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.

Conte bewildered VAR not used in Chelsea PK controversies

Photo by Mike Hewitt/Getty Images
Leave a comment

If the FA, English football’s governing body, is insistent upon testing video-assistant refereeing (VAR) as they have done in recent FA Cup and League Cup fixtures, Antonio Conte believes they should darn well use it.

[ MORE: Wednesday’s transfer rumor roundup | Tuesday | Friday ]

Following his Chelsea side’s penalty-shootout victory over Norwich City in an FA Cup third-round replay on Wednesday, Conte was equal parts frustrated and confused by the fact that video-referee Mike Jones failed to prompt referee Graham Scott to consult the on-trial system on multiple occasions.

Most notably, Chelsea’s 92nd-minute (extra-time) penalty shout following Timm Klose‘s tackle on Willian. Scott, instead, booked the Brazilian for diving — one of three cards, all shown to Chelsea players, for simulation on the night — and that was that.

“If you watch the replay you see very clearly it is a penalty,” said Conte after the game — quotes from the BBC:

“I think that there was a penalty but not on [Alvaro] Morata — on Willian.

“With Willian, the referee heard what the other referee watched and decided to continue to play. If we want to try to use this new system, it is important for the referee to wait, especially in this incident that is not so clear.

“And then when the referee that is watching had a doubt, he has to call the referee to watch and he can make a decision. The referee on the pitch has to make the decision, not one off the pitch.

“We can improve it for sure but we need to try to take the best solution. The final decision is for the ref on the pitch. Otherwise, why is there this ref?

“The mistake wasn’t of the ref on the pitch but the person watching. When you see this, you have to call the referee.”

VAR was used in another third-round replay, on Tuesday, and helped to correctly rule Leicester City striker Kelechi Iheanacho as being in an onside position when he scored his side’s second goal. While offside/onside calls are much clearer, cut-and-dry decisions to make — and with the aid of a natural stoppage in play — clearly much work lies ahead with regard to the process of determining whether the referee has made a “clear and obvious error,” which remains the threshold for using VAR, in instances of fouls/diving.

Copa QF: Messi misses PK, Barca’s 29-game unbeaten run ends

Photo by Alex Caparros/Getty Images
Leave a comment

MADRID (AP) — Lionel Messi missed a penalty and Barcelona conceded late as its 29-match unbeaten streak ended in a 1-0 loss to city rival Espanyol in the first leg of their Copa del Rey quarterfinal on Wednesday.

Messi failed from the spot in the 62nd minute, his shot brilliantly saved by goalkeeper Diego Lopez.

Youngster Oscar Melendo netted the winner for the hosts in the 88th with his first goal as a professional.

“I have no words, I was looking forward to this first goal,” said the 20-year-old Melendo, who had come on as a substitute in the second half.

It was Espanyol’s first win against Barcelona at its RCDE Stadium.

The second leg of the Catalan derby is next week at Camp Nou.

Barcelona hadn’t lost since a 2-0 defeat by Real Madrid in the second leg of the Spanish Super Cup on Aug. 16. It had won 23 of its last 29 matches in all competitions.

“We knew we would lose one day,” Barcelona midfielder Sergio Busquets said. “The positive thing is that in a week we have a chance to rebound and advance.”

Messi had his chance from the spot after Sergi Roberto was fouled by Esteban Granero, but his low shot into the right corner was stopped as Diego Lopez dived to his left to tip the ball away.

It was a rare miss for Messi, who is having a stellar season and is the Spanish league’s top scorer with 17 goals.

“The penalty save gave us the boost that we needed,” Melendo said. “We were playing too defensively.”

Melendo netted the winner with a low shot from the middle of the area after a well-timed pass by Marc Navarro.

Barcelona coach Ernesto Valverde did not use all of the team’s regular starters, leaving players such as Luis Suarez on the bench.

The match was interrupted for a few minutes in the 76th after Barcelona goalkeeper Jasper Cillessen was hit by an object thrown by fans behind his goal.

Barcelona midfielder Paulinho was replaced in the second half because of a foot injury.

