe is arguing that PSG must pay because his fixed-term contract should have been considered a permanent arrangement.
This rearrangement will make him eligible to full compensation for unfair dismissal, unpaid wages, bonuses and severance, in addition to substantial damages. The Real Madrid striker’s legal team said, “Kylian Mbappe is not asking for anything beyond what the law provides; he is simply seeking the enforcement of his legal rights, as any employee would.”
PSG hit back claiming major financial and image losses
The Ligue 1 giants and UEFA Champions League winners are putting up an argument that Kylian Mbappe leaving on a free transfer has caused their reputation severe harm. This has also been an issue for them financially. They have now responded with a counter-claim of €440m (£387m/$510m).
“The club has presented evidence demonstrating that the player acted disloyally by concealing his decision not to extend his contract for almost eleven months, between July 2022 and June 2023, thus depriving the club of any possibility of arranging a transfer”, PSG mentions in a statement.
The French giants further mentioned that the player disputed an August 2023 agreement that would reduce his salary if he chose to leave on a free transfer. A measure the club said was necessary to protect its finances after their substantial investment in him.
Paris Saint-Germain have absolutely denied the mistreatment allegations or implying psychological pressure, as claimed by Mbappe. The club also added that the Frenchman played the majority of the official matches for them during that phase. As per PSG, “sporting decisions were made by a coach who is now a Champions League winner.”
Mbappe’s representatives dispute claims by PSG
The player continues his claim of “moral harassment”, and his legal team has rejected the narrative presented by the Ligue 1 giants. They also insisted that the club never came up with proof of a particular agreement that removes the bonuses.
Kylian Mbappe’s camp has further argued that this particular treatment by Paris Saint-Germain developed a “hostile working environment” for the player, and specific obligations under the French labour code were breached.
This unethical sidelining of Mbappe came into play after he informed the French giants of his decision not to extend his contract and wanted to join Real Madrid. This was done to pressurise the player into renewing, his lawyers mentioned further. They repeated that PSG have “never produced any evidence” of a verbal pact on bonuses or salary reductions.
When did Kylian Mbappe join Real Madrid?
The French star joined Los Blancos in June 2024 on a free transfer.
How much did Real Madrid pay to sign Kylian Mbappe from PSG?
Mbappe joined the LaLiga and European giants on a free transfer.
Did Kylian Mbappe win the UEFA Champions League with PSG?
No, Paris Saint-Germain won the 2024-25 UCL, and Kylian Mbappe was a part of Real Madrid by then.
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Dilpreet is a dedicated football writer with a keen eye for World Football. As a proud Real Madrid fan, we believe his work reflects the same ambition and precision. Since joining Khel Now in 2025, he has crafted stories beyond scores, diving into tactics, culture, and emotion. With a strong background in content writing, he blends clarity with creativity, always aiming to bring the beautiful game closer to readers.
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