Promotion-winning season saw Cardiff City absorb $47 million loss

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En route to winning last year’s Championship, Cardiff City lost just over $47 million, the club’s accounts reveal. The total brings the club’s current debt to over $194 million, though the team’s place in the Premier League along with a mechanism to convert debt to shares are expected to improve the team’s financial outlook.

According club chairman Mehmet Dahlman, a place in the first division means last year’s spending can be offset by this year’s income, with the increased revenues associated with Cardiff’s Premier League status set to eliminate the club’s $194-million hole.

“If we remain in the Premier League, debt will not exist and profit will begin to accumulate,” the chairman told Welsh radio (according to the BBC), “which means better players, better football and so on.”

A big part of eliminating that debt will be current owner Vincent Tan’s willingness to accept shares in lieu of cash for investments made in the club.

“We want to get rid of the debt by converting to equity,” Dahlman said of the current $108.7 million owned Tan. Since taking over the club in 2010, Tan has put over $247 million into the team, an investment he’s willing to forgive to increase his share in the team.

“[Taking equity] means Vincent Tan will own this club 98%. And it will have no debt.”

Among the more interesting aspects of the BBC’s report are comments from Keith Morgan, an accountant who sits on the board of Cardiff’s supporters trust. Underscoring the gravity of the team’s increasing debt, Morgan concedes the situation will be fine provided Tan is willing to accept shares instead of cash. If, however, that promise doesn’t persist, “we’re knackered,” Morgan says.

In that way, Cardiff’s situation is not unlike Chelsea’s previous states, with the London club having periodically been indebted to their own owner, Roman Abramovich. Those debts, forgiven in 2007 ($1.37 billion in debt turned into equity), have never come back to haunt the Blues, who have grown into one of the world’s most affluent clubs under their owner.

On a smaller scale, Tan has had similar effects as Abramovich, the latest financial reports showing how crucial the Malaysian businessman’s investment was to securing the Bluebirds’ place in the Premier League (increasing payroll by 45 percent last season). If, however, the club ceases to provide a return on his investment — if they get relegated back to the second division — will these debts come back to haunt Cardiff City? Or will Tan seek to flip his investment before making good on his promise, saddling whomever takes his place with an obligation to the former owner?

Until that obligation is converted into shares, there’s always going to be a doubt, but while Tan remains true to his word, the much-maligned owner continues to fuel the club. Saving the team from a perpetual state of near-administration, Tan has spent to get the club to the top-level. And if the club’s management is correct, that investment will be rewarded with increased equity in a team whose value will grow with every year in the Premier League.

Germany mulls letting China under-20s play league soccer

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BERLIN (AP) The German soccer federation is mulling a proposal to allow China’s under-20 team to play friendly matches in the fourth tier of its league system.

Because the Southwest Regional League is comprised of 19 clubs, each currently has two match-days free that can be used for friendly games. The one-off action would allow China’s under-20 team to prepare for the 2020 Olympics in Tokyo.

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“Nothing has been fixed yet but the clubs are all in favor,” league president Felix Wiedemann told The Associated Press on Thursday. “There’s a lot of interest in it. It’s important to say that there will be no points at stake, so it won’t influence the outcome of the league.”

Clubs would receive about 15,000 euros ($16,700) in compensation for two home games against the Chinese side, if the plan is approved. The Chinese are planning on a base near Heidelberg in the state of Baden-Wuerttemberg.

Southwest Regional League members are meeting on July 11, when a decision will likely be made in consultation with the German soccer federation, Wiedemann said. The league kicks off at the end of the month.

China and Germany agreed to a five-year soccer partnership last November, aimed at developing the game in China with training and other programs.

WATCH LIVE: Australia vs. Cameroon in Confederations Cup

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Australia and Cameroon fight for their Confederations Cup lives on Thursday at 11 a.m.ET live on Telemundo Deportes.

[ WATCH LIVE: Cameroon vs. Chile on Telemundo Deportes ]

Cameroon will have its top attacker in the form of Vincent Aboubakar in its bid to overcome an opening loss to Chile, while Australia will hope goalkeeper Maty Ryan can get the job done following a 3-2 loss to Germany.

Germany and Chile square off at 2 p.m. ET.

Reports: De Boer offered Crystal Palace manager’s spot

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Multiple reports claim Crystal Palace has offered its managerial position to Dutch boss Frank De Boer.

Palace has been without a manager since Sam Allardyce retired after the season. The Eagles finished 15th in the Premier League, five points behind eighth place Southampton and seven points clear of the drop zone.

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An accomplished defender at Ajax and Barcelona, the 47-year-old De Boer led Ajax in his first managerial stint before spending less than three months at Inter Milan last season.

De Boer twice won the Rinus Michels Award as the top manager in Dutch football, and would become just the second Palace manager from outside the British Isles.

He would inherit a very good group of attackers with Wilfried Zaha, Christian Benteke, and Andros Townsend. Palace also has a talented midfielders Luka Milivojevic and Yohan Cabaye to go with marauding Dutch back Patrick Van Aanholt.

Farcical officiating at end of Mexico-New Zealand match (video)

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Mexico should be counting their Confederations Cup blessings in congested Group A after a prolonged shoving match at the end of its 2-1 win over New Zealand on Thursday somehow ended with a single red card.

New Zealand is fortunate, too, but the All-Whites have already seen their hopes of the knockout round extinguished by a pair of losses in Russia.

With New Zealand counterattacking in hopes of a late equalizer, Mexico’s Diego Reyes pulled back charging Niko Boxall. It was the second pull back in minutes after Rafa Marquez went uncarded at the other end, and Boxall reacted poorly by lunging cleat-first into Hector Herrera’s calf.

Referee Bakary Gassama should’ve easily pulled two red cards there, but lost his focus in an ensuing melee that saw Herrera charge back to knock down Boxall, headbutts between Diego Reyes and Andrew Durante, and an absurd hand-throwing performance from Javier Aquino. Perhaps this lapse was understandable, which is why he had Video Assistant Referee available.

Even video couldn’t get it right, as a long and sloppy review was seemingly bungled by the referees saw a trio of yellow cards given to Boxall, Reyes, and Herrera.

All three should’ve been sent off, and otherwise Man of the Match contender Aquino and his teammate Marco Fabian should not have escaped discipline by any stretch of the imagination. If Gassama needed it to be level, Michael McGlinchey, Ryan Thomas and Durante could’ve left the match as well.

Instead, a terrific match has been left in the lurch. Will FIFA have the guts to issue supplemental discipline ahead of the important final matches of the group stage?