BRITAIN-RUSSIA-METALS-MINING-COMPANY-NORILSK-RUSAL-HONGKONG- FIL

Chelsea, Manchester City’s new means of dealing with Financial Fair Play

5 Comments

Major League Soccer commissioner Don Garber claims his league is losing between $75-$100 million a year, a claim more likely a pre-collective bargaining stance than anything reflecting the league’s true financial health. The claim does, however, highlight the state of MLS’s maturation. With signings like Clint Dempsey’s and Michael Bradley’s, and with investments from clubs and the league helping the teams move beyond their first generation venues, it’s easy to slant the books to make the league seem more impoverished than it actually is. Put those big, long-term commitments on the books now, and leave the league to look thriving once a new collective bargaining agreement is signed.

They’re the same type of machinations that could also help the league’s new partner deal with UEFA’s Financial Fair Play regulations. Manchester City, who this week also acquired Melbourne Heart in Australia, have become one of Europe’s big spenders since Abu Dhabi United took over the team in 2008. They’ve paid a premium to bring the likes of Yaya Toure, Sergio Aguero and Fernandinho (among others) to greater Manchester. In the process, they’ve served as one of the poster boys in UEFA president Michel Platini’s quest to get big clubs’ spending in line with their incomes.

Designated Players and Manchester City’s new Marquee contract havens

That’s where MLS (and the A-League, two leagues with permeable salary caps) come in. With no FFP-esque oversight in CONCACAF or its Asian counterpart, the AFC, those highly speculated Gareth Barry-esque loans become a way to get inefficient contracts off the books, giving City some extra room beneath UEFA’s spending ceilings. If City can send Barry’s salary ($10.37 million) and, say, Javi Garcia’s ($7.26 million) to NYCFC while claiming their child club will cover the wages, the parent team all of a sudden has a significant amount of breathing room on their books. While Abu Dhabi United adds money directly to NYCFC’s coffers, City gets some FFP flexibility they wouldn’t get if their owners were merely writing checks to the club.

Under FFP, UEFA has the power to investigate these shady dealings. The problem is, on the books, this won’t look shady. City will loan the players to NYCFC and have their wages covered by their partner. NYCFC will simply pay for them and either not have to explain that Abu Dhabi United’s simply shifting money from one pile to another or confess that’s what’s happening while asking ‘why shouldn’t we be able to do this?’

Of course, that’s all speculation. NYCFC is still a year away from taking the field. Who knows what their team will look like? Yet, if Manchester City so choose, they can fill their new teams’ three Designated Player spots with City’s less useful contracts. They can do the same at Heart with the A-League’s Marquee Player rule (one per team). With whispers around MLS saying City has already secured promises for more lenient spending rules (perhaps more Designated Players), it’s not difficult to imagine the Australian federation  making similar guarantees to lure a high-profile owner.

source: Getty Images
On loan at Everton this season, midfielder Gareth Barry has been linked with a move to NYCFC for 2015 – the new franchise’s debut season in Major League Soccer. (Photo: Getty Images)

In the grand scheme of things, it could be seen as nitpicking at the margins. On the other hand, if City are able to take four contracts that aren’t significantly contributing to their team, move them abroad, and get room within FFP to replace them, those could be the type of margins that make a difference at the highest levels. Given the gap between Arsenal and City at the top of the Premier League, or the gap in quality between Barcelona and City in their UEFA Champions League Round of 16 matchup, every little bit could help.

When UEFA implemented FFP, it’s unlikely they anticipated these kinds of maneuvers. As Platini spoke against the continued spending of his confederation’s biggest clubs, he never spoke about the possibility of “player havens” popping up across the globe. It’s unlikely that’s Manchester City’s sole intent (the growth possibilities alone in MLS and the A-League justify the expenditures), but the havens are still a nice coincidence. How many of Europe’s top teams would pay a one-time $100 million fee to have a permanent FFP work around?

Chelsea: Udinese, on a totally different level

In a completely different way, one City’s Premier League competitors appear to be developing a different work around, one that was evident when they sold Kevin de Bruyne to Wolfsburg. Although Chelsea never significantly used their young Belgian attackers (loaning him out for 1.5 of his two years at Stamford Bridge), they were able to turn a nice profit on the former Genk star. Having become the Wolves’ record signing earlier this month, the near-$15 million Chelsea netted in transfer fees will go toward their FFP bottom line. Though wages and other expenses take a bite into that profit, the Blues still made big money off their de Bruyne flip.

