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

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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.

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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.

Inexperienced Southgate given first shot at vacant England job

BURTON-UPON-TRENT, ENGLAND - SEPTEMBER 05:  Gareth Southgate the manager of England U21's looks on during a training session at St Georges Park on September 5, 2016 in Burton-upon-Trent, England.  (Photo by Alex Livesey/Getty Images)
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MANCHESTER, England (AP) After the acrimonious departure of Sam Allardyce, England’s national soccer team is temporarily in the hands of a man who said just three weeks ago that he wasn’t ready for such a high pressure job.

Yet interim coach Gareth Southgate may end up keeping it given the paucity of top-class English managers around.

The English Football Association’s preference is that an Englishman coaches the national team, but there’s hardly a queue of top-quality candidates.

[ MORE: MLS Playoff Picture gets clearer ]

Alan Pardew, Eddie Howe and Steve Bruce are high on the list of bookmakers’ favorites to be the next England coach, yet none of them have managed a so-called big club in the Premier League or coached a team in the Champions League. Pardew and Howe are in charge of unfashionable Premier League clubs (Crystal Palace and Bournemouth, respectively) and Bruce recently quit as manager of Hull.

Glenn Hoddle, England coach from 1996-99, is also on the bookies’ list and a popular call with ex-professionals even though he hasn’t coached in a decade.

So Southgate, who has been given the reins for England’s next four matches – against Malta, Slovenia, Scotland and Spain – can stake a claim for the role on a full-time basis should he impress as a caretaker coach.

Except this was the same man who said as recently as Sept. 5 that he needed more experience to be England manager, having coached only one club (Middlesbrough, from 2006-09) and been in charge of the England under-21 side since 2013. Southgate pulled out of the race to succeed Roy Hodgson after the European Championship for this very reason, with the job going to Allardyce.

“I’m pretty clear on what I’m comfortable with,” Southgate said then, “but also I know to take that role wasn’t something I think I’ve got the experience for.

[ MORE: Why is Walcott on fire? | Wenger on MiB pod ]

“I think it’s one of the ultimate jobs and you want every skill set possible when you go into it. I think with England, there are one or two other things that I would want to have had experience of before I took that role, to be going into it from a real position of strength. Maybe that happens in the future, maybe it doesn’t?”

Less than a month later, he’s been thrust into what some term “The Impossible Job.”

Clean-cut, well-spoken and with no baggage, the 46-year-old Southgate fits the bill for the FA in terms of image. He would be the last person likely to get caught up in the kind of newspaper sting that led to Allardyce losing his job on Tuesday. He also knows the FA and what the national body wants and expects, having been an employee for three years.

“Gareth Southgate will do a good job,” FA chairman Greg Clarke said. “He knows the people, he knows the team, he knows the setup at St. George’s Park. He’ll take over pretty seamlessly.”

Best known for missing a crucial penalty in England’s shootout loss to Germany in the Euro 1996 semifinals, Southgate was fired after three years at Middlesbrough following its relegation from the Premier League. He has repaired his coaching reputation with England’s under-21s and led the team to a first title in 22 years at the Toulon tournament this year.

[ MORE: Wenger excited at Arsenal’s chances ]

Bruce is the second-favorite with bookmakers, behind Southgate, and has to be a big contender considering he was interviewed by the FA for the job eventually given to Allardyce. The 38-year-old Howe, who guided unfancied Bournemouth into the Premier League and kept it there, is widely regarded as a future England coach but now may be too soon for him.

The problem for English coaches is they are rarely given the chance to prove themselves at the leading Premier League clubs, who prefer foreign managers. The FA has tried to address the lack of top English coaches by building the sprawling National Football Centre in central England in 2012 and using that as a base from where talented young coaches can be brought through. That will take time, though.

For now, the FA has given itself some breathing space and will look to have a new man in place by England’s World Cup qualifier against Lithuania in March.

“It wasn’t the plan we had,” Clarke said, “but we’ve now got to make the new plan work.”

MLS Snapshots: Montreal, DC strengthen playoff bids; TFC draws Orlando (video)

Montreal Impact midfielder Ignacio Piatti, center, is congratulated by teammate Matteo Mancosu (21) following a goal against the San Jose Earthquakes during the first half of a soccer game, Wednesday, Sept. 28, 2016 in Montreal. (Paul Chiasson/The Canadian Press via AP)
Paul Chiasson/The Canadian Press via AP
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For most of Wednesday’s trio of Major League Soccer matches we had a paucity of goals, Montreal’s potent attack the only thing assuring it wasn’t zero.

[ MORE: Tata chooses Atlanta United ]

But the final half hours in two of our three matches proved fruitful for the box scores.

Montreal Impact 3-1 San Jose Earthquakes

With Didier Drogba resting, the Impact still managed to strengthen their playoff plans while crushing San Jose’s hopes for the second season. Dominic Odoro buried a rebound early before MVP hopeful Ignacio Piatti made it 2-0 before halftime. Piatti later helped Johan Venegas put the game away late.

Chris Wondolowski scored his 11th goal of the season to pull San Jose within a goal with just under a half-hour to play, his 120th in MLS has him 25 behind Landon Donovan of the LA Galaxy for the all-time record.

The loss leaves San Jose seven points shy of a playoff spot with four matches to play.

Toronto FC 0-0 Orlando City

There were chances, sure: Michael Bradley looped a gorgeous pass that Jonathan Osorio somehow hit over the net from inside the six, and Cyle Larin was denied by a diving Alex Bono at the other end.

