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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.

Juventus win 15th straight to take Serie A lead from Napoli

Juventus' Simone Zaza, second from right, celebrates with is teammates after scoring during a Serie A soccer match between Juventus and Napoli at the Juventus stadium, in Turin, Italy, Saturday, Feb. 13, 2016. (AP Photo/Massimo Pinca)
AP Photo/Massimo Pinca
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(AP) — Substitute Simone Zaza scored two minutes from time and Juventus beat visiting Napoli 1-0 on Saturday to take the Serie A lead from the southern club.

[ MORE: Napoli fans support racially abused Koulibaly ]

Seeking its fifth consecutive title, Juventus moved one point ahead of Napoli with 13 rounds remaining in the Italian league.

Near the end of a match in Turin that had been characterized by few chances for either side, Zaza’s goal came with a long, curving shot that deflected slightly off defender Raul Albiol.

[ MORE: Chelsea’s next manager? Juve GM tells Allegri to “think twice” ]

It was Juventus’ 15th straight win, moving the Bianconeri within two victories of the Serie A record established by Inter Milan in 2006-07.

Earlier, Daniel Ciofani scored twice as promoted Frosinone beat Empoli 2-1 for its first away win in the top division. Also, Chievo Verona and Sassuolo drew 1-1.

Bundesliga wrap: Leverkusen win without Chicharito, drop Hertha to 4th

Leverkusen's Omer Toprak, right, celebrates his side's equalizing goal during a German Bundesliga soccer match between SV Darmstadt 98 and Bayer Leverkusen in Darmstadt, Germany, Saturday, Feb. 13, 2016. (AP Photo/Michael Probst)
AP Photo/Michael Probst
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A roundup of all of Saturday’s action in Germany’s top flight…

[ FOLLOW: PST’s Bundesliga coverage ]

Borussia Dortmund 1-0 Hannover

Bayern Munich’s lead has been cut to five points (for the time being – they play on Sunday) after Borussia Dortmund (48 points) returned to winning ways via Henrikh Mkhitaryan’s game-winning goal in the 57th minute (below video).

Darmstadt 1-2 Bayer Leverkusen

No Javier “Chicharito” Hernandez, no problem for Bayer Leverkusen, who went third in the Bundesliga with a 2-1 away victory over 12th-place Darmstadt. After going down a goal in the 28th minute, the game swung on a pair of goals 15 minutes apart just after the hour mark. Aytac Sulu put the ball into his own net for Leverkusen’s equalizer on 62 minutes, and Julian Brandt scored the winner in the 77th minute. Now on 35 points with a +9 goal differential, Leverkusen have leapfrogged Hertha Berlin for the third and final automatic qualification spot into the UEFA Champions League.

Stuttgart 2-0 Hertha Berlin

Hertha are now four league games without a win (three draws) after falling 2-0 away to Stuttgart. Serey Die and Filip Kostic were the goalscorers on Saturday, as U.S. national team defender John Brooks completed his 12th straight 90-minute shift (all competitions). With 35 points and a +6 goal differential, Hertha now sit just two points ahead of Schalke and Mainz in the race for the Bundesliga’s fourth and final Champions League place.

Elsewhere in the Bundesliga

Wolfsburg 2-0 Ingolstadt
Werder Bremen 1-1 Hoffenheim
Koln 3-1 Eintracht Frankfurt

Sunday’s Bundesliga schedule

Hamburg vs. Borussia Monchengladbach (9:30 a.m. ET)
Augsburg vs. Bayern Munich (11:30 a.m. ET)

