European soccer feels force of PSG and Qatar’s ‘soft power’

One can be forgiven for thinking the football world has been turned on its head over the past month.

For the second time in a matter of weeks, Paris Saint-Germain have made an earth-shattering deal. Backed by Qatari ownership, the French club inked a one-year loan for 18-year-old forward Kylian Mbappé with a reported transfer fee of $216 million set for next summer.

In any other transfer window, Mbappé’s deal would steal all the headlines. Yet it falls short of future strike partner Neymar’s fee of $260 million, part of a reported total package of nearly half a billion dollars signed by the Brazilian last month.

Although both figures dwarf Manchester United’s $105 million record signing of Paul Pogba set just last year, there is more than just inflation in play, say analysts.

“For Qatar, capturing Neymar realizes the dream when it bought (PSG) in 2011,” says James Montague, author of “The Billionaires Club: The Unstoppable Rise of Football’s Super-rich Owners.”

“Namely, to be at the very top table of European soccer, signing top players in their prime and appearing to be just as an attractive option as Barcelona and Real Madrid.

“This adds to the power of PSG’s brand, which ultimately helps to promote Qatar internationally,” he adds.

Kylian Mbappé scored in France's 4-0 World Cup qualifier win against Holland on Thursday.

READ: ‘Nobody is worth $260M’

Playing hardball with soft power

The concept of soft power, which the British Council defines as “a country’s ability to make friends and influence people not through military might, but through its most attractive assets, notably culture,” has been a part of international sports since the dawn of the modern Olympics.

But its rise in club football came to prominence once the rulers of Abu Dhabi purchased Manchester City in 2008, in part as a game of “one upmanship in the intense competition” with Dubai, its prospering neighboring emirate, Montague highlights in his book.

“When you have states buying football clubs,” he says – noting the blurred line between state funds and private wealth in the region – “their interest is to burnish their reputations. This is a soft power issue. This is a political issue.”

DOHA, QATAR: In this handout image supplied by Qatar 2022 on May 17, 2017, Qatar's Supreme Committee for Delivery & Legacy launches Khalifa International Stadium, the first completed 2022 FIFA World Cup venue, five years before the tournament begins. (Photo by Supreme Committee for Delivery & Legacy/Qatar 2022 via Getty Images)

Related article Qatar World Cup 2022: Tournament's sanctity a bargaining chip for Gulf foes

Dubai, it should be noted, made a splash back in 2004 by placing the name of its state carrier, Emirates Airlines, on Arsenal’s new stadium in a reported deal of approximately $160 million that included jersey sponsorship.

Not to be outdone, Abu Dhabi branded Manchester City with its carrier, Etihad, in a reported $640 million deal in 2011.

Meanwhile Qatar, via its national carrier and the charitable Qatar Foundation, inked its own sponsorship deals with Barcelona. Then in 2011 it purchased a controlling interest in the French capital’s marquee club.

PSG was asked to comment on the influence of its transfer policy by owners Oryx Qatar Sports Investments, but did not respond to CNN.

“Football is unquestioned in its international reach and adulation,” says Montague, “so if you want to project an image of yourself on an international stage, there is no greater vehicle than a suitable football club.

“Owning a football club, sponsoring a stadium, having your name on a shirt, being seen in over 200 countries around the world, week in, week out, without any kind of negative connotations feeding into people’s homes: That is an incredibly powerful tool to mold an image on an international stage.”

After telling Barcelona he wanted to leave the club, Brazilian football star Neymar is heading to Paris Saint-Germain. PSG has activated his $263 million buyout clause, which is a world-record fee for a player transfer.

Neymar fends off Japan's Takuya Okamoto during the U-17 World Cup in October 2009. Earlier that year, Neymar made his professional debut for Brazilian club Santos -- the same club that once fielded the legendary Pele.

Neymar makes a heart gesture after scoring a goal for Santos in August 2010. That season, he scored 42 goals in all club competitions.

Neymar celebrates after Santos won the Copa Libertadores in June 2011. It was the first time since 1963 that Santos had won the top club competition in South America.

Neymar battles Argentina's Lionel Messi during an international friendly in June 2012. The two would later become teammates at Barcelona.

Neymar holds his son, Davi Lucca, at a Santos match in May 2013.

In June 2013, Neymar was unveiled as Barcelona's new star signing.

Brazil was the host of the 2014 World Cup, but the tournament ended painfully for Neymar. He suffered a fractured vertebra in the quarterfinal victory against Colombia, and the Brazilians were trounced by Germany in the semifinals.

Neymar lifts the trophy after Barcelona won the Champions League in June 2015. It completed a historic treble for the Spanish club, which also won the league and the Copa del Rey that season.

