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Tax-free Monaco embraced after club’s $68 million payment keeps it in French soccer

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After conflict between Monaco and the rest of French soccer left the top tier’s seven-time champions on the brink of explosion from their league, the club and the Ligue de Football Professionel reached an agreement on Friday that will allow Ligue 1’s second place team to stay in the French league. Whereas AS Monaco were on the brink of being excluded from next season’s competition because of a new rule targeting their tax-exempt status, the club will now pay an expensive, one-time fee to maintain their place in le Championnat.

“Out of concern for the equality and balance of the competition, AS Monaco are committed to paying a voluntary, fixed and definitive sum of €50 million to the LFP,” the league said in a Friday statement, “and will withdraw their plea to the Council of State.”

Monaco, having spent lavishly since Russian businessman Dmitry Rybolovlev bought the club in Dec. 2011, pays $68.4 million to stay in the league, a status the club has enjoyed since 1933. With tax rates against high incomes climbing in France, the remainder of the French league had grown tired of Monaco’s competitive advantage, the club based in a tax-free principality that operates independent of French law. That advantage has helped lure like likes of Radamel Falcao, João Moutinho, and James Rodríguez to the club, with Rybolovlev’s team alleviated of paying the personal income tax that is customarily covered by French clubs.

source: AP
Dmitry Rybolovlev purchased AS Monaco in 2011 as the club embarked on their two-year stint in the second division. His spending has vaulted them back into Ligue 1 and into a UEFA Champions League spot. (Photo: AP.)

In response to Rybolovlev’s spending, the LFP had adopted a rule that, effective next season, would exclude all clubs whose offices were not located in France. Monaco was pursuing a resolution through the French courts before Friday’s resolution, one that Rybolovlev touted on the club’s website:

“From the beginning we wanted to find an intelligent solution which would work for both sides, within a favourable climate for negotiations.

The AS Monaco FC project can help raise the level of French football and it is good that this has been understood.”

The idea that teams like Monaco and Paris Saint-Germain can help raise Ligue 1’s level underscored the early acquiescence to PSG’s rise. Part of the theory was revenues PSG would raise (or, merely inject) money into the rest of the first division either through player purchases or by raising the league’s commercial profile.

Based in the French capital, PSG is subject to the same taxation as 18 other clubs in Ligue 1. Monaco, however, doesn’t have to endure the same tax on Falcao as PSG’s paying for Zlatan Ibrahimovic. Where it’s customary to have agents negotiate such that clubs are responsible for players’ income taxes, Monaco faces a significant edge when accounting for their high-end talents.

Thanks to Friday’s $68.4 million settlement, that edge gets preserved in perpetuity. From the club’s statement announcing the agreement:

By paying a single, lump-sum, voluntary contribution of EUR 50 million, payable in installments, AS Monaco FC is demonstrating its commitment to French football and will be able to continue to pursue its project for the benefit of all stakeholders.

The shared history between French football and one of its most faithful representatives has made it possible to find an agreement that will put an end to their legal dispute, with an undertaking from both sides that this agreement cannot be challenged later.

If the point of pursuing Monaco was restoring competitive advantage, it’s unclear this agreement makes sense. The $68.4 million fee Monaco’s paying represents only a few years’ taxes on their players. In the big picture, this isn’t something that’s going to inhibit Monaco from taking advantage of their slanted playing field.

In accepting this solution, the LFP’s agreeing with Rybolovlev, even if their statement touted the need for “equality and balance.” Having settled for such a small payment, the deal does little to achieve those ends. Though it may have symbolic value in getting Monaco to acknowledge their advantage, it won’t inhibit players from moving to the club. It won’t deter Rybolovlev from growing his team. It won’t stop Monaco from exploiting their advantage on the rest of their league.

But Ultimately, it does them no good to kick out Monaco. Perhaps France would have a more equitable competition, but they’d have it at the expense of their commercial growth, something that can’t be taken lightly for a circuit that continues to attract some of the world’s best talent. With clubs like PSG and Monaco in the league, Ligue 1‘s profile could eventually challenge that of the Serie A and Bundesliga. When that challenge translates into revenues, the rest of le Championnat‘s clubs may be better off.

At least, that the end game the LFP are hoping to see. Whether that transpires, only time will tell. After Friday’s agreement, however, the experiment is set to run its course. The LFP has signed off on Monaco’s competitive advantage, accepting a large if token payment in the process. Now Monaco has to make good on their promise.

NASL weekend preview: Rayo OKC faces stiff test against Minnesota

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Following a midweek loss against FC Edmonton, the New York Cosmos will try to rebound at home against Puerto Rico FC.

