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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.

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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.

Sunderland sign Lescott on short-term deal

WATFORD, ENGLAND - APRIL 30:  Joleon Lescott of Aston Villa reacts during the Barclays Premier League match between Watford and Aston Villa at Vicarage Road on April 30, 2016 in Watford, England.  (Photo by Clive Rose/Getty Images)
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Sunderland have signed defender Joleon Lescott on a short-term contract until the end of the season.

[ VIDEO: Premier League highlights

Lescott, 34, will add plenty of experience to Sunderland’s defense and will link up with former manager David Moyes who helped him become an England international during their time together at Everton from 2006-09.

The two-time Premier League winner with Manchester City in 2011-12 and 2013-14 has bounced around in the past two years since leaving the Manchester club, playing for West Bromwich Albion, Aston Villa and AEK Athens after spending five years at City.

Lescott has also made 26 appearances for England, playing and scoring at EURO 2012 as his header put England ahead against France in their group opener.

Speaking about the deal, see the video below, Lescott is ready to help out the Black Cats in whatever way he can.

With Lamine Kone, John O'Shea and Papy Djilobodji around, Moyes now has options at the back and could play a three-man central defense to help bolster Sunderland’s chances of survival.

The Black Cats currently sit bottom of the table, three points from safety.


 

Investors want MLS stadium on site of Chargers’ former home

Qualcomm Stadium sits empty Thursday Jan. 12, 2017, in San Diego. The San Diego Chargers announced Thursday that they would move the team to Los Angeles. (AP Photo/Denis Poroy)
AP Photo/Denis Poroy
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SAN DIEGO (AP) With the NFL’s Chargers leaving for Los Angeles, a group of private investors unveiled plans Monday to bring an MLS team to San Diego and build a stadium that can be shared with San Diego State.

In addition to the joint-use venue which could seat up to 30,000, the 166-acre Qualcomm Stadium site which has housed the Chargers would also be used for a sports and entertainment district, according to the FS Investors group’s plans. The plans also set aside acreage for a larger stadium, in case the NFL decides to return to San Diego.

[ MORE: Transfer window names to watch ]

“There are a lot of people that were disappointed with that (the Chargers’ move) and understandably so,” said Nick Stone, a partner in the investors group, which would develop the property and own the MLS franchise. “But we think this is a really, really interesting time to look at the opportunity to bring soccer to San Diego. It’s a very logical market for that.

“We can bring what is the world’s most popular sport, and the fastest growing sport in the U.S.,” Stone said. “One door closed but a really great door opened.”

The Chargers announced on Jan. 12 that they would play in the Los Angeles area next season after 56 seasons in San Diego.

Stone’s group, which includes Padres lead investor Peter Seidler and former Qualcomm president Steve Altman, has the exclusive negotiating rights with the MLS. The league is expected to designate expansion cities this fall.

The investor group said it wouldn’t require taxpayer money for its plan, which includes buying the land now occupied by Qualcomm.

[ MORE: CONCACAF Champions League’s big reboot ]

“This is an exciting concept that could welcome major league soccer to San Diego without public subsidy, provide a home for Aztecs football and create a long-awaited river park,” San Diego Mayor Kevin Faulconer said in a statement. “I look forward to seeing the final plan.”

After five years, FS Investors said it would donate its half ownership of the stadium to San Diego State. San Diego State’s football team now plays at Qualcomm Stadium, which is also home to college football’s Holiday and Poinsettia bowls.

Report: USMNT forward Picault could be off to MLS

http://www.fcstpauli.com/profis/news/9628

FC St. Pauli
www.fcstpauli.com/profis/news/9628
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Remember Fafa Picault?

The FC St. Pauli striker became a surprise name in USMNT circles when former coach Jurgen Klinsmann shouted him out on Twitter, later calling him into U.S. camp.

Picault, 25, is a center forward who has battled back trouble at times this season, limiting him to six appearances for the 2.Bundesliga side.

[ MORE: Transfer window names to watch ]

He broke out last season, scoring four goals and adding two assists in 16 appearances last season. The former NASL player was capped by Klinsmann in May, going 19 minutes in a 3-1 win over Puerto Rico.

Philadelphia is the top spot for Picault, according to Bild and translated by VAVEL reporter Jonny Walsh. It’s just agent talk, but we’d like to get a closer look at the American man.

How might the USMNT lineup against Serbia?

U.S. men's national soccer team coach Bruce Arena, left, talks to captain Michael Bradley during a practice session Wednesday, Jan. 11, 2017, in Carson, Calif. Coach Arena opens camp with the team in the same training complex where he spent the past eight years running the LA Galaxy. Arena returned to the U.S. team in November to salvage its run for World Cup qualification. (AP Photo/Jae C. Hong)
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It’s six days to Sunday, the first time we’ll see Bruce Arena manage the United States men’s national team since his rehiring late last year.

The Yanks host Serbia in San Diego before moving to Chattanooga for a match against Jamaica. Both matches should be open-and-shut wins, as the Americans’ MLS-only lineup get “B-teams” from Serbia and Jamaica.

[ MORE: Serbia, Jamaica rosters ]

Possible starting center back Matt Hedges and his FC Dallas teammate, Kellyn Acosta, will miss through injury, while Arena sent Kekuta Manneh to Wales for Vancouver Whitecaps camp.

That leaves 28 names — full roster at bottom — and the level of competition means Arena can take risks, like his choice to try Graham Zusi at right back.

Arena used several different formations with the Galaxy last season, opting for anything from a 4-4-2 to a 4-3-3 to a 4-4-1-1.

Here are some options against Serbia.

4-2-2-2

Arena could steady the middle of the pitch while using a pair of attack-minded veteran midfielders with points to prove.

Robles

Rosenberry — Birnbaum — Zimmerman — Beasley

Bradley — McCarty

Feilhaber —————————Kljestan

Morris — Altidore


4-4-2 (diamond) — Veteran heavy

Arena likes his veterans, and may want to give them the benefit of the doubt in front of fans and the eyes of U.S. Soccer.

Rimando

Zusi — Marshall — Evans — Beasley

Bedoya — Bradley — Jones — Kljestan

Altidore — Zardes


4-3-3

Bingham

Rosenberry — Birnbaum — Zimmerman — Garza

Bradley

Nagbe — Bedoya

Zardes — Altidore — Morris


Full roster

Goalkeepers: David Bingham (San Jose Earthquakes), Nick Rimando (Real Salt Lake), Luis Robles (New York Red Bulls), Brian Rowe (LA Galaxy)

Defenders: DaMarcus Beasley (Unattached), Steve Birnbaum (D.C. United), Brad Evans (Seattle Sounders FC), Greg Garza (Atlanta United FC), Taylor Kemp (D.C. United), Chad Marshall (Seattle Sounders FC), Keegan Rosenberry (Philadelphia Union), Walker Zimmerman (FC Dallas), Graham Zusi (Sporting Kansas City)

Midfielders: Alejandro Bedoya (Philadelphia Union), Michael Bradley (Toronto FC), Benny Feilhaber (Sporting Kansas City), Jermaine Jones (Unattached), Sacha Kljestan (New York Red Bulls), Sebastian Lletget (LA Galaxy), Dax McCarty (New York Red Bulls), Darlington Nagbe (Portland Timbers), Chris Pontius (Philadelphia Union), Wil Trapp (Columbus Crew SC)

Forwards: Juan Agudelo (New England Revolution), Jozy Altidore (Toronto FC), Jordan Morris (Seattle Sounders FC), Chris Wondolowski (San Jose Earthquakes), Gyasi Zardes (LA Galaxy)