Real Madrid Faces Financial Risks Amid Kylian Mbappe’s Controversy in China
Real Madrid finds itself in a difficult position due to Kylian Mbappe’s recent controversy involving China. The club’s commercial success relies heavily on its global appeal, which is significantly bolstered by star players like the French international.
These athletes contribute to considerable revenue through sponsorships, merchandise, and image rights. However, Mbappe’s recent incident in China may have financial repercussions for Los Blancos.
As reported by Mundo Deportivo, the club is poised to lose revenue as their agreement with Mbappe grants them a share of his image-rights income.
This concern arises after multiple commercial partnerships associated with the French forward ended recently.
Mbappe’s Sponsorship Losses Pose Threat to Real Madrid
Mbappe earns about €30 million each year through various advertising deals, highlighting his status as one of football’s most commercially valuable players.
However, companies in China such as Dongpeng Beverage, Mengniu, and Milkground have ended their collaborations with Mbappe following his remarks regarding a meme featuring former Chinese leader Mao Zedong.
Typically, Madrid retains 50% of their players’ image-rights revenue. However, Mbappe has negotiated terms that allow him a larger share. Despite this, the club still financially benefits from certain agreements tied to the forward, meaning lost sponsorships will impact the club as well.
The exact financial implications are unknown since the value of the terminated contracts has not been made public.
Threat to Real Madrid’s Merchandise Sales in China
Merchandise sales represent another significant concern, particularly since China is a vital market for Real Madrid. Current estimates suggest that around 15% of the club’s global shirt sales are generated from China, with Mbappe’s No. 10 jersey being the top-selling shirt at the moment.
A sustained backlash against the Frenchman could thus diminish demand for Madrid merchandise, leading to additional revenue losses.
Regarding the situation, Chinese broadcaster CCTV has halted coverage of La Liga, although Mbappe has already issued an apology for his statements. The broadcaster does not find his apology to be sufficient for reassessing its stance on the boycott.
The growing controversy around Mbappe is escalating, and La Liga president Javier Tebas is actively engaged in discussions to remedy the situation.
The immediate focus for both the league and Real Madrid centers on mending relations with the Chinese market and mitigating further damage. Failure to address these issues may lead to escalating financial losses, and it remains uncertain when this controversy will settle.