The Cosmos currently have two losses during the Fall Season, having conceded 10 goals in six matches, which is the second-most in NASL.

[ MORE: MLS weekend preview ]

With no unbeatens remaining, Spring Season champion Indy Eleven looks to keep its place near the top of the table against Miami FC.

Minnesota United looks to build off of its strong start against league leaders Rayo OKC, with the two teams separated by a mere two points.

Meanwhile, the Fort Lauderdale Strikers continue to search for their first win of the Fall Season against the struggling Jacksonville Armada.

Saturday

New York Cosmos vs. Puerto Rico FC

Ottawa Fury vs. Tampa Bay Rowdies

Fort Lauderdale Strikers vs. Jacksonville Armada

Miami FC vs. Indy Eleven

Rayo OKC vs. Minnesota United

Sunday

FC Edmonton vs. Carolina RailHawks

Liverpool keeper Karius to miss two months

MEYRIN, SWITZERLAND - JULY 22:   Loris Karius of 1. FSV Mainz 05 in action during the pre-season friendly match between 1. FSV Mainz 05 and AS Monaco at Stade des Arberes on July 22, 2015 in Meyrin, Switzerland.  (Photo by Harold Cunningham/Getty Images)
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He was tabbed to be Liverpool’s opening day starter in goal, but Loris Karius could now miss the first two months of the Premier League season after suffering a hand injury in Wednesday’s International Champions Cup loss against Chelsea.

[ MORE: Real looking at Sissoko, Verratti as midfield options ]

The 23-year-old was brought to the Reds this summer from Bundesliga side Mainz for over $6 million.

Karius opted not to represent Germany at next month’s Olympic Games in Rio de Janeiro in order to avoid missing any game action with Liverpool. Unfortunately, the young keeper will now likely miss between eight and 10 weeks.

Italian legend Christian Vieri looks to make comeback

ROME, ITALY - OCTOBER 19:  Christian Vieri poses with the UEFA Champions League Trophy during the UEFA Champions League Trophy Tour 2012/13 on October 19, 2012 in Rome, Italy.  (Photo by Paolo Bruno/Getty Images for UEFA)
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His career ended over seven years ago, but former Italy international Christian Vieri is looking to make an improbable comeback in a country that continues to attract big stars.

The 43-year-old Vieri is reportedly coming out of retirement to join the Chinese Super League, and posted a video on Twitter confirming his plans.

Last playing in 2009, Vieri finished his career where it began — in Italy — with Atalanta. During his career, the striker played for 10 clubs in his native country, while also spending time in Spain and France with Atletico Madrid and Monaco, respectively.

Vieri made his name with Inter Milan, where he recorded six straight seasons with double-digit goals. At the height of his career with Internazionale, Vieri netted 27 times across all competitions during the 2002/03 season.

Transfer Rumor Roundup: Real looking at Sissoko, Verratti

PARIS, FRANCE - JULY 10:  Cedric Soares (l) and William Carvalho of Portugal (c) combine to tackle Moussa Sissoko of France during the UEFA EURO 2016 Final match between Portugal and France at Stade de France on July 10, 2016 in Paris, France.  (Photo by Clive Rose/Getty Images)
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While Real Madrid still holds a slim hope of winning the signature of Juventus midfielder Paul Pogba, Los Blancos are said to have a viable backup plan in the event the Frenchman does the inevitable and joins Manchester United.

[ MORE: Ten most noteworthy summers transfers (so far) ]

Real is reportedly looking at another French midfielder, Moussa Sissoko, to fill the center of the park. The 26-year-old has made 118 appearances for Newcastle since joining the Magpies back in 2013.

While it may be outside option, Real is also interested in Paris Saint-Germain midfielder Marco Verratti, although the French champions likely aren’t willing to part ways with the player.


Andy King has signed a new four-year contract with Leicester City, after Jamie Vardy and Ben Chilwell each agreed to a new deals this summer with the Foxes.

The midfielder appeared in 25 matches last season in the team’s Premier League title-winning campaign, while also featuring for Wales this summer at EURO 2016.


Aston Villa manager Roberto di Matteo has confirmed that Everton is set to acquire Idrissa Gueye.

The 26-year-old shined during the 2015/16 season for Villa, appearing in matches as a deep-lying midfielder. Everton has reportedly met the player’s release clause of over $9 million, and is now discussing personal terms with Gueye.


Swansea City striker Bafe Gomis has joined French side Marseille on a season-long loan after netting 17 goals in 71 matches in England.

The Frenchman is likely seen as the replacement for Michy Batshuayi, who left for Chelsea this summer.