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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.

MLS Snapshot: Toronto FC 1-1 Philadelphia Union (video)

Toronto FC's Jozy Altidore, center, shields the ball from Philadelphia Union's Richie Marquez, left, as Ken Tribbett looks on during first half MLS soccer action in Toronto on Saturday, Sept. 24, 2016. (Chris Young/The Canadian Press via AP)
Chris Young/The Canadian Press via AP
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The game in 100 words (or less): Another week goes by, and the world remains clueless with regard to the top three places in MLS’s Eastern Conference. Toronto FC entered the weekend with a two-point lead on the New York Red Bulls and New York City FC; then, NYCFC won big on Friday to go a point ahead. With RBNY still to face the Montreal Impact on Saturday, all three sides could finish the weekend on 48 points, a three-way tie atop the East, following TFC’s 1-1 draw with the Philadelphia Union at BMO Field. The home side went down a goal in the first half, via Alejandro Bedoya’s firt MLS goal — a chipped beauty (WATCH HERE) — before Justin Morrow played the role of unlikely hero, snatching TFC’s equalizer in the 70th minute. Saturday’s game marked TFC’s third without Sebastian Giovinco (quad/adductor injuries). TFC have won five of a possible nine points without the reigning — soon-to-be-back-to-back? — MLS MVP.

[ MORE: Playoff Picture — 4 teams can clinch playoff berth this weekend ]

Three Four moments that mattered

25′ — Bedoya chips Irwin for 1-0 — It was just about the most difficult route to goal, but Bedoya wasn’t fazed one bit. Poor Clint Irwin, he was hardly even off his line. (WATCH HERE)

43′ — Irwin makes the point-blank save on Herbers — Reaction saves from point-blank range don’t get much better than this one by Irwin. Keeping his side in it.

70′ — Morrow slots home to bring TFC level — Jonathan Osorio did brilliantly to keep his composure with ample opportunity to take a difficult shot toward goal. Instead, he played Morrow through, and the full back finished the chance like a world-class striker.

90+3′ — Altidore hacked down in the box, no PK given — Ismail Elfath had long ago swallowed his whistle, apparently, because Jozy Altidore was hacked down inside the penalty area by C.J. Sapong, and TFC were absolutely bewildered by the no-call.

[ FOLLOW: All of PST’s MLS coverageStandings | Stats | Schedule ]

Man of the match: Alejandro Bedoya

Goalscorers: Bedoya (25′), Morrow (70′)

VIDEO: Alejandro Bedoya’s first MLS goal was a delicious chip

Alejandro Bedoya, Philadelphia Union (Photo credit: Philadelphia Union / Twitter: @PhilaUnion)
Photo credit: Philadelphia Union / Twitter: @PhilaUnion
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Good things come to those who wait.

Alejandro Bedoya has been very patient in waiting for his first MLS goal after making his summer transfer to the Philadelphia Union. 547 minutes — not too terribly long, honestly — is all it took the U.S. national team midfielder to bag the first stateside club goal, and it proved more than worth the wait on Saturday.

[ FOLLOW: All of PST’s MLS coverage ]

Goalkeeper Clint Irwin was precisely 3.5 yards off his line as Bedoya dribbled into space down the right side of the penalty area, 20 yards from goal and closing. At 18 yards out, Bedoya went for goal.

The obvious choice is to put your right foot through the ball, and hit it low and inside the far post. Bedoya had something else — something much more audacious and delightful — on his mind.

Take. A. Bow.

La Liga & Serie A: Real Madrid falter; Barcelona score 5 (again) without Messi

GIJON, SPAIN - SEPTEMBER 24:  Luis Suarez of FC Barcelona celebrates with his teammate Neymar of FC Barcelona after scoring the opening goal during the La Liga match between Real Sporting de Gijon and FC Barcelona at Estadio El Molinon on September 24, 2016 in Gijon, Spain.  (Photo by Juan Manuel Serrano Arce/Getty Images)
Photo by Juan Manuel Serrano Arce/Getty Images
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A roundup of Saturday’s action in Spain and Italy’s top flights…

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Las Palmas 2-2 Real Madrid

Real Madrid remain top of La Liga, but their lead was reduce from three points to one on Saturday. Up 2-1 heading into the games final 20 minutes, Zinedine Zidane elected to pull Cristiano Ronaldo off the field in the 72nd minute — much to the Portuguese’s displeasure. Zidane then watched as his side conceded an 85th-minute equalizer and ultimately settled for a draw.