Two yellow cards to Tosaint Rickets in a 14-minute span left TFC down a man for the final 20 minutes, but the Reds held on for a point at home. Orlando is now five points shy of the East’s final playoff spot, while Toronto used its game-in-hand to pull ahead of New York Red Bulls and New York City FC for the top spot in the East.

DC United 3-0 Columbus Crew

This one saw the chances evenly distributed but the ball mostly with the visitors. Fortunately for DC’s playoff hopes, Lloyd Sam’s third goal of the season opened up a 1-0 lead in the 71st minute off a slick feed from Luciano Acosta. Lamar Neagle had a classy finish to make it 2-0, then assisted Alvaro Saborio to end this game and Columbus’ playoff hopes.

Tata Martino on choosing Atlanta: Project “worth more than money”

EAST RUTHERFORD, NJ - JUNE 26: Gerardo Martino of Argentina clls out against Chile during the Copa America Centenario Championship match at MetLife Stadium on June 26, 2016 in East Rutherford, New Jersey. Chile defeated Argentina 4-2 in penalty kicks. (Photo by Mike Stobe/Getty Images)
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Paraguay.

Newell’s Old Boys.

Barcelona.

Argentina.

Atlanta United.

That’s the career path for new Atlanta boss Tata Martino, announced Wednesday as the first manager in United history.

[ MORE: Why is Walcott on fire? | Wenger on MiB pod ]

It’s a fascinating hire for the club and its league, Major League Soccer, as United prepares to debut in 2017.

And it’s also interesting on account of the coach. The 53-year-old Argentine remains in his prime, a three-time Copa America runner-up who was organizing Lionel Messi, Andres Iniesta, Xavi and company just three years ago.

Timothy Pratt filed a report on the hiring for the New York Times on Wednesday, one that speaks to Martino’s excitement at helping start a club from the ground up. The coach is excited to aid technical director and USMNT legend Carlos Bocanegra in guiding players from youth on up, similar to what Oscar Pareja has done at FC Dallas.

From NYTimes.com:

Martino underlined the importance of youth player development at his new club “based on how I became a player at Newell’s.” The club is known for grooming players, including a young Lionel Messi, who played for Martino with Barcelona and Argentina. “Working with the youth teams is fundamental for me, no matter where in the world I’m coaching,” he said.

“But the proposal they’re offering me — to install my style of play and build from the ground up — is worth more than money,” he said.

That’s the kinda hire that should be high-fived. Let’s see how it plays out.

Europa League: Mourinho says targeted Man Utd must win; Saints shorthanded

MANCHESTER, ENGLAND - SEPTEMBER 24:  Jose Mourinho, Manager of Manchester United makes his way to the tunnel after the final whistle  during the Premier League match between Manchester United and Leicester City at Old Trafford on September 24, 2016 in Manchester, England.  (Photo by Laurence Griffiths/Getty Images)
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Europa League goes into its second day of group play with the onus on the biggest club in the tournament to pick up a win.

Don’t believe us? Ask Manchester United boss Jose Mourinho.

“To be honest, I think we have to win,” Mourinho said at his pre-match press conference. “If we don’t win, I would say we’d have to win all the last four matches, which is difficult, so I think it is very important that we win this game.”

[ MORE: Wenger excited at Arsenal’s chances ]

United fell 1-0 at Feyenoord to open the group stage, and now hosts Ukrainian side Zorya Luhansk at 3:05 p.m. ET Thursday. He knows its the equivalent of a massive Cup match for the visitors.

“The Europa League is a competition Man United isn’t normally in, so when these teams have a giant like Man United in front of them, it’s a huge moment for them and they come to the game with incredible motivation.”

Zlatan Ibrahimovic will start for United, as there’s a chance that Anthony Martial will rejoin the side. Henrikh Mkhitaryan is out, and Wayne Rooney (back) and Luke Shaw (illness) may not play.

The other Premier League side in play is Southampton, as the Saints take a long flight to Israel for a 3:05 p.m. ET kickoff against Hapoel Be’er Sheva.

[ MORE: Why is Walcott on fire? | Wenger on MiB pod ]

Saints handled Sparta Prague at home, and now face the Camels, who went to Inter Milan and won. Southampton is without Charlie Austin, Jose Fonte, Ryan Bertrand, and Steven Davis.

Should be a very decent match from Turner Stadium in Be’er Sheva.

Elsewhere

all times ET

Mainz at Gabala — 11 a.m.
Young Boys at Astana — 11 a.m.
Osmanlispor at Zurich — 1 p.m.
Red Bull Salzburg at Schalke — 1 p.m.
PAOK at Liberec — 1 p.m.
Qarabag at Fiorentina — 1 p.m.
Villarreal at Steaua Bucuresti — 1 p.m.
Nice at Krasnodar — 1 p.m.
Standard Liege at Ajax — 1 p.m.
Braga at Shakhtar Donetsk — 1 p.m.
Panathinaikos at Celta Vigo — 1 p.m.
Inter Milan at Sparta Prague — 1 p.m.
Konyaspor at Gent — 1 p.m.
Sassuolo at Genk — 3:05 p.m.
Zorya at Manchester United — 3:05 p.m.
Anderlecht at Saint-Etienne — 3:05 p.m.
Apoel Nicosia at Olympiacos — 3:05 p.m.
Maccabi Tel-Aviv at Dundalk — 3:05 p.m.
Feyenoord at Fenerbahce — 3:05 p.m.
Rapid Wien at Athletic Bilbao — 3:05 p.m.
Viktoria Plzen at Austria Wien — 3:05 p.m.
AZ Alkmaar at Zenit Saint-Petersburg — 3:05 p.m.
Astra Giurgiu at AS Roma — 3:05 p.m.