Paris Saint-Germain (PSG) is facing the possibility of being banned from participating in this season’s Champions League after the French club was accused by forward Kylian Mbappe of owing him €55 million in unpaid wages and bonuses.

Mbappe had a seven-year association with the French club, during which he won six Ligue 1 titles and reached the Champions League final in the 2019-2020 season. In May, Mbappe announced his decision to leave PSG, expressing gratitude to the fans. After departing PSG, he joined Real Madrid and made a notable debut by scoring in the UEFA Super Cup match against Atalanta on August 15.

Despite his move to a new club, Mbappe is still embroiled in a financial dispute with his former team. The 26-year-old superstar claims that PSG is refusing to pay him €55 million, which includes a signing bonus of €36 million due in February and three months’ wages and bonuses for April, May, and June.

After failing to receive a response to his payment request, Mbappe has taken the issue to the legal departments of UEFA, the French Football Federation (FFF), and the Ligue 1 organizing committee (LFP) for arbitration.

The LFP has the authority to impose severe penalties on PSG, including transfer bans and the revocation of their UEFA license. This could lead to PSG being immediately banned from the Champions League if they fail to meet their wage obligations.

UEFA regulations also require clubs participating in their competitions to provide evidence that they are not in arrears with player or staff wages by February 28 each year. If PSG does not resolve the issue with Mbappe, they risk losing their UEFA license and being excluded from the Champions League this season.

PSG maintains that Mbappe agreed to forgo these payments if he left the club as a free agent, but according to French media, no formal agreement on this matter was approved between the two parties since 2023. In February, PSG paid €78 million to try to keep Mbappe, but was willing to let him join Real Madrid on the condition that the Spanish club would pay a transfer fee. PSG’s asking price was €78 million, but Real Madrid refused to pay any amount for the transfer.

As a result, PSG did not pay Mbappe’s wages and bonuses for the final three months of his contract, which ended on June 30. The forward signed with Real Madrid on July 1 as a free agent.

Mbappe could potentially take the matter to a French court if a resolution cannot be reached. This situation poses a significant threat to PSG’s participation in Europe’s premier club competition and adds to the ongoing tension between the French player and his former club.