Kylian Mbappe’s feud with Paris Saint-Germain has exploded into one of football’s most expensive courtroom battles, with the Real Madrid star now demanding more than €260 million in compensation. PSG have countered with an even bigger €440m claim, as both sides accuse each other of breaches of contract, bad faith and unfair treatment in a case now before a Paris labour court.

Mbappe escalates compensation claim against PSG

French superstar Mbappe’s long-running contract dispute with Paris Saint-Germain has reached a dramatic new phase, with the forward now demanding over €260m (£229m/$301m) in compensation as the case moves through the Paris labour court. According to a recent report by the Real Madrid striker, who did not attend Monday’s hearing, has massively increased his initial claim of €55m (£48m/$64m), arguing that PSG “owe him that money because his fixed-term contract should be reclassified as a permanent one.”

This reclassification, his lawyers say, would entitle him to full compensation for unfair dismissal, unpaid wages, bonuses and severance, in addition to substantial damages. His legal team stated: “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.”

Mbappe’s complaint also alleges moral harassment, undeclared work and breaches of PSG’s duty of good faith, pointing to his sidelining in 2023 after he informed the club he would not extend his contract. The forward was excluded from a pre-season tour and forced to train with fringe players, a practice described in France as “lofting.”

The case stems from the breakdown of relations following Mbappe’s refusal to activate the optional extension in his 2022 contract, a decision that left PSG facing the prospect of losing a €300m (£264m/$347m) asset for free, and ultimately did.

AdvertisementAFPPSG’s accusations of loss of revenue and reputational damage

PSG have responded with a colossal counter-claim of €440m (£387m/$510m), arguing that Mbappe’s departure on a free transfer inflicted severe financial and reputational harm. The club insists he acted in bad faith throughout the final year of his contract, with PSG saying in a statement: “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 further argue that Mbappe reneged on what they describe as a verbal agreement to forgo certain bonuses in exchange for being reintegrated into the squad during the 2023-24 season. Their statement adds: “The player challenged an agreement reached with the club in August 2023, which provided for a reduction in his remuneration should he decide to leave freely, in order to preserve the club’s financial stability following the exceptional investment made.”

The French champions also categorically denied allegations of psychological pressure or mistreatment, which Mbappe has been claiming. PSG emphasise that Mbappe still played over 94% of official matches that season, reinforcing that all “sporting decisions were made by a coach who is now a Champions League winner.”

Mbappe’s camp challenges PSG allegations and recounts isolation period

The French captain’s legal team has firmly rejected PSG’s narrative, insisting that the club never provided proof of any agreement to waive bonuses. The player maintains that he was subject to “moral harassment,” pointing to his exclusion from pre-season tours and enforced training away from the first-team squad. His camp argues this treatment created a “hostile working environment” and breached the club’s obligations under the French labour code.

His lawyers highlight that Mbappe’s sidelining began shortly after he informed PSG he would not extend his contract, claiming this amounted to a clear attempt to pressure him into renewing. They repeated that PSG have “never produced any evidence” of a verbal pact on bonuses or salary reductions.

AFPCourt ruling could reshape contract disputes across European football

The star forward, who left PSG having scored a club-record 256 goals in 308 games, believes that the club’s actions were motivated by frustration over his decision to depart for free. His team insists PSG used public pressure tactics to shape the narrative around his exit, a claim the club vehemently denies.

This legal confrontation has quickly become one of the largest and most complex player-club disputes European football has ever seen, and the combined claims push the potential financial outcome of a figure unprecedented in football labour cases.

The tribunal is expected to deliver a decision on December 16, though the case may drag on through appeals.