For purchases like Mohamed Salah, Chelsea’s unlikely to experience that kind of profit. And with deals like Fernando Torres’s, Gary Cahill’s, Willian’s and Eden Hazard’s, they’ll surely lose money, just as most teams do when they pay their key players. But among the 26 players Chelsea have on loan — including Vitesse’s Christian Atsu, Middlesbrough’s Kenneth Omeruo, and Valencia’s Oriol Romeu — the Blues will have a few more de Bruynes. For every Thibaut Courtois or Romelu Lukaku that eventually breaks into Jose Mourinho’s first team, there may be two eight-figure flips that pad Chelsea’s FFP margins.

source:
Purchased from FC Porto this summer, Ghanaian international Christian Atsu is one of five Chelsea players at Vitesse in the Dutch Eredivisie.

It’s a model that Serie A club Udinese is built on, even if the Giampaolo Pozzo’s team is operating on a much lower level. With 33 players on loan between the Serie A, Granada (Spain) and Watford (England), the Genoa-based club have set up an infrastructure that allows the Bianconeri to scoop up and house prospects across South America and Europe, hoping to find another Alexi Sanchez. Though the Zebras rarely find a player that allows them to collect over $35 million (as the Chilean did from Barcelona in 2011), smaller sales make the model work, with players waiting to be sold making up the squads of Pozzo’s expanding number of clubs.

Instead of paying $1 or $2 million on true prospects, Chelsea’s able to spend much more on more established talents. And while those players’ values mature — while they’re out on loan across Europe — most of the wage burden is being picked up by other clubs, leaving only the balance and an amortized transfer fee on the Blues’ FFP bottom line. Instead of selling on the Sanchezes of the world, Chelsea keeps the stars they develop, with the rest of their sales addressing their financial end.

That end isn’t profitability. It’s Financial Fair Play – rules implemented to try to bring clubs’ spending in line with income. In the case of Chelsea and Manchester City, however, new approaches are (or will) allow them to play beyond FFP’s pure intent. For Chelsea, that means becoming a broker for emerging talent, helping them to either the Premier League or some nice wages while they await their next permanent home. For City, that means setting up franchises across the world, with the rules of each region potentially helping the Citizens transcend UEFA’s limits.

VIDEO: Lee Trundle scores amazing penalty kick

SWANSEA - APRIL 24:  Lee Trundle of Swansea City in action during the Nationwide Division Three Swansea City v Northampton Town held at Vetch Field, Swansea on 24 April 2004 (Photo by Pete Norton/Getty Images)
Getty Images
Leave a comment

Former Swansea City striker Lee Trundle was always known as a bit of a maverick.

He remains no different.

This penalty kick in a charity game sums him up perfectly.

40-year-old Trundle is now an ambassador for Swansea City and is involved with coaching their academy.

Check out the video below as Welshman Trundle goes to trick a goalkeeper that he’s picking up the ball but instead, without moving forward, he knocks it into the top corner.

Confused?

Let the clip below dazzle you.

Report: Arsenal’s Sanchez, Ozil demanding $370,000 per week contracts

LONDON, ENGLAND - APRIL 17:  Alexis Sanchez of Arsenal celebrates with team mate Mesut Ozil of Arsenal after scoring the opening goal of the game during the Barclays Premier League match between Arsenal and Crystal Palace at the Emirates Stadium on April 17, 2016 in London, England.  (Photo by Mike Hewitt/Getty Images)
Getty Images
Leave a comment

Alexis Sanchez and Mesut Ozil want to get paid.

[ MORE: Ranking the superstars ]

A report from the London Evening Standard states that both of Arsenal’s superstars, who are currently in negotiations with the club over a new deal, want in excess of $370,000 per week, which is equal to Paul Pogba‘s salary at Manchester United.

Per the report, Arsenal is willing to offer only $254,000 a week to each of Sanchez and Ozil in their new deal. It is believed that Sanchez currently earns $165,00 per week, while Ozil is the highest earner at Arsenal on $178,000 a week.

Both have just 18 months left on their current deals and in recent months their importance to Arsenal has been underlined.

Sanchez, 27, scored a sensational hat trick at West Ham United in the 5-1 win last weekend and he now has 11 goals in the Premier League this season and is joint-top scorer. Ozil, 28, has eight goals in all competitions this campaign so far, which equals his tally from last season already as the German playmaker has sharpened his focus in the final third.

If the Gunners are going to be serious about challenging for the Premier League not only this season but in the future, they must lock down their star attacking duo for the foreseeable future. However, with Arsene Wenger‘s future uncertain beyond this season the duo may hold out until they have just one year left on their contracts. Previously it is believed Wenger did not want any player to earn more than his $203,000 weekly salary, however Arsenal will have to break the bank, and their notoriously stubborn wage structure, to keep Sanchez and Ozil at the Emirates Stadium.

If they don’t, the likes of Manchester City, Juventus and Real Madrid have been sniffing around the duo and with Cristiano Ronaldo, Lionel Messi and even the likes of Wayne Rooney and Zlatan Ibrahimovic at Manchester United earning over double what Sanchez and Ozil are currently being paid, you can’t argue that they deserve to be pushed up to the next pay bracket.

