They don't want to suffer losses because if that happens, it's clear that this will make them lose quite a lot financially.
The choice is 2. If indeed PSG cannot get a new contract then selling is a certainty and at the moment Madrid is their hope.
But with the current conditions, Perez will indeed be played a little like when Madrid was played the previous season.
PSG feels now if selling him will be far profitable rather than keeping him for 1 more season. it's caused by PSG wants him to extend his contracts for another season. I can understand what PSG feels by seeing mbappe's letter if he will not activate his option to extend his contract.
This drama will always happen until there will be one of them that will be winning the case. It's still remain unknownn now whether PSG or mbappe will be coming as a winner in this case or not.
Selling is most profitable way at this moment but the problem who's gonna be buying this player with such price? it sounds non sense to see that if PSG was putting more than 200 millions as his price tag.
It's not officially confirmed but i think that will be impossible for other club to buy him with such price. His price needs to be decreased a lot first.