Team GP W D L GF GA GD Home Away PTS
Bayern Munich 20 17 2 1 50 9 41 10-0-0 7-2-1 53
Borussia Dortmund 21 15 3 3 53 24 29 9-1-0 6-2-3 48
Bayer Leverkusen 21 10 5 6 31 22 9 5-3-2 5-2-4 35
Hertha BSC Berlin 21 10 5 6 29 23 6 6-3-1 4-2-5 35
FC Schalke 04 21 10 3 8 30 28 2 6-2-3 4-1-5 33
FSV Mainz 05 21 10 3 8 27 25 2 6-1-4 4-2-4 33
Mönchengladbach 20 10 2 8 40 35 5 7-1-3 3-1-5 32
VfL Wolfsburg 21 8 6 7 31 28 3 7-3-1 1-3-6 30
1. FC Köln 21 7 8 6 24 27 -3 4-4-3 3-4-3 29
VfB Stuttgart 21 8 3 10 33 41 -8 5-1-5 3-2-5 27
FC Ingolstadt 04 21 7 5 9 14 23 -9 4-2-4 3-3-5 26
Darmstadt 21 6 6 9 22 31 -9 1-4-6 5-2-3 24
Hamburger SV 20 6 5 9 22 28 -6 2-3-5 4-2-4 23
FC Augsburg 20 5 6 9 22 28 -6 2-3-5 3-3-4 21
Eintracht Frankfurt 21 5 6 10 27 37 -10 3-3-4 2-3-6 21
Werder Bremen 21 5 5 11 25 42 -17 1-3-6 4-2-5 20
1899 Hoffenheim 21 2 9 10 19 31 -12 1-5-4 1-4-6 15
Hannover 96 21 4 2 15 19 36 -17 2-0-8 2-2-7 14

USWNT tops Mexico, advances to Olympic qualifying semis on late Lloyd PK

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The U.S. women’s national team is one step closer to qualifying for the 2016 Olympics in after the Lady Yanks, on the back of Carli Lloyd’s 79th minute, knocked off their North American rivals, Mexico, in a narrow, physical affair at Toyota Stadium in Frisco, Tex., on Saturday.

[ FOLLOW: All of PST’s USWNT coverage ]

With only bottom-of-the-group Puerto Rico (0 points, -15 goal differential through two games) still to face, the USWNT are through to the semifinal round, at which point they’ll be one more win away from qualifying for this summer’s Olympic games in Rio de Janeiro.

The first half of Saturday’s clash was much different from what either side saw in their opening game — USWNT beat Costa Rica, 5-0, while Mexico routed Puerto Rick, 6-0 — as both sides engaged in a rough-and-tumble affair, racked up plenty of fouls and failed to create much of anything in terms of quality scoring chances.

The USWNT’s best chance early in the second half came in the 53rd minute, when Christen Press rifled a right-footed effort toward the far post from 15 yards out, but found nothing but woodwork before the ball caromed back into the field of play.

[ MORE: USWNT routs Costa Rica in Olympic qualifying opener ]

Alex Morgan very nearly opened the scoring in the 67th minute. Becky Sauerbrunn’s long throw was flicked on by Lindsey Horan’s header inside the penalty area, and eventually made its way to Morgan near the top of the six-yard box, from where her volleyed effort was sent inches over the crossbar.

With 77 minutes on the clock, Horan followed suit with a shot of her own off the post. From 20 yards out, her right-footed effort had beaten the goalkeeper, only to hit the same far post and bounce across the face of goal, where not a single American player was waiting to tap home the rebound.

All of Mexico’s dogged defensive work was undone in the 79th minute, though, as the USWNT was awarded a controversial penalty for handball. Lloyd’s initial effort from the penalty spot was saved, but the reigning World Player of the Year was first to the rebound and slotted the ball into an empty net (below video).

PL Sunday preview: Arsenal-Leicester, Man City-Spurs in top-four defining day

Arsenal's Alexis Sanchez, center, scores their third goal during their English Premier League soccer match against Leicester City at the King Power Stadium, Leicester, England, Saturday, Sept. 26, 2015. (Paul Harding/PA via AP)     UNITED KINGDOM OUT       -     NO SALES      -      NO ARCHIVES
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The Premier League top-four’s defining day is upon us, as 3rd-in-the-league Arsenal hosts 1st-in-the-league Leicester City, and 4th-in-the-league Manchester City hosts 2nd-in-the-league Tottenham Hotspur on Sunday.

