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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.

Klopp played three positions in Liverpool staff team’s draw with Stanford

Jurgen Klopp, Liverpool FC (Photo credit: @StanfordMSoccer)
Photo credit: @StanfordMSoccer
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From the Endearing Jurgen Klopp Tales file, the Liverpool manager reportedly starred in defense, midfield and attack for a squad full of Reds coaches against Stanford on Sunday.

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Liverpool, who have based themselves on the sunny, warm Stanford University campus as part of their preparations for the 2016-17 Premier League, took on the collegiate side and played the youngsters to a 1-1 draw.

Klopp failed to get his name on the scoresheet, though the former Mainz striker had one golden chance turned away by Stanford’s goalkeeper. The same couldn’t be said for physiotherapist Ruben Pons, who scored from beyond the halfway line on a mishit long ball over the top.

With all the goodwill Klopp has banked with Reds fans in his first nine months at the club, he’s now only a PL title away from securing his place as an eternal Liverpool legend.

Liverpool will take on Chelsea in each side’s first International Champions Cup fixture Wednesday night (11 p.m. ET) in Pasadena, Calif.

Former Fergie assistant Phelan wants Hull job — “I want to be a manager”

SCUNTHORPE, ENGLAND - JULY 23:  Hull City interim manager Mike Phelan prior to kick off in the pre-season friendly between Scunthorpe United and Hull City at Glanford Park on July 23, 2016 in Scunthorpe, England.  (Photo by Daniel Smith/Getty Images)
Photo by Daniel Smith/Getty Images
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Following Steve Bruce’s sudden and unexpected resignation this week, Hull City find themselves without a first-team manager 20 days before the 2016-17 Premier League opener, which will pit the PL newcomers (again) against the reigning PL champions (not again) Leicester City on Aug. 13.

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The man presently in charge of the club, Mike Phelan, who served as Sir Alex Ferguson‘s no. 2 for a number of years at Manchester United, has essentially no first-team managerial experience, but he’s eager to cut his teeth and wants the job anyway — quotes from the Hull Daily Mail:

“I want to be a manager. I don’t really see why I shouldn’t want to be a manager. Time will tell. That decision doesn’t sometimes come down to you.

“I’ve had a small chat and I was asked if I would carry on being in charge for now. We have games, we have preparations, we’ve still got three weeks to go.

“My job is no different to what it has been except now I’m stood on the touchline in games doing my bit. We just have to do our job, there’s nothing else we can do until the powers that be make their decisions.”

Here’s why it’s (obviously) crazy for the club to delay a final decision any longer than absolutely necessary: with every passing day, important preparations for a PL season, a campaign in which the Tigers will almost certainly be fighting for their top-division status, are being undertaken by an interim boss who, based upon the daily whims of an outgoing owner, may or may not be the man to lead Hull into that 38-game battle.

Phelan previously served as interim manager for Norwich City in 2015, for a period totaling four days.

Int’l Champions Cup: Aurier scores twice as PSG throttle Inter Milan

Paris Saint-Germain's Serge Aurier, right, gets a shot past Inter Milan goalkeeper Samir Handanovic, left, in the first half of the International Champions Cup soccer match at Autzen Stadium in Eugene, Ore., Sunday, July 24, 2016. (Andy Nelson/The Register-Guard via AP)
Andy Nelson/The Register-Guard via AP
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EUGENE, Ore. (AP) Serge Aurier scored twice and Paris Saint-Germain beat Inter Milan 3-1 on Sunday at the University of Oregon’s Autzen Stadium.

Layvin Kurzawa also scored for PSG on a free kick in the 61st minute in the International Champions Cup match. Stevan Jovetic scored for Inter Milan on a penalty kick in stoppage time following the first half.

Autzen Stadium, the home football field of the Oregon Ducks, hosted the match, part of the International Champions Cup. Real grass was laid down on the artificial turf field, obscuring the yellow `O’ at midfield.

The International Champions Cup is an exhibition tournament involving 17 teams playing on four different continents. It serves a tuneup for the regular season.

Inter Milan was coming off a 2-1 victory over Real Salt Lake earlier in the week in Utah. Striker Mauro Icardi played in that match, and was given the day off against PSG.

Paris Saint-Germain, which beat West Bromwich Albion 2-1 its last time out on July 14 in Austria, is embarking on its first season under Unai Emery, who took over for Laurnet Blanc. In addition to the new manager, PSG will also need to adjust to the departure of enigmatic forward Zlatan Ibrahimovic, who signed with Manchester United earlier this month.

Ibrahimovic had 38 goals in 31 French league games last season, helping PSG to a fourth successive title. On Sunday midfielder Javier Pastore wore No. 10.

Angel Di Maria, Edinson Cavani and Thomas Meunier entered as subs for Paris Saint-Germain in the second half.

Di Maria had just returned to his club team earlier in the week after taking some time off following the Copa America tournament. He played for his native Argentina in the final, which Chile won on penalty kicks.

David Luiz apparently did not make the trip to Eugene from Los Angeles, where PSG was training.

