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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.

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.

Copa America 2016 preview, Group D: Argentina and Chile aim for first place

Argentina's Lionel Messi celebrates after his teammate Gabriel Mercado scored his side's second goal against Chile during a 2018 Russia World Cup qualifying soccer match at the National Stadium in Santiago, Chile, Thursday, March 24, 2016. (AP Photo/ Luis Hidalgo)
AP Photo/ Luis Hidalgo
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Argentina

Runners-up in three of the last four Copa America tournaments, Argentina would love to break through for a title in the United States. The 1991 and 1993 winners are going on 23 years without a championship.

Star player: Lionel Messi — What else needs to be said for the world’s best player, other than his international record is missing some titles. The Copa America is one of them.

It goes well for them if they play within any reasonable distance of their talent. With Javier Mascherano, Sergio Aguero and Gonzalo Higuain, Argentina run through the group stage and cruise to a final.

But what if Messi is just drained, and neither Aguero and Higuain carry over their club form for country. Second place in this group is no waltz through the knockouts, as Uruguay knocks out the Argentines and cue up more questions about Messi in his national team uniform.


Chile

Alexis Sanchez (below) and La Roja look to build on its first ever Copa America crown, won on home soil last summer in somewhat controversial fashion.

Alexis Sanchez
AP Photo/Martin Mejia

Star player: Arturo Vidal — Yes, Alexis Sanchez might deliver shots, but Vidal stirs the drink. The tempestuous midfielder has everything it takes to turn a game on its head.

Deep from top to bottom: Chile powers through Argentina and then lays waste to Bolivia, able to rest many stars against Panama before beating Group C’s runner-up to set itself up for a repeat of its 2015 title run.

A combustible lineup and aging core combine to leave Chile struggling after a big loss to Argentina. Unable to gather itself together, the Chileans stumble to a draw against Bolivia that leaves them Group D’s runner-up and the victim of Uruguay in the knockout rounds.


Panama

ATLANTA, GA - JULY 20:  Carlos Rodriguez #4 of Panama celebrates with teammate Anibal Godoy #20 after Rodriguez's second half goal during the CONCACAF Gold Cup quarterfinal game against Cuba at Georgia Dome on July 20, 2013 in Atlanta, Georgia.  (Photo by Mike Zarrilli/Getty Images)
(Photo by Mike Zarrilli/Getty Images)

This is a sneaky capable unit coming off a third place finish in the Gold Cup.

Star player: We’ll tap Jaime Penedo, perhaps the lynchpin of a veteran squad. The longtime New York Red Bulls keeper now calls Saprissa his home.

Now is the time for Panama’s experienced core to do big things; Blas Perez, Luis Tejeda, Gabriel Gomez and Felipe Baloy are likely on the end of their national team runs, and San Jose’s Panamaniacs connection of Alberto Quintero and Anibal Godoy — at 28 and 26 — are two of the younger parts of the unit.

But age is a factor when it comes to tournament play, and can Panama possibly outlast either Chile or Argentina? It’s unlikely.


Bolivia

HARRISON, NJ - JUNE 6: Goalkeeper Romel Quinonez #1 of Bolivia makes a save on a corner kick as in front of Theofanis Gekas #17 of Greece during the first half of an international friendly match at Red Bull Arena on June 6, 2014 in Harrison, New Jersey. (Photo by Rich Schultz/Getty Images)
(Photo by Rich Schultz/Getty Images)

Surprising quarterfinalists last summer, Bolivia sits second-last in the CONMEBOL World Cup qualification table. Their only wins since late 2014 have come against Venezuela (2) and Ecuador, and there are a total of just 15 international goals in their 23-man squad.

Star player: Romel Quiñónez — The goalkeeper from Bolivar is set to get a lot of work.

This tournament goes well if: Bolivia handles Panama and manages a draw against Argentina or Chile.

But in all honesty: There will be growing pains for La Verde this summer in the U.S.


Game schedule – Full schedule for Group D, here

Who’s going through, who’s going home: Argentina and Chile thrive, Bolivia and Panama battle for third.