[ FOLLOW: All of PST’s PL coverage ]

It’s also another important day in Aston Villa’s bid to avoid relegation, as they host (very, very faint) UEFA Champions League hopefuls Liverpool.

Arsenal vs. Leicester City — 7 a.m. ET, on NBCSN and Live Extra

No side in the Premier League has won more points away from home this season (28) than Leicester, which will no doubt have Arsenal fans feeling terrified for the whole of Saturday evening as Sunday morning looms.

When these sides met for the first time this season, back on Sept. 26, Arsenal walked out of the King Power Stadium with a resounding 5-2 victory, with many thanks to an Alexis Sanchez hat trick. Since that early Autumn day, Leicester have lost just once in the league (two PL losses all season), to Liverpool on Boxing Day. Jamie Vardy, who failed to score a single goal in six league games from Dec. 19 to Jan. 16, has scored three in his last three games (Leicester have beaten Stoke City, Liverpool and Man City by a combined score of 8-1 during that period).

On the injury front, the Gunners are mostly healthy, with Santi Cazorla (knee) the only first-teamer of real consequence due to miss Sunday’s game. The same goes for Leicester, who have a totally clean bill of health in terms of players who have featured this season.

[ MORE: Saturday’s PL roundup — Sunderland shock Man United, Chelsea roll ]

Aston Villa vs. Liverpool — 9:05 a.m. ET, on NBCSN and Live Extra

Bottom-of-the-table Villa need wins in the very worst of ways — with 13 games left in their season, Rudi Garde’s side is currently eight points from safety; the magical 40-point marks remains a whopping 24 points ahead of them. Liverpool currently sit 12 points behind Man City for the fourth and final Champions League place, thus Sunday’s trip to Villa Park is a must-win for Jurgen Klopp‘s Reds. When these teams met back in late September, Daniel Sturridge was the hero in a 3-2 victory at Anfield.

On the injury front, Villa will be without Jordan Ayew (suspension), Jack Grealish (ankle) and Adama Troare (foot), while Carlos Sanchez (hamstring) and Rudy Gestede (hamstring). Liverpool’s latest injury report, meanwhile, is an utter disaster that weakens every unit of their squad, though Sturridge is (finally) back in action.

[ MORE: Suarez — I’d only play for Liverpool in the Premier League ]

Manchester City vs. Tottenham Hotspur — 11:15 a.m. ET, on NBCSN and Live Extra

A single point separates the PL’s second- and fourth-place teams, who are set to face off at the Etihad Stadium on Sunday. Tottenham, who are two or three years ahead of Mauricio Pochettino‘s perceived timetable turning Spurs into PL contenders, are very much in the title race. When they welcomed Man City to White Hart Lane in September, the final score was 4-1 to Pochettino’s side, and the warning had been heard loud and clear. Harry Kane has scored four goals in his last four PL games.

City, somehow, still haven’t won back-to-back league games since the middle of October, and that’ll not be changing on Sunday, given their 3-1 defeat to Leicester last weekend. City’s talisman, Sergio Aguero, has remained healthy of late and displayed the kind of form that makes him capable of winning any game on his own on a given day (7 goals in last 6 PL appearances). With Vincent Kompany expected to make his return from a calf injury that has sidelined the Sky Blues captain since Boxing Day, now is the time for City’s defense to begin to match Aguero’s attacking brilliance if they are to push on and send Manuel Pellegrini out with another PL title.

On the injury front, Man City will once again be without Kevin De Bruyne (knee), as well as Eliaquim Mangala (hamstring), Jesus Navas (hamstring) and perhaps Wilfried Bony (calf). For Spurs, only Jan Vertonghen (knee) is expected to be unavailable.