From left, Messi, Neymar and Luis Suarez pose for a photo after Barcelona won the FIFA Club World Cup in December 2015. The three attacking players have been an imposing force together.

Neymar competes with Germany's Sven Bender during the 2016 Olympic final in Rio de Janeiro. Neymar's goal in the penalty shootout clinched the gold medal for Brazil.

Neymar and his Brazilian teammates show off their Olympic gold medals.

Neymar celebrates a goal against Colombia during a World Cup qualifier in September 2016. He has scored more than 50 goals for his country's senior team.

Since arriving to Barcelona in 2013, Neymar has helped the club win the Champions League, two league titles and three Copa del Reys. He has scored more than 100 goals.

Neymar tries an overhead kick during a Spanish league match against Villarreal in May.

Neymar sits next to another world-famous athlete -- Formula One champion Lewis Hamilton -- while attending Game 2 of the NBA Finals in June.

A boy wearing Neymar's jersey walks past a new Barcelona poster -- without Neymar -- as it is put up outside the Camp Nou stadium on Wednesday, August 2.

Neymar juggles a ball Friday, August 4, after he was unveiled to the media as Paris Saint-Germain's newest signing. His transfer fee was more than double the previous world record.

Neymar: The world's most expensive footballer

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READ: Meet PSG’s new $216M star Kylian Mbappé

Can anyone else compete?

Profits, apparently, take a back seat to image building when it comes to the likes of Manchester City and PSG.

Between 2009 and 2016, City posted a loss of approximately $1 billion, according to Roger Bell, author of the football finance report “We’re So Rich It’s Unbelievable! – The Illusion of Wealth Within Football.”

“The numbers are quite startling,” Bell told CNN Sport, adding that Chelsea, owned by Russian billionaire Roman Abramovich, lost nearly $675 million in that time frame. “The issue is, are they making it difficult for everyone else to compete?”

In his report, Bell notes that 60 to 80% of revenues from most English Premier League clubs are generated from lucrative TV rights sales. Those rights appear under threat given the viewing habits of younger audiences less inclined to pay for expensive cable and satellite TV packages.

The world’s richest sports league, the NFL, posted a nine percent drop in viewership for most of last season, according to research analysts MoffettNathanson. SKY TV, the Premier League’s main carrier in the UK, suffered a 14% fall in its live football coverage last season, according to the FT.

So, while the likes of Manchester City and PSG appear immune to a fall in viewership numbers – though perhaps not a fall in energy prices – their competition in Europe may not be as sheltered.

Naby Keita: RB Leipzig - Liverpool ($62 million) —

After starring for RB Leipzig last season, Liverpool agreed a deal for Naby Keita to move to Merseyside in July 2018. The $62 million deal will be a club record for Liverpool and will make Keita the most expensive African player ever. The Guinean international was included in last seasons Bundesliga Team of the Year, and will look to solidify Liverpool's worries in central midfield following Jordan Henderson's long term injury problems.

Neymar: Barcelona → PSG ($261 million) —

Brazilian forward Neymar, 25, became the most expensive player in the history of world football on August 4, just a week after Barcelona said he would "200%" be staying. PSG's total outlay, including wages and agent fees, is likely to exceed half a billion dollars over the course of his five-year contract..

Romelu Lukaku: Everton → Manchester United: ($94.6 million) —

Although Romelu Lukaku looked destined to re-sign for Chelsea following the end of the 2016/2017 season, the Belgian forward instead opted for a reunion with Jose Mourinho at Old Trafford, as Manchester United look to challenge for the Premier League. Lukaku, 24, was a key component of Everton's success last season, guiding the Toffees to fifth having scored 40% of the side's Premier League goals.

Alvaro Morata: Real Madrid → Chelsea ($71.4 million) —

Spanish international striker Alvaro Morata joined Chelsea in July in a club-record deal, surpassing the $63 million the Blues paid for Fernando Torres in 2011. Morata, 24, scored 15 league goals from just 55 shots for Real Madrid en route to winning the 2016/17 La Liga title.

Benjamin Mendy: AS Monaco → Manchester City ($66.2 million) —

Pep Guardiola completed the revamp of his Manchester City backline with the signing of French left back Benjamin Mendy from Monaco in July. The athletic 23-year-old signed for the Ligue 1 side in the summer of 2016, making 25 league appearances en route to the French title.

Alexandre Lacazette: Lyon → Arsenal ($72.6 million) —

Alexandre Lacazette starred for Lyon last season, scoring 37 goals in 45 appearances for the French side. The 26-year-old boasted an eye catching record of 10 penalties converted in Ligue 1 and, with Arsenal's conversion rate from the spot last year (66%) in mind, Arsene Wenger will be hoping that the club's record signing can replicate his previous form.