Aurier, who played in the 2014 World Cup for his native Ivory Coast, left-footed the rebound of a free kick off goalkeeper Samir Handanovic into the bottom left corner.

Inter Milan evened it on Jovetic’s penalty kick into the top right corner in extra time following the first half. The penalty was awarded when Lucas Moura was called for a handball.

Aurier had a good chance in the 57th minute but his shot hit the crossbar. A few minutes later, Kurzawa struck a perfectly placed free kick that Handanovic couldn’t reach that put PSG in front.

Aurier’s second goal was a header off a cross from Alec Georgen in the 87th minute.

Is MLS MVP a three-horse race at the All-Star “break”?

Toronto FC's Sebastian Giovinco laughs after being named Major League Soccer's 2015 Most Valuable Player in Toronto, Wednesday, Dec.  2, 2015. (Nathan Denette/The Canadian Press via AP)
Nathan Denette/The Canadian Press via AP
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With the 2016 MLS All-Star Game set to be played Thursday night (versus Arsenal, at Avaya Stadium in San Jose, Calif.), it got me thinking about the race for this year’s Most Valuable Player award. (If MLS is going to continue holding the All-Star Game every year — and they are — it should include an actual break, as is the case in all other America sports.)

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While the field is a small one at this point of the campaign, it’s also much closer than it was last year, when Sebastian Giovinco took home the honor in an absolute landslide of a vote.

Sebastian Giovinco, Toronto FC

The reigning MVP is on pace for something of a come-down in his second season in MLS, but when you put up 22 goals and 16 assists in your debut campaign, can you really expect to replicate that kind of production from one year to the next? Still, 11 goals (on the most shots in the league – 124) and 7 assists through 20 games (Giovinco has played in 19) has him on pace for 18 goals and 12 assists. Of course, when you consider he snapped a skid of eight games without a goal with a hat trick Saturday night, and that he’s unlikely to endure such a slump through the final 14 games, 18 and 12 should be considered the proverbial floor.

TFC have scored just 25 goals this season, and Giovinco has scored or assisted 18 of them (72 percent).

As for TFC’s present standing and how that impacts Giovinco’s MVP candidacy, fifth place through 20 games is a disappointment considering this was to be “the year” where they were less of a collection of talent, and more a functional team. Of course, injuries (and national team call-ups) have robbed the Reds of Michael Bradley, Jozy Altidore and Will Johnson for lengthy periods already. That TFC find themselves presently a playoff team, and a measly six points back of the Eastern Conference’s top spot with two games in hand, should benefit Giovinco’s case more than hurt it.

David Villa, New York City FC

This one’s pretty simple: NYCFC weren’t supposed to be anywhere near the top spot of the East this season, yet that’s where they find themselves at the break, and Villa has spearheaded their unlikely run by scoring 13 goals (most in MLS – on 117 shots – 46 more than the next-closest player) and one assist through 22 games (Villa has played in 21). The question is this, though: will Patrick Vieira’s side still be there come the end of the season? So much of Villa’s claim to MVP is that he’s been the best player on one of the best (and certainly most surprising) teams in MLS this year.

If they’re to fall back into the pack (they’re just two points clear of the New York Red Bulls following Sunday’s 4-1 derby disaster, and only four points from fourth), Villa will quickly fall from MVP candidate to “the best best player on a subpar team.”

New York City FC forward David Villa, left, and New York City FC defender Chris Wingert celebrate Villa's early goal during the first half of the match between New York City FC and Toronto FC, Sunday, July 12, 2015, at Yankee Stadium in New York. (AP Photo/Kevin Hagen)
(AP Photo/Kevin Hagen)

Ignacio Piatti, Montreal Impact

The Impact have, for my money, the most complete roster in the Eastern Conference. Didier Drogba is arguably the most dominant goal-scoring force MLS has ever seen (8 goals in 12 appearances this season; 11 in 11 last year), and the depth in midfield and defense is unparalleled, yet Piatti has been the unrivaled star through the first 20 games of the season (he has played in 18). His 12 goals and 5 assists are rivaled only by Giovinco’s numbers, and he’s been a far more consistent contributor than the Italian (never more than three games without a goal, while playing as a non-forward, unlike Giovinco).

The knock on Piatti has always been his inability to stay healthy and approach a pace of 30 appearances in a single season. Finally consistently healthy in 2016, he’s taken his short-term production and replicated that same kind of output over 90 percent of his team’s games this season. If he can reach 30 games played this year, Piatti has the best chance of stopping Giovinco from becoming the first back-to-back MVP winner in league history.

Montreal Impact's Ignacio Piatti, left, of Argentina, scores a goal as Vancouver Whitecaps' Kendall Waston, of Costa Rica, defends during first half MLS soccer action, in Vancouver, British Columbia, on Sunday, March 6, 2016. (Darryl Dyck/The Canadian Press via AP)
(Darryl Dyck/The Canadian Press via AP)

On the fringe, with a chance to catch the leaders: Sacha Kljestan (New York Red Bulls – 5 goals, 12 assists), Diego Valeri (Portland Timbers – 9 goals, 5 assists)