Marquee match: Argentina vs. Chile, June 6. No explanation needed.

Top players to watch

1) Lionel Messi
2) Arturo Vidal
3) Sergio Aguero
4) Angel Di Maria
5) Alexis Sanchez

Copa America 2016 preview, Group C: El Tri looks to build; Can Uruguay deal without Suarez?

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Mexico

El Tri hopes to rebound from a difficult 2015 Copa America that saw them fail to win a match. Top Three appearances in the tournament were once the expectation for Mexico, and being closer to home will raise expectations. And rightly so, as this Mexico team is still in the midst of a very good generation of players.

Star player: Andres Guardado — The PSV Eindhoven midfielder can control a game like a wizard, weaving the ball through back lines and seemingly always in the right place on the pitch.

What a run: Mexico hasn’t lost a single match its 2015 Copa America ouster at the hands of Ecuador, a 17-match stretch that includes a sound defeat of the USMNT in the CONCACAF Cup and a draw against Argentina. With Javier Hernandez and Oribe Peralta firing, Mexico has it in them to make a run to the final. Oh, and El Tri hasn’t allowed a goal in six matches.

But are they sheep in wolves’ clothing? Mexico may be on an incredible run of form, but that win over a moribund U.S. isn’t much to love, and those 17 matches include a pretty weak slate of opponents. Are Mexico’s last few Copa Americas (11th and 12th place finishes) more indicative of its 2016 fate?


Uruguay

Photo by Clive Rose/Getty Images
Photo by Clive Rose/Getty Images

Edinson Cavani will be the star man in the group stage as Uruguay attempts to win its second tournament in three tries. La Celeste have won four Copa Americas and been to six finals.

Star player: Diego Godin — With Luis Suarez’ entire tournament in question, defense is a back part of Uruguay’s hopes. Godin will likely earn his 100th cap during the tournament. With the Atletico Madrid back might be coming off a UEFA Champions League final, and confidence could be a key part of Uruguay’s back line.

And here we go… La Celeste leads CONMEBOL World Cup qualifying through six matches, and Uruguay looks primed to succeed despite the potential loss of Suarez through the group stage. They can navigate that problem thanks to Diego Rolan, Abel Hernandez and Edinson Cavani, and shouldn’t have any trouble with a this group.

But Suarez, though: Yes, Uruguay has depth, but replacing a man who scored 59 goals in 53 games for Barcelona this season? Woof. See what happened when Neymar was injured late in the World Cup for Brazil. Star injuries can sap a team’s courage, and that could hurt Uruguay.


Jamaica

SEOUL, SOUTH KOREA - OCTOBER 13:  Simon Dawkins of Jamaica competes for the ball with Kim Kee-Hee of South Korea during the international friendly match between South Korea and Jamaica at Seoul World Cup stadium on October 13, 2015 in Seoul, South Korea.  (Photo by Chung Sung-Jun/Getty Images)
(Photo by Chung Sung-Jun/Getty Images)

Three straight 1-0 losses saw the Reggae Boyz bounced from the 2015 edition of the tournament, their maiden voyage at Copa America.

Star player: Wes Morgan — Talk about momentum: Jamaica’s strong Gold Cup run worked almost seamlessly into his fairytale season in the middle of Leicester City’s back line.

Coming into its own? After several years off the radar, Winfried Schafer has Jamaica looking capable of doing well in a tournament setting. With a good group of backs including Morgan, Adrian Mariappa and Kemar Lawrence, it’ll be tough for anyone to break down the Reggae Boyz.

All a mirage: Jamaica’s surprising Gold Cup run might’ve been a red herring. Jamaica has lost four of seven matches since Mexico bounced them in controversial fashion.


Venezuela

Venezuela's national soccer team pose for a group photo prior a Copa America Group C soccer match against Brazil at the Monumental stadium in Santiago, Chile, Sunday, June 21, 2015. (AP Photo/Jorge Saenz)
(AP Photo/Jorge Saenz)

Los Llaneros have the misfortune of being in the deep, deep confederation on CONMEBOL, but that doesn’t excuse a brutal year. After beating Colombia to kickoff the 2015 Copa America, Venezuela has won exactly one game. That was a 1-0 win over Costa Rica, and the national team has been dealing with controversy and internal strife.