Gylfi Sigurdsson: Swansea City → Everton ($57.6 million) —

Icelandic set piece specialist Gylfi Sigurdsson became the eighth signing of a productive window for Everton boss Ronald Koeman in August, joining for a club-record fee. The attacking midfielder, 27, covered more ground (433 kilometers) than any other Premier League player in 2016/17, directly contributing to 22 Swansea goals.

Kyle Walker: Tottenham - Man City ($58.7 million) —

After missing out on Dani Alves, Manchester City hunted down long-term target, Kyle Walker. The right-back, who fell out of favor towards the end of last season at Mauricio Pochettino's Tottenham and only started four of the team's last 12 matches, joins City in a record fee for a defender.

Bernardo Silva: AS Monaco → Manchester City ($55.9 million) —

Following an impressive Ligue 1 title-winning season, where the Portuguese international chipped in with a goal or assist every 147 minutes, Bernardo Silva joined a Manchester City team eager to improve on last season's third-place finish in the Premier League.

Tiemoué Bakayoko: AS Monaco - Chelsea ($51.7 million) —

Tiemoué Bakayoko links up with French international teammate N'golo Kante to make up Chelsea's central midfield duo. The 23-year-old impressed for Monaco in the Ligue 1 club last campaign, winning 57 tackles and 62 aerial duels over the course of the season.

Leonardo Bonucci: Juventus → AC Milan ($48.4 million) —

AC Milan's new owners made their intentions to rebuild clear with the signing of Italian international central defender Leonardo Bonucci. His transfer, from Serie A rival Juventus, involved the highest fee ever for a player aged 30 or over.

Douglas Costa: Bayern Munich → Juventus ($6.8 million loan fee with option to buy for $45.6 million in 2018) —

Douglas Costa departs the Allianz Arena two seasons after joining the German side, where he scored 14 goals in 77 appearances. The former Shakhtar Donetsk star saw his chances limited last season after he was sidelined due to an hamstring injury sustained in September, before enduring another extended spell on the sidelines with a knee problem.

James Rodríguez: Real Madrid → Bayern Munich ($11.4 million loan fee with option to buy for $39.9 million in 2019) —

Colombian international James Rodriguez joined Bayern Munich on a two-year loan looking to revive his promising career after a mixed three seasons at the Bernabeu, where he managed 28 league goals and 22 assists in 77 appearances for the club.

Victor Lindelof: SL Benfica → Manchester United ($39.1 million) —

Swedish center back Victor Lindelof missed just two league matches of Benfica's title-winning 2016/17 campaign, during which the Portuguese club conceded a mere 19 goals in 34 league matches.

Vinicius Junior*: Flamengo → Real Madrid ($48.9 million) *Player will officially join Real Madrid in July 2018 —

Vinicius Junior became one of the most expensive teenagers in the history of world football when Real Madrid agreed a fee just 11 days after his professional debut in Brazil's Serie A. The 17-year-old will remain with parent club Flamengo this season.

Corentin Tolisso: Lyon → Bayern Munich ($47.3 million) —

Corentin Tolisso leaves Lyon following three seasons with the seven-time French champions, where he scored 29 times and contributed with a further 17 assists in 160 appearances.

Ederson: SL Benfica → Manchester City ($44.5 million) —

With England first choice keeper Joe Hart expected to depart the Etihad stadium, Manchester City's goalkeeping troubles have been eased with the signing of Ederson. The Brazilian impressed in his two seasons with SL Benfica, keeping 32 clean sheets in 58 appearances.

Mohammad Salah: AS Roma → Liverpool ($44.1 million) —

Former Chelsea midfielder Salah joins Liverpool on the back of an impressive season with AS Roma, where the Egyptian's 19 goals and 15 assists helped I Giallorossi to a second-place finish. Salah created a team-leading 71 chances over the course of last season's Serie A campaign.

Antonio Rudiger: AS Roma → Chelsea ($43.8 million) —

Antonio Rudiger's stellar performances for Germany's Confederations Cup winning side were enough to convince Chelsea boss Antonio Conte the 24-year-old should become his newest defensive signing, as the Blues look to strengthen their backline in hopes of retaining the Premier League title.

Anthony Modeste: FC K?ln → Tianjin Quanjian ($39.8 million) —

The 28-year-old Anthony Modeste had a late breakthrough season during the 2016/17 campaign where he found the back of the net 27 times in 37 appearances for FC K?ln. Modeste joins a Tianjin side eager to challenge Guangzhou Evergrande's dominance after Luiz Felipe Scolari's team won the last six Chinese Super League titles.

