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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.

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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.

Bayern’s Vidal says “ugly” Atletico not deserved UCL finalists

MADRID, SPAIN - APRIL 27: Juanfran of Atletico Madrid and Arturo Vidal of Bayern Munich argue during the UEFA Champions League semi final first leg match between Club Atletico de Madrid and FC Bayern Muenchen at Vincente Calderon on April 27, 2016 in Madrid, Spain.  (Photo by Gonzalo Arroyo Moreno/Getty Images)
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Bayern Munich midfielder Arturo Vidal has declared “ugly” Atletico Madrid unworthy finalists in the UEFA Champions League.

Bayern was eliminated in the Champions League semifinal by Atleti on Tuesday, with Diego Simeone’s Spanish side advancing on away goals.

[ FOLLOW: All of PST’s UCL coverage ]

However, Vidal believed Bayern were the better team in the second leg, saying Atletico played “ugly football” to get through.

Today ugly football – Atletico – played against the best football in the world. The only time they saw the ball was for the goal.

They are going to be dreaming about us right up to the final. They did not have the ball, they took on the best team in the world, they took their chances and got to the final.

The best does not always win in football, like today. They are not deserved finalists.

Bayern Munich controlled more than 70-percent of possession and had 33 shots compared to Atletico’s nine, but those stats mean little as Antoine Griezmann’s away goal was enough to send Atleti to the final.

[ MORE: Former England striker Joe Cole headed to NASL’s Tampa Bay Rowdies ]

Atletico may not play the most attractive football, but after eliminating Barcelona and Bayern Munich in consecutive legs, it’s hard to argue anyone deserves this more than Simeone’s men.

Europa League preview: Liverpool, Shakhtar look to overcome Spanish foes

VILLARREAL, SPAIN - APRIL 28:  Cedric Bakambu of Villarreal is watched by the Liverpool defence during the UEFA Europa League semi final first leg match between Villarreal CF and Liverpool at Estadio El Madrigal on April 28, 2016 in Villarreal, Spain.  (Photo by David Ramos/Getty Images)
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The second leg of the Europa League semifinals kick off tomorrow, with two La Liga sides looking to make it an all-Spanish final.

[ MORE: Premier League Playback ]

Villarreal holds a 1-0 lead over Liverpool, while Sevilla scored two away goals in their 2-2 draw at Shakhtar Donetsk.

Liverpool vs. Villarreal – 3:05 p.m. ET
Villarreal won first leg 1-0

Adrian Lopez’s late winner in the first leg has given Villarreal a slight lead, while the Spanish side did well not to concede an away goal. However, Liverpool have overcome deficits at Anfield before, including their memorable 4-3 victory over Borussia Dortmund in the quarterfinals. Emre Can is back fit for the Reds, as manager Jurgen Klopp will hope his fellow German can help the team to a cup final in his first year in charge.

[ RELATED: Liverpool preparing for another big Thursday night at Anfield ]

Sevilla vs. Shakhtar Donetsk – 3:05 p.m. ET
First leg ended 2-2 draw 

Sevilla are looking to become the first team to win three consecutive Europa League titles as the two-time defending champions face off against Shakhtar Donetsk. Sevilla are in the driver’s seat after scoring two away goals in Ukraine, and will feel confident of advancing to the final with a great home record at the Ramon Sanchez Pizjuan Stadium.

Men in Blazers podcast: Celebrating Leicester’s title with Arlo White

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In the latest Men in Blazers podcast, Rog and Davo celebrate Leicester City’s improbable Premier League title with Leicester’s own Arlo White.

All of the MiB content — pods, videos and stories can be seen here, but to really stay in touch, follow, subscribe, click here:

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European police say Russian mafia infiltrating soccer clubs

LISBON, PORTUGAL - NOVEMBER 04:  Sporting Lisbon fans celebrate after their team score a goal during the Portuguese Liga match between Sporting Lisbon and Uniao Leiria at the Alvalade XXI Stadium on November 4, 2005 in Lisbon, Portugal.  (Photo by Dean Mouhtaropoulos/Getty Images)
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LISBON, Portugal (AP) Portuguese and European police say they have broken up a cell of an important Russian mafia group that allegedly laundered money through European football clubs.

Europol, the European Union’s law enforcement agency, said in a statement Wednesday the group identified EU football clubs in financial distress and infiltrated them with benefactors who brought much-needed cash.

[ MORE: Man City bounced from UCL ]

Once they were in control, the mobsters allegedly laundered millions of euros (dollars) through player transfers, TV rights deals and betting.

Portuguese and European police on Tuesday raided third-division Portuguese club Uniao de Leiria and arrested three key members of the Russian gang. Three other Portuguese clubs’ premises were searched.

Europol said the operation helped identify serious crimes in Austria, Germany, and the United Kingdom, though it gave no details.