Chelsea, Manchester City’s new means of dealing with Financial Fair Play


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.

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.

Alejandro Bedoya to miss USMNT vs. Mexico

GLASGOW,  SCOTLAND - NOVEMBER 15 :  Alejandro Bedoya of USA  in action during the International Friendly match between Scotland and USA at Hampden Park on November 15, 2013.  (Photo by Mark Runnacles/Getty Images)
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Alejandro Bedoya will not feature for the United States in the CONCACAF playoff against Mexico on Saturday, and has been replaced on the roster by Bobby Wood.

Bedoya traveled to Los Angeles from his club team Nantes in France, but Jurgen Klinsmann has announced he will be unable to play after falling ill.

[ FOLLOW: All of PST’s USMNT coverage ]

Without Bedoya, Union Berlin midfielder Bobby Wood has been added to the USMNT side. Wood scored the first two goals of his international career this summer in wins over the Netherlands and Germany, and has scored four goals in ten matches for Union Berlin this season. Wood has been training with the U.S. camp throughout the week for the upcoming friendly against Costa Rica.

Bedoya has played well for the USMNT, discounting his short performance against Brazil in September. In that match, Klinsmann played Bedoya out of position against a potent Brazil attack, and he was substituted before halftime. However, playing in his more natural role as a winger or attacking midfielder, many believed Bedoya could be in line for a start against Mexico.

Gerard Pique continues to be booed by Spain supporters

BARCELONA, SPAIN - FEBRUARY 21:  Gerard Pique of FC Barcelona looks down dejected after missing a chance to score during the La Liga match between FC Barcelona and Malaga CF at Camp Nou on February 21, 2015 in Barcelona, Spain.  (Photo by David Ramos/Getty Images)
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Spain secured qualification to EURO 2016 today with a 4-0 win over Luxembourg, but once again a good performance was overshadowed by the rift between fans and Gerard Pique.

The center-back continues to be booed and whistled by his own fans, despite ongoing calls from the manager, players, and Pique himself to stop the jeers.

[ MORE: EURO 2016 roundup ]

The boos started when Pique, who plays for Barcelona, made some joking comments about Real Madrid while celebrating Barca’s treble winning season last year. Ever since then, Pique has been the subject of boos from Real Madrid fans while playing for the national team.

Before the match against Luxembourg, Spanish legend Xavi called for a stop to the antics, saying supporters should put their club allegiances aside when rooting for the national team. However, they paid no attention to one of Spain’s greatest players, as Pique was whistled at throughout the match.

Following the win, Pique was pleased with the result that booked Spain a place in the final tournament, but was still upset over his treatment by his own fans.

I’d like to resolve this situation with the whistling, of course I do but that depends on the fans. I am going to give all I’ve got to do my job. We’ve reached our objective which was to qualify. I think we’re changing the dynamic; the whistling is louder than the applause but we will improve.

I seem to have explained myself a thousand times on this… no one should be in any doubt about me and my commitment; I’ve been with the national side since I was 16. People can take a look through the archives and see everything I have said in the press since I was a kid. You won’t find anything bad, or comments I’ve made against the national team or this country for people to get upset about.

While the rivalry between Barcelona and Real Madrid is one of the biggest in the world, it shouldn’t carry over into the national side. Pique has made more than 70 appearances for the Spanish team, and started every match at center-back in Spain’s 2010 World Cup run, which was the country’s first major trophy in nearly 50 years. He also played every minute of Spain’s EURO 2012 campaign, which resulted in another title.

[ RELATED: Sergio Aguero suffers torn hamstring playing for Argentina ]

With Spain now into EURO 2016, it’s time for fans to move on and start showing Pique the respect he deserves as one of their most consistent and important players over the past five years.