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.

Ligue 1: Neymar sent off, Cavani saves PSG in draw with Marseille

AP Photo/Claude Paris
Leave a comment

ARIS (AP) Neymar was sent off shortly before Edinson Cavani rescued league leader Paris Saint-Germain with an injury-time free kick in a 2-2 draw at rival Marseille on Sunday.

Cavani won the foul after being knocked over by forward Bouna Sarr, and stepped up to curl the ball in off the underside of the crossbar with goalkeeper Steve Mandanda slightly slow to cover.

“It’s an important goal,” said Cavani, after netting his ninth of the campaign. “It was difficult to play here in a tough atmosphere.”

It was down to Cavani to take the free kick because Neymar, the world’s most expensive player when he joined from Barcelona for $260 million, was sent off after picking up a second yellow card in the 87th minute.

The Brazil striker reacted angrily to a cheap challenge from behind from Lucas Ocampos, and sent the Argentine winger tumbling to the ground at Stade Velodrome in retribution.

Shortly before, winger Florian Thauvin acrobatically volleyed home in the 78th minute from substitute Clinton Njie’s pass from the byline to put host Marseille ahead.

“You always have to make the run to the front post,” Thauvin said. “It was a great pass from him.”

Despite conceding the late goal, it was a confidence boost for Marseille after being routed 5-1 at home by PSG last season.

Marseille is fifth, four points behind second-place Monaco and eight behind PSG — which needed an injury-time goal to win 2-1 at Dijon in its previous league game.

“It’s bitterly disappointing, because we thought we’d done enough to win,” Mandanda said. “By the time I saw Cavani’s shot coming it was too late. But we should be happy and proud of our performance.”

PSG was heavy favorite, but Marseille twice took the lead.

Roared on by 60,000 home fans, Marseille scored in the 16th minute. Holding midfielder Luiz Gustavo was given too much room, and the former Bayern Munich midfielder advanced to hit a swerving 30-meter shot into the bottom left corner.

After Cavani missed a chance immediately after, Neymar collected a pass from midfielder Adrien Rabiot just inside the penalty area and drilled a low shot in off the right post in the 33rd.

There were no PSG fans present due to security concerns but Marseille fans clashed with riot police before the game.

La Liga: Asensio leads Madrid past Eibar; Atleti end slump

AP Photo/Francisco Seco
Leave a comment

BARCELONA, Spain (AP) Marco Asensio scored and helped force an own-goal to lead Real Madrid to a 3-0 win at home over Eibar in the Spanish league on Sunday.

The 21-year-old forward got Madrid going in the 18th minute when his well-placed cross meant for Sergio Ramos was headed into the net by Eibar defender Paulo Oliveira.

Asensio put the result beyond doubt 10 minutes later at the Santiago Bernabeu when he drove Francisco “Isco” Alarcon’s cross under goalkeeper Marco Dmitrovic.

Marcelo rounded off the victory in the 82nd after substitute Karim Benzema set him up.

Following a rocky start with only two wins in the first five rounds, Zinedine Zidane’s team has now won four straight in the league as it remained in third place. Barcelona leads by four points over Valencia, with Madrid another point behind.

“Not everything went perfectly, but we are happy for the win,” Zidane said. “It was important to get the three points and to score that many goals.”

The goal was Asensio’s fifth of the season, and his third in the league to go with two from the Spanish Super Cup.

Dmitrovic could have done more to keep out Asensio’s goal, but the Eibar `keeper also denied Isco and Cristiano Ronaldo their chances to add to the lead.


Atletico Madrid broke a four-game winless streak across all competitions after eking out a 1-0 win at Celta Vigo. Diego Simeone’s side is fourth – a point behind Real Madrid.

Striker Kevin Gameiro scored his first goal of the season in the 28th when he swept home a poor clearance of a corner kick by Celta’s Sergi Gomez.

The much-needed victory came after back-to-back draws in the league along with a 2-1 loss to Chelsea and a 0-0 draw at Qarabag in Azerbaijan in the Champions League.

Atletico did little more than cling to the advantage as Celta tried to equalize.

“They made us wait a long time to get this win, and that was why we worked as hard as we did today,” Simeone said. “The team showed that it can dig in, and that it doesn’t mind holding up in its area if it has to protect a result.”

Celta played with a large section of its Balaidos Stadium closed due to safety concerns regarding the structure of the stands. Club president Carlos Mourino said that Celta will refund the cost of the tickets for the seats that had to be left empty.

MLS: FCD really missed the playoffs; LA finish dead last

Photo credit: Houston Dynamo / Twitter: @HoustonDynamo
Leave a comment

FC Dallas 5-1 LA Galaxy

The standings: FC Dallas finish 7th in the West; LA Galaxy finish bottom of the West, and all of MLS

The game: It was too little, too late for FC Dallas, who on Sunday managed just their second win during the months of August, September and October. That’s a stretch of 15 games which saw last year’s Supporters’ Shield winners tumble out of the West’s playoff places and ultimately finish seventh, behind the San Jose Earthquakes on the wins tiebreaker. Roland Lamah scored twice on the day, to go with single tallies from Mauro Diaz, Matt Hedges and Michael Barrios. Oscar Pareja’s side began the season with treble aspirations for a second straight season (the Hoops also won the U.S. Open Cup in 2016), but will be watching this year’s playoffs from the comfort of their own couches. On the other hand, 2017 could have been worse — say, FCD could have been LA, who finished last in MLS for the first time ever. Sigi Schmid, should he remain in the job next season, has quite the rebuilding task on his hands. Let us not forget: LAFC arrive in March.

