Contract Dilemma: Should Bayern Munich break the bank to keep Alphonso Davies?

It’s no secret that Bayern Munich faces a challenging situation regarding the contract extension with Alphonso Davies beyond the end of the current season when his current contract at the club expires.

At the start of the year, with Real Madrid seemingly intent on signing the Canadian left-back, Bayern Munich stepped up efforts to secure his services under a new long-term contract. In March, Bayern made what was then considered an improved final contract offer to Davies in the €13 - €14 million range with the Canadian defender reportedly holding out for an annual salary closer to €20 million.

Since Real Madrid did not make an offer to sign Davies during the summer transfer window, much to the delight of new coach Vincent Kompany, Davies started the ongoing season still in the Bavarian colours. Kompany considers Davies to be an important player in his system. However, the 2024/25 season kicked off without a breakthrough for Die Roten in contract talks with Davies.

Jumping forward to the present day, contract negotiations between Bayern and Davies are reportedly still at an impasse. As things currently stand, the player can sign a pre-contract agreement in January with Real Madrid or any other club to join the team on a free transfer in the summer.

As bleak as things may currently seem for Die Roten in terms of retaining Davies beyond June, his agent – Nedal Huoseh has recently denied reports of an agreement with Real Madrid or any other club, thereby leaving the door still open for Die Roten. With that out of the way let us now look at the pros and cons of Bayern Munich stepping up efforts to hold on to Alphonso Davies from both sporting and financial perspectives.

Sporting reason to keep Alphonso Davies

Alphonso Davies is undeniably one of the best left-backs in world football. Based on his fit in Vincent Kompany’s system, it is extremely difficult to find a like-for-like replacement for him. Currently, a left-back with equally outstanding attacking prowess and recovery ability is a rare commodity. Without a player like Davies in the squad, Vincent Kompany’s high-line defense would be easy to breach.

Financial reason to keep Alphonso Davies

Davies currently earns an annual salary in the vicinity of €11.25 million. Hypothetically, increasing his annual salary by say seven million euros would save the club a significant amount in terms of net monetary outlay for the financial year, compared to purchasing a new left-back even if the new player joins at a lower salary. (Salary stats: Capology)

Sporting reason not to negotiate any further with Alphonso Davies

Although it would be a bitter pill to swallow if Davies were to leave Bayern on a free transfer, and even more painful if he were to join the likes of Real Madrid (a painful reminder of Toni Kroos and David Alaba), players coming and going is all part of the business.

If Davies is to leave Bavaria, then clarity is needed sooner rather than later. If a decision is reached by January, then a potential replacement such as Adam Aznou could be given increased exposure and the chance to stake a claim for the left-back spot during the second half of the season. Aznou at only 18 years of age is already a full Moroccan international. If he turns out to be the successor to Davies then it would be another tip of the hat to Bayern’s youth-development program.

Financial reason not to negotiate any further with Alphonso Davies

Considering the current structure of Bayern’s wage bill, it is unreasonable to expect that a left-back’s annual salary would be anywhere close to that of Harry Kane who earns in the vicinity of €25 million. Additionally, with a contract extension currently in the works for Jamal Musiala, €20 million for Davies just isn’t realistic.

By now, Alphonso Davies and Nedal Huoseh would be well aware of Die Roten’s wage structure along with the board’s desire to reduce the overall wage bill ahead of the 2025/26 season. It’s also hard to believe that Real Madrid would offer Davies an annual salary of €20 million when the team needs strengthening in other areas as well. Taking these factors into consideration, it’s not unreasonable to think that the representatives of Davies are leveraging the situation to get the highest salary possible; nothing unusual from a negotiation point of view for the agent and player.

Last but not least, there is the image of Bayern Munich to consider. Bayern chiefs would not want the club to be viewed as one whose hand can be forced in the eyes of its own players or those of other teams. That would be a major disadvantage going forward with regard to future negotiations.