Marco Asensio put Los Blancos ahead in the 33rd minute, but Las Palmas answered through Tana in the 38th minute, making it 1-1 at halftime. Karim Benzema scored what looked to be the winner in the 67th minute, but Sergio Araujo pegged the league leaders back once more with five minutes of regular time remaining.

Sporting Gijon 0-5 Barcelona

No Lionel Messi, no problem for Barcelona, who still have those Luis Suarez and Neymar guys. Without the world’s undisputed best player on Saturday, the dynamic duo combined to score three goals — two more than Barca would need on the day — as the Blaugrana scored five or more goals for the third time in six league games this season.

Rafinha and Arda Turan — decent enough players in their own right — bagged the other goals, and just like that, Barca capitalized on the points dropped by Madrid.

Elsewhere in La Liga

Eibar 2-0 Real Sociedad
Athletic Bilbao 3-1 Sevilla

Sunday’s La Liga schedule

Leganes vs. Valencia — 6 a.m. ET
Atletico Madrid vs Deportivo La Coruña — 10:15 a.m. ET
Villarreal vs. Osasuna — 12:30 p.m. ET
Espanyol vs. Celta Vigo — 2:45 p.m. ET


Palermo 0-1 Juventus

Juve won for the fifth time in six games this season, but needed an own goal from Palermo’s Edoardo Goldaniga to do so. The game was scoreless at halftime, before the 22-year-old center back shanked his clearance of Dani Alves’s cross past Josip Posavec and into his own net for the game’s only goal in the 49th minute. That’s 15 points from six games for Juve, who remain top of Serie A by a point.

Napoli 2-0 Chievo

Marek Hamsik and Manolo Gabbiadini scored goals 15 minutes apart in the first half to propel Napoli to their fourth win of the season — to go with a pair of draws — and retain their place as the last remaining unbeaten side in the league. Napoli sit a point back of Juve for the league lead, and four points clear of everyone else alraedy. It’ll be a two-horse race for the title, then.

 

Sunday’s La Liga schedule

Torino vs. Roma — 6:30 a.m. ET
Genoa vs. Pescara — 9 a.m. ET
Inter Milan vs. Bologna — 9 a.m. ET
Lazio vs. Empoli — 9 a.m. ET
Sassuolo vs. Udinese — 9 a.m. ET
Fiorentina vs. AC Milan — 2:45 p.m. ET

PL Sunday preview: West Ham, desperate to end skid, host Southampton

LONDON, ENGLAND - SEPTEMBER 21:  Dimitri Payet of West Ham United celebrates scoring his sides first goal during the  EFL Cup Third Round match between West Ham United and Accrington Stanley at the London Stadium on September 21, 2016 in London, England.  (Photo by Clive Rose/Getty Images)
Photo by Clive Rose/Getty Images
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The 2016-17 Premier League season wasn’t supposed to be like for West Ham United. After moving into their new home, the repurposed Olympic Stadium in London, this year was meant to be about building on top of last season’s seventh-place finish, which saw them in the top-four race until the final days of the campaign.

[ MORE: All of PST’s PL coverage ]

Fast forward four months, and Slaven Bilic‘s men have just one win from five games this season and find themselves 18th in the league table heading into Sunday’s clash with Southampton (Watch live, 11 a.m. ET, on NBCSN and online via NBCSports.com). Home form (one win, one loss) has only been slightly better for the Hammers’ form away from home, where they’re 0-for-3 thus far. Michail Antonio has five goals this season, joint-top in the PL, all of which have been scored via headers.

Early-season fortunes have been only marginally better for Saints, having won five points from their first five games of the season. Manager Claude Puel got his first PL victory last weekend, though, over Swansea City, as his side notched its first clean sheet of the season.

[ MORE: Saturday roundup — Arsenal thrash Chelsea; City, Liverpool win big ]

Following another summer of key departures in the transfer market (Sadio Mane, Victor Wanyama and Graziano Pelle), one can’t help but wonder how many more times the south coast can reload at the top of its squad without a noticeable falling-off, even if for just one season. Through five games, Saints have scored just four goals, including one own goal — Charlie Austin, Nathan Redmond and Jay Rodriguez the scorers. European qualification looks a long way off from 15th place, where they currently stand, and even farther off from Saints’ early-season performances.

INJURIES: West Ham OUT: Andre Ayew (thigh), Andy Carroll (knee), Diafra Sakho (back), Aaron Cresswell (knee) | Southampton OUT: Sofiane Boufal (knee)