[ MORE: MLS at Week 34 — it all comes down to this ]

The goals

2′ — Cian heads home an early opener Things started brightly for LA.

37′ — Lamah gets a lucky bounce, pulls FCD level — Right place, right time for Lamah, who’s endured quite the rough first season in MLS.

41′ — Hedges cleans up the mess, and it’s 2-1 — Clement Diop couldn’t hold on after making the initial save, and Matt Hedges was more than ready for the rebound.

49′ — Lamah makes it 3-1 — The rout has officially begun.

68′ — Barrios adds to LA’s misery with a fourth — LA’s 2017 season was over in May (maybe June, if we’re being kind). Every one of these defenders is on a beach right now.

73′ — Diaz makes it 5-1 from the spot — The season just will not end for LA.

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

Man of the match: Roland Lamah

Goalscorers: Cian (2′), Lamah (37′, 49′), Hedges (41′), Barrios (68′) Diaz (73′ – PK)


Houston Dynamo 3-0 Chicago Fire

The standings: Dynamo clinch the West’s 4-seed; Fire clinch the East’s 3-seed

The game: No one wanted to win the West, just like no one ever really wanted to claim a home game in the knockout round. In the end, the Houston Dynamo beat Sporting Kansas City to the 4-seed and the right to host the two sides’ opening-round game this week. Leonardo, Romell Quioto and Mauro Manotas bagged the goals for Wilmer Cabrera’s side which finishes the regular season unbeaten in its last six game (three wins). Chicago, recently resurgent, lose for just the second time in eight games, but in doing so fail to take advantage of New York City FC’s Decision Day draw with Columbus Crew SC. A win would have sent Chicago second in the East, allowing them a week’s rest and preparation before the start of the conference semifinals. Instead, they’ll host the New York Red Bulls this week.

[ MORE: MLS at Week 34 — it all comes down to this ]

The goals

2′ — Leonardo heads home from a long throw — They don’t have to be pretty (especially on Decision Day), which is good, because this one was anything but.

68′ — Quioto goes it alone to make it 2-0 — At some point, someone should probably drag Quioto to the ground rather than let him carry the ball 40 yards into the penalty area. It never happened, and Richard Sanchez couldn’t make the save.

75′ — Manotas adds the insurance a few minutes later — Andrew Wenger’s cross found Manotas at the back post, and the finish was easy for the Colombian.

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

Man of the match: Leonardo

Goalscorers: Leonardo (2′), Quioto (68′), Manotas (75′)

MLS: Timbers beat Whitecaps to top West; RSL out, SKC fall to 5th

Photo credit: Portland Timbers / Twitter
Leave a comment

Portland Timbers 2-1 Vancouver Whitecaps

The standings: Timbers clinch the West’s 1-seed; Whitecaps fall to West’s 3-seed

The game: For the entirety of the regular season, no one wanted to finish top of the Western Conference. That lasted until the final day of the season, as the Vancouver Whitecaps, who sat atop the West for the last two months, lost 2-1 to the Portland Timbers and fell all the way to the 3-seed (and the knockout round) on the back of the Seattle Sounders’ 3-0 victory over the Colorado Rapids. Kendall Waston put the visitors ahead on the half-hour mark, but Liam Ridgewell quickly equalized and Darren Mattocks came back to bite his old team with the game-winning goal in the 48th minute.

[ MORE: MLS at Week 34 — it all comes down to this ]

The goals

29′ — Waston heads home from a free kick for 1-0 — Waston has had himself a pretty good month or so, turning into a regular goalscorer for Vancouver and helping Costa Rica clinch their place at the 2018 World Cup.

32′ — Ridgewell responds quickly, and it’s 1-1 — The initial shot was saved by David Ousted, but the rebound didn’t fall very far and Ridgewell was quick to pounce.

48′ — Mattocks beats his former club, makes it 2-1 — Vytautas Andriuskevicius (Vytas) cut the ball back for Mattocks, and the Jamaican picked out the 40 square inches that weren’t completely obscured at the near post.

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

Man of the match: Darren Mattocks

Goalscorers: Waston (29′), Ridgewell (32′), Mattocks (48′)


Real Salt Lake 2-1 Sporting Kansas City

The standings: Sporting KC clinch the West’s 5-seed; RSL finish 8th in the West

The game: On the bright side, RSL’s revival, which began after three games when Jeff Cassar was fired and Mike Petke was named the new boss, is complete. On the not-so-bright side, so is their season. Petke galvanized a young RSL side over the course of six months and turned them into legitimate playoff contenders, only to come up short on the final day of the regular season. Luis Silva and Brooks Lennon each bagged a goal in Sunday’s 2-1 victory over Sporting KC. Speaking of not-so-bright sides, Sporting’s regular season ends with three losses and two draws from their final five games. In that span, they went from competing for the West’s no. 1 spot, to something of an afterthought with a trip to the Houston Dynamo in the knockout round on tap.

[ MORE: MLS at Week 34 — it all comes down to this ]

The goals

3′ — Silva slots past Dykstra for 1-0 — You could count the number of major mistakes made by Ike Opara this season on one hand, even after this early blunder.

41′ — Lennon gets two chances, makes it 2-0 — Silva drew the attention of four defenders and managed to move the ball wide to Lennon. Andrew Dykstra did well enough to make the initial save, but the rebound fell right back to Lennon, who left no doubt about it with his follow-up.

89′ — Opara heads home a free kick to the near post — Graham Zusi’s free kick was low and where only Opara could get to it. Opara’s header was low and where Nick Rimando couldn’t get to it.

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

Man of the match: Nick Rimando

Goalscorers: Silva (3′), Lennon (41′), Opara (89′)