Star player: Salomon Rondon — West Bromwich Albion’s big striker can turn a defense on its heels with powerful turns and good use of his frame.

Underdog story of a lifetime: With wily veterans making what could be their last runs for the national team, Venezuela sneaks through a winnable group by out-muscling Jamaica and Mexico while battening down the hatches against Uruguay. The world takes notice.

But really, though…  We’d be talking about the tournament equivalent of a Leicester City season. Three-and-out.


Game schedule – Full schedule for Group C, here

Who’s going through, who’s going home: Mexico, Uruguay going through; Jamaica and Venezuela going home

Marquee match: There will be no Luis Suarez come the opener against Mexico, and Arizona will be raucous for El Tri. Circle June 5 on your calendar.

Top players to watch

1) Andres Guardado
2) Edinson Cavani
3) Javier Hernandez
4) Salomon Rondon
5) Diego Godin

Klinsmann praises Nagbe: “He knows he has to push the envelope”

FRISCO, TX - MAY 25:  Pedro Larrea #15 of Ecuador reacts as Nagbe Darlington #10 of the United States celebrates with Christian Pulisic #17 of the United States after scoring against Ecuador during an International Friendly match at Toyota Stadium on May 25, 2016 in Frisco, Texas.  (Photo by Tom Pennington/Getty Images)
Photo by Tom Pennington/Getty Images
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Breaking into a Jurgen Klinsmann side isn’t easy, especially for an attacker.

With the United States men’s national team boss quite happy to trot out Jermaine Jones, Michael Bradley, Clint Dempsey and — when healthy — Jozy Altidore, becoming a regular isn’t easy.

So making the most of your opportunity is key, and Darlington Nagbe has done that most times he’s hit the pitch for the USMNT.

[ USMNT-ECUADOR: Match recap | Player ratings | 3 things ]

And scoring a 90th minute winner against Ecuador, even in a 1-0 friendly win, is going to help his odds of sticking in the coach’s mind. Klinsmann said Nagbe “knows he has to push the envelope”, and lauded him for doing so while cautioning that he’s never questioned the offensive acumen of Portland Timbers’ man.

From MLSSoccer.com:

“Now you also want to tell him ‘Listen, you’ve got to make an impression. You’ve got to learn to play both ways and grind it out defensively, go into 1v1s and win balls as well,’” Klinsmann said.

“And that’s just going forward. He has tremendous talent with the ball at his feet going forward. That’s what we enjoy in MLS every weekend. But the international side is both ways, and that’s what we’re working on. And he’s getting better and better at doing that.”

Nagbe was among a handful of U.S. players to shine during a dominant second half that saw the Timbers midfielder snare the decisive goal, and it’s not a stretch to say he was the brightest. Let’s hope to see him get a chance to start on Saturday against Bolivia.

Lukaku will listen to Everton but “I have my own ideas in mind

SUNDERLAND, ENGLAND - MAY 11: Romelu Lukaku of Everton arrives for the Barclays Premier League match between Sunderland and Everton at the Stadium of Light on May 11, 2016 in Sunderland, England.  (Photo by Ian MacNicol/Getty Images)
Photo by Ian MacNicol/Getty Images
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Romelu Lukaku‘s future looks to be away from Goodison Park.

The big Belgian striker authored 25 goals across all competitions this season, including 18 in the Premier League.

[ MORE: Zlatan has “taken a decision” ]

But as he prepares for the Euro 2016 tournament, Lukaku’s comments make it seem likely that even new investments from up high aren’t going to keep him on Merseyside.

From Sky Sports:

“We have a new investor at Everton and out of courtesy I will listen to what he has to say. But I have my own ideas in mind. I want to win titles.

“I have had a very good season, but it is time for me to write myself a CV. That is why I play football. I got that trophy-winning mindset from Chelsea.”

Lukaku would be a big ticket item on the transfer market, and should go for more than the $41 million price tag Everton paid to get him from Chelsea.