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.

Conte admits nerves through narrow win over Southampton

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Antonio Conte had bad vibes about Chelsea’s visit from wounded Southampton, and his Blues didn’t make the morning at Stamford Bridge any easier on the Italian boss.

Marcos Alonso scored a free kick goal but the Blues could not find a second in a 1-0 win that had Conte proverbially watching through his fingers.

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Chelsea moves into a tie for second with Manchester United before the Red Devils play Sunday, and Conte is exhaling after the victory. From the BBC:

“When you do not score the second goal, you have to suffer. You are afraid at every corner and free-kick and the opponent has the chance to draw. We dominated the game, shooting 24 times, hitting the post and we needed to score the second goal to be relaxed.

The Blues outshot Saints 24-6, and Southampton only managed to put two shots on target. Chelsea hosts Bournemouth in a League Cup quarterfinal on Wednesday before returning to Premier League action at Everton on Saturday.

Stoke City 0-3 West Ham United: Arnautovic embraces villain role

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  • Controversial PK helps WHU in front
  • Arnautovic booed all day, makes it 2-0
  • Irons out of the drop zone

Marko Arnautovic got the last laugh on a subplot heavy day at the bet365 Stadium, scoring a goal and constantly threatening his old club as West Ham United beat Stoke City 3-0 on Saturday.

The match was delayed an hour thanks to a power outage, but Arnautovic had the electricity ramped up early and he certainly celebrated his second half goal against his former club with vigor.

Mark Noble converted a controversial Manuel Lanzini-won penalty to make it 1-0, and Diafra Sakho completed the scoring off a Lanzini feed in the win.

David Moyes and West Ham move out of the drop zone with the win, moving 15th with 17 points. Stoke is now just a point ahead of 18th place Newcastle United.

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The home crowd was all over Marko Arnautovic, who left Stoke for West Ham this summer, and the early tackles for both teams showed an ornery nature.

Yet it was Stoke who saw an effort bound off the post in the 17th minute, though the optimism was short-lived as a counter attack saw Manuel Lanzini dive into Erik Pieters to earn a penalty.

Noble converted the penalty, and West Ham was up 1-0 in the 19th.

Butland got the crowd in full throat when he saved villain Arnautovic’s breakaway shot. Then Lanzini knuckled a shot at Butland which the English goalkeeper turned away.

Arnautovic had another chance to burn his old team, but Kevin Wimmer got a slight deflection on his countryman’s 59th minute attempt.

He’d continue to do everything but score, cranking a left-footed shot off the crossbar in the 68th.

Charlie Adams crossed for Ryan Shawcross in the 72nd minute, but the big man couldn’t head the ball down on goal.

Arnautovic finally got his goal on a cute 1-2 with Lanzini, and he certainly celebrated against his old side.

It should’ve been 3-0 thanks to deft work from Chicharito, but Diafra Sakho needed too many touches before back heeling a shot wide of the far post.

Sakho would get his goal off a neat feed from

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Brighton 0-0 Burnley: Seagulls continue barren spell

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  • Seagulls without a win in seven
  • Murray misses first half PK
  • Wood denied twice in second half

Brighton and Hove Albion drew 0-0 with Burnley at the Amex Stadium on Saturday with Chris Hughton‘s side now without a win in seven games and they’ve scored just once in their last six Premier League encounters.

Glenn Murray blazed over a first half penalty kick to add to Brighton’s woes, while Burnley were denied by Mat Ryan in the second half as the spoils were shared.

With the point Burnley move on to 32 points, while Brighton have 18 and are just three points above the drop zone.

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Brighton did most of the pressing early on with Murray causing plenty of problems and Burnley could hardly get out of their own half.

Johann Berg Gudmundsson had a shot which flew just wide but that was as close as the Clarets came.

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Before the break Anthony Knockaert‘s shot hit the post and then Lewis Dunk‘s header was cleared off the line by Phil Bardsley, before a massive moment arrived.

James Tarkowski bundled over Murray in the box but the Brighton forward blasted the penalty kick over the bar as the Seagulls wasted a glorious opportunity.

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Chris Wood forced Mat Ryan into a save early in the second half but the chances kept coming for Brighton.

Knockaert squirmed an effort just wide of the far post for Brighton and then Wood had the ball in the net after Scott Arfield was twice denied but he was in an offside position.

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Ryan denied Wood again late on as he closed down the onrushing Burnley forward brilliantly, and both teams had to settle for a point on the South Coast.

Watford 1-4 Huddersfield Town: Mooy at the double for Town

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  • Town build 3-0 lead
  • Mooy scores, converts PK
  • Deeney, Hogg sent off

Aaron Mooy scored a pair of goals and both teams finished with 10 men as Huddersfield Town battered Watford 4-1 on Saturday at Vicarage Road.

Elias Kachunga and Laurent Depoitre also scored for Town, which moves 11th with 21 points.

Abdoulaye Doucoure scored Watford’s goal, as the Hornets stay ninth with just one more point than Town.

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Kachunga caused some early problems for Watford, winning a fifth minute corner kick.

That corner bred another one, and Kachunga deposited it behind Heurelho Gomes after a series of sloppy, cagey touches from both sides.

Kachunga then needed to be removed from the match after just 16 minutes following a left knee injury.

Richarlison had a chance to level the score in the 21st minute, but the tricky shot arrowed over the frame.

Mooy made it 2-0 when Watford missed a pair of chances to deal with a cross and the Australian was in the catbird seat to tap home.

And it went from bad to worse for the Hornets when Troy Deeney picked up a straight red card for a two-footed scissor tackle in the 33rd minute.

Depoitre scored shortly after halftime to pile woe on Marco Silva‘s men. It just wasn’t their day, though a second yellow card to Jonathan Hogg did put both teams on 10 men with 28 minutes to play.

Doucoure put a little drama in the match with a terrific goal from 20 yards, besting Town goalkeeper Jonas Lossl.

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