Andre Silva: FC Porto → AC Milan ($43.3 million) —

Even though Andre Silva's FC Porto fell just short of first place and were beaten to the Primiera Liga title by local rival SL Benfica, his 22 goals in 41 appearances proved enough to secure his move to a rebuilding AC Milan.

Jordan Pickford: Sunderland → Everton ($38.6 million) —

Although Jordan Pickford only boasted a 15% clean sheet success rate last season, the 23-year-old was arguably Sunderland's only bright light following a disastrous 2016/2017 campaign in which the Premier League side was relegated to the second tier of English football.

Michael Keane: Burnley → Everton ($38.6 million) —

Manchester United academy graduate Michael Keane was key to Burnley's success in his three seasons with the club, and joins Everton in the hope of filling the hole that Manchester City center back John Stones left when he departed Goodison Park in 2016. Keane won 136 aerial duels over the course of last season.

Davy Klaassen: Ajax → Everton ($30.4 million) —

Davy Klaassen's Ajax finished the season without securing any silverware, but the 24-year-old did guide his side to the Europa League final.

Theo Hernandez: Atletico Madrid → Real Madrid ($29.6 million) —

Theo Hernandez has become one of the few that have dared to make the cross-city switch from Atletico to Real Madrid following his eye-catching performance whilst on loan at Deportivo Alavés. The 19-year-old made 37 appearances for the Basque side, averaging two tackles per game.

Andrea Conti: Atalanta → AC Milan ($28.5 million) —

Acting as the centerpiece of Atalanta's historic 2016/2017 season where the side beat out the likes of Inter Milan, Lazio and Fiorentina to a fourth-place finish, Conti joins AC Milan to become a part of their major redevelopment. The 23-year-old was a pivotal part of the league's fourth best defence, conceding 41 goals and keeping 14 clean sheets.

Dani Alves: Juventus → PSG (Free Transfer) —

Alves looked set for a reunion with former Barcelona manager Pep Guardiola at Manchester City, but instead opted to join a PSG side determined to clinch the Ligue 1 trophy once again. The 34-year-old left Juventus following a one-year spell with the club, where he averaged 2.6 successful tackles per game.

Paris Saint Germain made Mbappe the second most expensive player in history as they brought the French international back to his hometown to play alongside Neymar in a frontline worth close to half a billion dollars.

Summer transfer window: 25 major moves

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Montague, for one, seems less concerned with declining TV ratings.

“There are still huge opportunities when it comes to other forms of watching (football),” he says. “Remember, although people are cutting chords, they are still watching. They are just watching it in different ways.

“You’re going to see new players in the market,” he says, noting Twitter’s involvement in streaming live sports.

READ: Liverpool agree to $62 club record fee for Keita

READ: English soccer’s first openly gay referee has a lot to say

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‘Half a billion is peanuts’

For PSG and its Qatari owners, the soft power plays of purchasing football magicians like Neymar and Mbappé appear to be working.

But Qatar’s main football ambition – hosting the much maligned 2022 World Cup – has generated mixed results since the bid was awarded in 2010.

The country’s recent stalemate with neighboring UAE, Bahrain and Saudi Arabia – who have levied terror-funding accusations against the country, among other charges (all which have been vehemently denied by Qatar) – is a prickly thorn in its quest to host the tournament without blemish.

“Ultimately, (the World Cup bid) hasn’t been the positive experience I think they were hoping for,” says Montague. “They’ve been putting out fires almost since they day they won it.”

Indeed, Qatar has battled charges of manipulating the World Cup voting process – which it has been cleared of by FIFA – and of poor treatment of migrants building the tournament’s stadiums. The country’s human rights record that includes a ban on homosexuality has also been put into question.

“It’s brought a magnifying glass on Qatari society that I don’t think it was prepared for, and I don’t think it’s particularly happy about it,” adds Montague.

When asked for comment, a Qatar government official said: “Qatar has always said the 2022 FIFA World Cup would accelerate the nation’s development goals, and act as a catalyst for continued progress across workers’ welfare and labor reform.

Neymar has scored three goals in three Ligue 1 games since joining PSG.

With Neymar and Mbappe can PSG win the Champions League this season? Have your say on our Facebook page

“This World Cup is delivering programs that boost the economy, develop skills across Qatar and the region, and inspire and accelerate development to drive effective social change in communities.”

In the meantime, the introduction of PSG’s two superstars is a powerful counterbalance to the ongoing Gulf crisis and those accusations, says Montague – despite the record fees.

“The money is actually a drop in the ocean for Qatar Sports Investments,” he says, “for the chance to turn PSG into a Barcelona-style super club that promotes Qatar around the world.

“And to prove to its neighbors that whatever blockade they put up, they can still operate as before, if not stronger?” adds Montague.

“In those terms, half a billion dollars is peanuts.”