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.

Hoffenheim reaches Champions League qualifiers for 1st time

AP Photo/Michael Probst
Leave a comment

BERLIN (AP) The youngest coach in the Bundesliga, 29-year-old Julian Nagelsmann, has steered Hoffenheim to a place in the Champions League qualifiers in the club’s best ever season.

Hoffenheim could even secure its first appearance in the Champions League group stage if it holds on to third place – where it now stands after Benjamin Huebner scored in the last minute to snatch a 1-0 home win over Eintracht Frankfurt on Sunday. It has three more matches to play this season.

Huebner’s late goal, a powerful header to Sebastian Rudy’s corner, moved the side one point above Borussia Dortmund, which was held to a scoreless draw at home by Cologne on Saturday.

The goal was scored by the son of Frankfurt sporting director Bruno Huebner.

“A lucky win,” acknowledged Hoffenheim backer Dietmar Hopp, the software billionaire whose finances helped his hometown club progress from minor leagues to the Bundesliga.

A co-founder of the SAP software giant, Hopp became the first private owner of a Bundesliga side when he took a majority stake in Hoffenheim in 2015. By then he had already spent an estimated 350 million euros on the team.

However, Hoffenheim’s best appointment to date appears to be that of Nagelsmann, who took over in February 2016 after Huub Stevens stepped down for health reasons.

Then 28, Nagelsmann hadn’t even earned his coaching credentials from the German football federation (DFB). But he saved the side from relegation and Hoffenheim is enjoying its best ever season this year.

The win over Frankfurt extended its unbeaten run at home to 16 games and ensured it beat its previous best-mark of 55 points from the 2008-09 season.

As a player, Nagelsmann lined up for Bavarian sides Augsburg and 1860 Munich before turning his attention to coaching. He spent almost a decade coaching the youth sides of 1860 Munich and then Hoffenheim, for which he was also assistant coach in 2012-13.

Earlier this year, Nagelsmann was named the German football federation’s coach of the year for 2016.

Dortmund hosts Hoffenheim next weekend for a game that is likely to decide which side goes into the qualifiers and which secures automatic qualification for the Champions League.

AUGSBURG 4, HAMBURGER SV 0

Hamburger SV slipped closer to its first ever relegation in a humiliating defeat at fellow struggler Augsburg.

Hamburg, the last founding member of the league to have played every season since its formation in 1963, was left in the relegation playoff place with three games remaining.

“We’re all affected by the performance we showed today,” Hamburg coach Markus Gisdol said. “We were hoping for something different. But we’ve got over other setbacks before and have to deliver the best in the next game.”

Hamburg goalkeeper Tom Mickel and the left post denied Augsburg early on before Halil Altintop fired the home side ahead, midway through the first half.

Altintop scored another before the break, set up by Philipp Max, to give Augsburg some breathing space.

Michael Gregoritsch reacted with a brutal challenge on Dominik Kohr, for which the Hamburg midfielder was fortunate to escape with a yellow card.

Max sealed the result on a counterattack before setting up Raul Bobadilla to complete the scoring late on.

“We could even have scored more goals,” Augsburg coach Manuel Baum said. “But more than three points wouldn’t have been possible.”

Victory lifted Augsburg out of the relegation playoff place and two points above Hamburg, Wolfsburg and Mainz, all level on 33 points. Hamburg, which has conceded a league-worst 59 goals in 31 games, has an inferior goal difference to the other two.

Ingolstadt and Darmstadt occupied the automatic relegation spots. Ingolstadt was four points behind Hamburg, while Darmstadt was all but doomed, nine points behind.

Balotelli, Nice may have spoiled PSG’s title chances

Leave a comment

Monaco took care of business at the top of Ligue 1 on Saturday and now the Champions League semifinalists could be closing in on France’s crown.

[ MORE: Spurs revel in ruling North London, but want more ]

Paris Saint-Germain slipped up on Sunday with a 3-1 loss against third-place Nice, and it could spell the end for the Parisians’ hopes of winning Ligue 1 in 2016/17.

Mario Balotelli sprung Nice in front after 26 minutes with a curling left-footed effort from outside the box, before Ricardo Pereira doubled the advantage for the hosts just three minutes into the second stanza with a lovely curler of his own.

PSG managed to pull a goal back in the 64th minute as Marquinhos gave the visitors a glimmer of hope to keep their title hopes alive.

However, the final minutes of the match took a drastic turn for the worse for PSG as Thiago Motta and Angel di Maria were both shown red cards for violent tackles on Nice players.

Nice also found a third finish after PSG was dwindled down to nine men when Anastasios Donis headed home a lofted cross from the left wing.

With three matches remaining for PSG, Unai Emery’s side sits three points behind league leaders Monaco, who also have a match in hand. PSG finishes up their Ligue 1 account with matches against Bastia, St Etienne and Caen.

Video: Camilo Sanvezzo scores wonder goal for Queretaro

Twitter/@InvictosSomos
Leave a comment

Camilo Sanvezzo scored two goals on Sunday for Queretaro but many won’t even remember the score of the game after his brilliant first effort.

The Queretaro forward scored the first of two finishes in the 66th minute after winning the ball in his own half, carrying it into the Toluca end and unleashing a deadly shot from just inside midfield.

Sanvezzo eventually scored his side’s second goal in the dying minutes of the match, and his 88th minute finish proved to be the winner for Queretaro, who currently sit 13th in Liga MX.

The 28-year-old should be familiar to MLS fans after Sanvezzo’s time with the Vancouver Whitecaps from 2011 to 2013. The veteran scored 39 goals in 92 matches with the Canadian side.

MLS Snapshot: Atlanta United 1-3 D.C. United (video)

Twitter/@ATLUTD
Leave a comment

The game in 100 words (or less): Atlanta has been one of the most exciting teams in MLS over the opening two months of the season, but with a bit of luck and grit D.C. United spoiled the newcomers’ fun on Sunday afternoon. It was all the home side early on in the match, which was spearheaded by Kenwyne Jones‘ emphatic header, but D.C. responded well with some good pressure of their own. The win for D.C. moves Ben Olsen’s club into eighth place in the Eastern Conference. Meanwhile, Atlanta still holds the sixth and final playoff position through eight matches as Gerardo Martino’s side sits on 11 points.

[ MORE: MLS roundup from Saturday’s action ]

Three moments that mattered

9′ — Hosts apply pressure and hit D.C. where it hurts — This is exactly why Atlanta brought in Kenwyne Jones. Big body and deadly heading ability. Can’t stop that.

25′ — D.C. unexpectedly pulls level — It certainly wasn’t how Lamar Neagle drew it up but he and D.C. somehow equalized before the half hour mark after some sloppy Atlanta defending.

36′ — Acosta runs wild — Atlanta will probably want to look back on this moment and make sure they do a better job covering the diminutive attacker next time.

[ FOLLOW: All of PST’s MLS coverageStandings | Stats | Schedule ]

Men of the match: Luciano Acosta

Goalscorers: Kenwyne Jones (9′), Michael Parkhurst — OG (25′), Luciano Acosta (36′), Sebastian Le Toux (55′)