It’s a huge six or so months in Arsenal’s future with the future’s of Ozil, Sanchez and Wenger still up in the air.

Brazil will play Colombia in friendly for air crash victims

CHAPECO, BRAZIL - DECEMBER 03:  A fan pays tribute to the players of Brazilian team Chapecoense Real at the club's Arena Conda stadium in Chapeco, in the southern Brazilian state of Santa Catarina, on December 03, 2016. The players were killed in a plane accident in the Colombian mountains. Players of the Chapecoense team were among the 77 people on board the doomed flight that crashed into mountains in northwestern Colombia. Officials said just six people were thought to have survived, including three of the players. Chapecoense had risen from obscurity to make it to the Copa Sudamericana finals scheduled for Wednesday against Atletico Nacional of Colombia.  (Photo by Buda Mendes/Getty Images)
Photo by Buda Mendes/Getty Images
Leave a comment

RIO DE JANEIRO (AP) Brazil will play Colombia in a friendly match at the end of January to help victims of the air crash that killed most of the players, staff and directors of soccer club Chapecoense last week.

Spokesman Douglas Lunardi also said on Monday that the Brazilian football confederation will donate about $ 1.5 million to Chapecoense.

Nineteen of Chapecoense’s players were killed in the crash just outside Medellin, Colombia, as the Brazilian team headed to the first of two matches against Colombian club Atletico Nacional to determine the champion of the Copa Sudamericana – Latin America’s No. 2 club tournament.

[ MORE: U.S. Soccer’s Player of Year finalists ]

Earlier, South America’s football confederation Conmebol officially gave the title of the 2016 edition to Chapecoense, as Atletico Nacional requested.

Lunardi said the venue will be decided by Chapecoense directors and that all the ticket office revenues will go to the families of the victims. The most obvious choices, he said, are the historic Maracana stadium in Rio de Janeiro and Chapecoense’s Arena Conda.

“The decision will be between making that tribute at home or get a bigger revenue for the victims,” Lunardi told The Associated Press. “We will let them take their time to make that decision.”

Maracana has a capacity of 78,000 and has hosted two World Cup finals as well as the opening ceremony of the last Olympic Games in August.

Arena Conda is a 22,000-seater. It hosted a memorial service on Saturday for 50 of the 71 victims.

Chapeco, the city of the club impacted by the tragedy, has 200,000 residents and sits about 800 miles (1,300 kilometers) south of Rio.

In a press conference in Chapeco, Chapecoense’s president Ivan Tozzo said the club will decide the venue for the match in the next few days. He also said that the donation from the confederation will help cover the expenses for the memorial services.

UEFA Champions League preview: Arsenal in Basel, Man City hosts Celtic

GLASGOW, SCOTLAND - SEPTEMBER 28: Raheem Sterling of Manchester City takes on Stuart Armstrong of Celtic during the UEFA Champions League match between Celtic FC and Manchester City FC at Celtic Park on September 28, 2016 in Glasgow, Scotland. (Photo by Mark Runnacles/Getty Images)
Photo by Mark Runnacles/Getty Images
Leave a comment

The final week of group stage matches in this season’s UEFA Champions League are upon us, and only a pair of berths remain in Tuesday’s groups.

Those are in Group B, where Napoli, Benfica, and Besiktas enter the day a point a part. Only Dynamo Kyiv has been eliminated, and they’ll host a Besiktas side which is in the catbird seat. If the Turkish side wins, it will finish above either Napoli or Benfica.

Benfica is at home to its Italian rivals, with both sides on 8 points. And they’ll each head to the knockout rounds of Besiktas (7 points) fails to earn a result.

[ MORE: U.S. Soccer’s Player of Year finalists ]

As for our Premier League contestants, Arsenal looks pretty locked into the second seed in Group A. Trailing PSG after a 2-2 draw in London, the Gunners head to Switzerland to face Basel. Arsenal needs to better PSG’s result against visiting Ludogorets Razgrad.

Manchester City hosts Celtic knowing it’s already clinched second place in Group C and cannot catch leaders Barcelona. Expect youth.

In Group D, things are also settled with Atletico Madrid and Bayern Munich 1-2 regardless of what happens in their match in Germany. Atleti is the only team which can finish the group stage 6-0. The last team to achieve that 2014-15 Real Madrid, who swept Basel, Liverpool, and Ludogorets Razgrad.

Tuesday’s UCL schedule
PSG vs. Ludogorets Razgrad
Barcelona vs. Borussia Monchengladbach
Bayern Munich vs. Atletico Madrid
Manchester City vs. Celtic
Basel vs. Arsenal
Benfica vs. Napoli
PSV Eindhoven vs. Rostov
Dynamo Kyiv vs. Besiktas

Follow @NicholasMendola