Mbappe: Why PSG over Madrid…

Mbappe: Why PSG over Madrid…

Union of European Football Association (UEFA) has placed French club, Paris St Germain, under investigation to see if their recent transfer spending spree has broken the break-even rules of European soccer's ruling body known as Financial Fair Play (FFP).

No explanation was given as to why Mbappe has been initially signed on loan, but local media said it was an attempt to spread the payment to ensure PSG do not fall foul of FFP rules aimed at stopping clubs with rich owners spending their way to success.

PSG have been locked in talks with Monaco and Uefa over the past week to try to reach a deal that would not contravene financial fair play rules after they signed Neymar from Barcelona for €222m (£198m) earlier this summer. UEFA didn't accept that valuation and publicly said only it had used a figure "significantly below that submitted by the club". It is understood that inquiries by Uefa have also established that the expected £166 million signing of Kylian Mbappé from Monaco will also be registered within this financial year.

From 2013 to 2015 clubs could only post a net total loss of 45 million euros, which was reduced to 30 million for the next three years, running until 2018.

Clubs can also offset some of their expenses that count as investments, such as expenditures for academy programs, and stadium improvements and infrastructure.

A club could be excluded from participating in the Champions League. "Spending in football has always been out of control and we must take the strictest actions possible to ensure it does not continue", said the official, adding that the French champions will face grave consequences should they fail to acquiesce to the rules. President of Spain's La Liga, Javier Tebas, believes PSG can not possibly comply with FFP without using inflated sponsorship deals from Qatari companies way above market value and has labelled the system "financial doping".

It means PSG have saved more than £29.3 million in salaries, although that will be topped by the money they pay Neymar and Mbappe.

"The club is surprised by such a decision and is very confident in its ability to demonstrate it will perfectly respect the Financial Fair Play rules in accordance with the financial year 2017-18", PSG said in a statement. Since it was brought in you could argue it's gone the other way.

Mbappe officially joined PSG from Monaco on a season-long loan, but Sportsmail understands PSG are obliged to complete a permanent deal worth £166million next summer, making him the second-most expensive player ever after Neymar.