Neymar - Everyone is talking about it

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Neymar’s move to Paris St-Germain from Barcelona for a record signing of 222m Euros (£200m).

Money is the subject that is dominating the headlines on this story and for good reason.

With a huge signing fee like this comes a huge income and Neymar will be earning £27,932,840 a year.

People may think that’s normal for one of the largest clubs in Europe but let’s break it down even more this is no normal salary.

Neymar will earn £3,200 an hour that’s £53.00 every minute or 88p every second which is basically 1 Euro.  (After tax)

This is just one of the many examples of how crazy the 2017 summer transfer window has been in the football world.

Now there is a reason why Quick Quote Protect, a Life Insurance Broker have written a story on a Brazilian wonder kid moving from one European giant to another and that reason is Income Protection.

The thing that interests us about this record signing is the salary Neymar will be receiving and how it can help you understand how Income Protection works.

Although it’s not normal to earn an income of £3,200 an hour being a footballer is still a job. So, in theory, an insurance provider could provide Neymar with Income Protection.

Obviously, there are many different variables that could come into play here so let’s make it easy for ourselves and talk about a few things hypothetically.

Let's start with the money

Neymar will earn £537,170 a week at PSG after tax.

 Let's round that up to £540,000 (after goal and assist bonuses this might be the figure anyway)

Who are we kidding that Neymar’s bonuses will be 2,830 quid? 

Here comes the Income Protection stuff

Income Protection provides a monthly benefit if the policy holder can’t work due to incapacity.

The level of cover is usually capped at a percentage of your monthly salary some insurance providers may give you up to 70% of your monthly salary if you can’t work due to illness or injury.

Something to remember is insurance providers will probably also have a cap in place for how much you can earn a month and still be able to make a claim. It will probably be a lot less than £2.4 million

This cover can remain in place until retirement age if it needs to, for most people this is usually 65 but for a footballer,  the average age of retirement is 35. Maybe Neymar might have to look at possibly going into coaching if the money starts to run out.

So what happens if Neymar were to become incapacitated?

Neymar has a history of injuries at Barcelona including a Malleolar Injury that meant he missed 10 games over a 5 week period (there is a high chance he was still paid for that period). Something that is becoming more common is ‘Pay to Play’ this first became popular when Louis Saha signed a new deal at Everton under David Moyes.

This was due to Louis being injury prone and Everton couldn’t risk paying him weekly and him not playing. The ‘Pay to Play’ contract meant if he played on the weekend he got his weekly wage. This was a very clever incentive to get a player back fit and playing and a way to not waste money.

Back to Neymar

Let’s talk hypothetically; because of PSG know about Neymar injury history let’s say they have put him on a ‘pay to play’ contract, now if Neymar were to have Income Protection and suffer from another malleolar injury and was out for 5 weeks that would mean he misses out on 5 weeks pay.

That would be £2.7M missed out on, but if he had Income Protection a malleolar injury would mean he is unable to do his job, which means he would be able to make a claim. Like previously mentioned some insurance providers can offer 70% of what your income would be so this means Neymar could receive £1.89m in Income Protection benefits which could help him pay the household bills or his mortgage.

Just to be clear Neymar isn’t on a ‘pay to play’ contract this is purely used to help you understand how Income Protection could help him and you.

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