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.

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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.

LIVE: Playoff final – Huddersfield, Reading fight for final PL spot

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The richest game in world soccer is here.

[ LIVE: Follow the action from Wembley ]

Huddersfield Town and Reading clash at Wembley Stadium in the Championship playoff final, one win away from the Premier League with the final promotion spot up for grabs after Newcastle United and Brighton & Hove Albion clinched automatic promotion.

Whoever wins this match will alter the path of their club for the foreseeable future.

The winner will not only receive a place in the PL but also a huge sum of $218 million for next season and if they stay up for just one season in the Premier League it is estimated to be worth $372 million.

Below is the team news…

Click on the link above to follow live updates from Wembley, while we will have analysis, reaction and more during and after the game.

VIDEO: Watch Francesco Totti’s emotional Roma farewell

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After a 25-year career at AS Roma, Francesco Totti was handed a fitting farewell on Sunday.

The hometown hero, now 40 years of age, called time on his incredible Roma career and looked overwhelmed.

[ MORE: Totti’s incredible career

Coming on for the 786th and final appearance of his stunning career, the all-time leading scorer for Roma (307 goals in all competitions) helped his team secured a dramatic last-gasp 3-2 win over Genoa to seal second place in the Serie A table and an automatic spot in the UEFA Champions League next season.

Totti spurned big money moves to Real Madrid and Barcelona where he could have won the biggest trophies and individual titles in the game to stay at Roma. He won just one Scudetto with Roma but famously said that was worth 10 league titles had he played for another team.

[ MORE: Serie A final day roundup ]

Following the game it was all about Totti as his teammates and manager broke down in tears, and so too did Totti as he went on a lap of honor with his wife and children at a sold-out Stadio Olimpico.

Rome’s favorite son said goodbye and there wasn’t a dry eye in the house.

Watch the emotional farewell in the videos below.

I know. I have something in my eye too…


Man City close in on $44.6 million goalkeeper Ederson

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Manchester City are about to break the record transfer fee for a goalkeeper.

To anybody who watched them last season, this is no surprise.

[ VIDEO: Premier League highlights ] 

Benfica stopper Ederson Moraes is reportedly flying in to Manchester on Monday to seal a $44.6 million move from the Portuguese giants.

The 23-year-old Brazilian won the Portuguese cup with Benfica at the weekend (to add to the 2016-17 Portuguese title, a fourth-straight for the club) and then revealed it was probably his final game for the Lisbon club.

So, City’s search for a new goalkeeper appears to be over.

Pep Guardiola released Willy Caballero last week and with Claudio Bravo struggling massively in his first season in England, plus Joe Hart loaned out to Torino in Italy with his future at Man City seemingly non existent, it seems as though Ederson is now the main man.

City spent over $55 million on Monaco’s attacking midfielder Bernardo Silva last Friday and it appears Pep is trying to his business done much earlier this summer in order to get his squad together as quickly as possible. After finishing in third place in the PL, his first season in England, and crashing out of the UEFA Champions League at the Round of 16 stage, Guardiola knows he must hit the ground running in 2017-18.

The record fee for a goalkeeper is the $41.8 million Juventus paid Parma for Gianluigi Buffon way back in 2001, but now it appears City are spending big to try and eradicate a problem area over the past 12 months.

Bravo just didn’t adapt to the high-pressing in the Premier League as City tried to play out from the back with Caballero replacing the Chilean goalkeeper in goal for much of the second half of the campaign.

With defensive issues the main reason Pep’s men didn’t challenge for the title, or make a deep run in the UCL, it must be comforting for City’s fans to see something being done about it, especially after signing yet another attacking midfielder last week…

Next up: another central defender, a left back and a right back.

Chivas Guadalajara wins 12th Liga MX title

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A nail-biting finish saw Chivas Guadalajara lift the 2016/17 Liga MX title, beating Apertura champions Tigres to earn the club’s 12th Liga MX title.

The title makes Guadalajara the joint-most successful club in Mexican top flight history, even with Club America on titles.

With the aggregate score at 2-2 coming into the second leg at Chivas Stadium, the home side took the lead on an 18th minute expert finish by former Tigres youth product Alan Pulido. Oswaldo Alanís delivered a brilliant deep, looping ball to the far post, and under one-on-one pressure with a defender, Pulido struck it first-time and buried the ball into the far corner.

The game waited until midway through the second half for the next strike, as the eventual winner would fall to Jose Vazquez. The 29-year-old charged down a bounding ball that Tigres failed to clear, and his effort on net took a sizeable deflection off the midsection of a visiting defender, leaving the ball to trickle in uncontested.

Despite a 4-2 aggregate lead, it was by no means comfortable down the stretch for Chivas. Tigres pulled one back in the 88th minute on a fabulous strike by Ismael Sosa from just outside the top of the box. The visitors pressed for a stunning late equalizer, but it wasn’t to be.

The title is sweet for Chivas, who has endured a decade of struggles since winning its last championship, even coming close to relegation at times. In addition, the starting lineup for the second leg was fully domestic from top to bottom, with all 11 players from Mexico. On that same note, Pulido outdueled expensive Tigres striker Andre-Pierre Gignac, putting in on of the most impressive shifts of the match.