Neymar makes history in PSG’s 8-0 thrashing of Dijon

Photo by Dean Mouhtaropoulos/Getty Images
Leave a comment

A pair of statements which are both true, and not at all mutually exclusive, if you allow logic and balance to prevail: 1) Neymar and his friends at Paris Saint-Germain are quite good at the soccer; 2) they aren’t challenged enough in Ligue 1.

[ MORE: Wednesday’s transfer rumor roundup | Tuesday | Friday ]

Of course, they’ll be challenged plenty during the latter stages of the Champions League (they drew Real Madrid in the round of 16), but on a weekly basis, the level of competition in their domestic league isn’t of a high standard to indicate just how good they are. That’s the new debate with regard to PSG — it’s no longer, “Are they good? Maybe they’re just a big fish in a small pond.”

On Wednesday, led by Neymar, the most expensive transfer signing of all-time, Unai Emery’s side thrashed 10th-place Dijon to the tune of 8-0. As mentioned, Neymar did slightly more than just pull his own weight — four goals to go with a pair of assists; he lent a direct hand in six of the eight goals.

[ MORE: Chelsea survive Norwich in PKs, reach FA Cup 4th round ]

Even the statistical whizzes at Opta appear somewhat stumped by such an abundance of goals.

Anytime the keepers of stats toss out a “since we started collecting data,” be proud of your achievement. Be very, very proud.

FA Cup: Chelsea, Swansea into 4th rd; B’mouth ousted by Wigan

Photo by Mike Hewitt/Getty Images
1 Comment

Two more Premier League sides booked their place in the fourth round of the FA Cup, courtesy of third-round replays, on Wednesday, bringing the PL’s total representation to 14 clubs…

[ MORE: Tuesday’s 3rd-round replay roundup ]

Chelsea 1-1 (5-3 PKs) Norwich City

Chelsea’s scoreless streak — for both themselves and opponents (three straight 0-0 draws across all competitions) — came to a merciful end on Wednesday, but not before surpassing the 300-minute mark. Michy Batshuayi — who, it must be said, struggled mightily in making just his third start (all in cup competitions) since mid-October — broke yet another scoreless deadlock in the 55th minute, ending the Blues’ scoreless run at 331 minutes.

With barely 30 seconds remaining in second-half stoppage time, 19-year-old left back Jamal Lewis brought the Canaries level with a thunderous header off the post.

Extra-time saw Chelsea reduced to 10, and then nine, men. Pedro was booked for diving just after the hour mark, and the Spaniard earned a second yellow card for a wild challenge in the 117th minute. Four minutes later, in second-half extra-time stoppage time, Alvaro Morata was booked for diving and proceeded to shout and gesticulate in the referee’s face. A second yellow was shown immediately.

Willy Caballero denied Nelson Oliveira on Norwich’s first attempt of the ensuing penalty shootout, giving the Blues the only cushion they’d need as Willian, David Luiz, Cesar Azpilicueta, N'Golo Kante and Eden Hazard all converted.

Chelsea will host Newcastle United in the fourth round on Sunday, Jan. 28.

[ MORE: Wednesday’s transfer rumor roundup | Tuesday | Friday ]

Swansea City 2-1 Wolverhampton Wanderers

Swansea faced the greatest threat of a Cupset on Wednesday but managed to come out on top, knocking off runaway Championship leaders and champions-elect Wolves. The Swans went ahead through Jordan Ayew in the 11th minute before the prolific Diogo Jota, who’ll be in the PL one way or another next season, brought Wolves back to 1-1 in the 66th. Three minutes later, Wilfried Bony bagged the winner to see Carlos Carvalhal’s side through to the next round.

Swansea will visit League Two side Notts County, who knocked off Championship playoff hopefuls Brentford in the third round, on Saturday, Jan. 27.

Wigan Athletic 3-0 Bournemouth

Bournemouth sat 32 places above Wigan in the English football pyramid when Wednesday’s replay kicked off, and it matter not a single iota, as Paul Cook’s side hammered the Cherries at the DW Stadium. Sam Morsy, Dan Burn and Callum Elder bagged the goals for the League One leaders (three points clear after 26 of 46 rounds played). Wigan have alternated each of the last four seasons, finishing 23rd in the Championship and leading/winning League One. It’s been five years since the Latics were relegated from the PL, in the 2012-13 season.

Wigan will host West Ham United in the fourth round on Saturday, Jan. 27.