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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.

Arsene Wenger confirms deals for Mustafi and Perez are complete

GETAFE, SPAIN - APRIL 24:  Shkodran Mustafi of Valencia applauds fans after Valencia drew 2-2 with Getafe CF during the La Liga match between Getafe CF and Valencia CF at Coliseum Alfonso Perez on April 24, 2016 in Getafe, Spain.  (Photo by Denis Doyle/Getty Images)
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Arsenal has completed a pair of big-money deals with the transfer windows closing down,.

Manager Arsene Wenger confirmed that the club has finished the transfers of Shkodran Mustafi and Lucas Perez, two players they have long been linked with. He also confirmed the club was unlikely to sign any other players, unless new opportunities cropped up before the window shuts on Wednesday.

“We have bought two players, Mustafi and Perez. We had to work very hard to get signings done,” Wenger said. “We have no plans for anyone else now.”

Mustafi fills the most pressing need, helping patch up a back line ravaged by injuries. He is set to sign a five-year deal, according to the BBC and other reports. The fee is a reported $46 million.

Perez, a 27-year-old Spaniard, also fills a heavy need up front. With just Olivier Giroud and Chuba Akpom as the only healthy strikers available to the Gunners, Perez will help fill a gap. Perez was purchased for a reported $22 million, triggering the player’s release clause.

It’s unclear how soon the players will be available to play for Arsenal. The club next takes on Southampton after the international break.

Dortmund, Wolfsburg, Gladbach all win in Bundesliga openers

LIVERPOOL, ENGLAND - APRIL 14:  Pierre-Emerick Aubameyang of Borussia Dortmund is challenged by Alberto Moreno of Liverpool during the UEFA Europa League quarter final, second leg match between Liverpool and Borussia Dortmund at Anfield on April 14, 2016 in Liverpool, United Kingdom.  (Photo by Clive Brunskill/Getty Images)
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The Bundesliga officially opened Friday with Bayern Munich’s 6-0 demolition of Werder Bremen, but the rest of the league got under way Saturday, and it was business as usual.

Borussia Dortmund cruised with a 2-1 win over FC Mainz at Westfalenstadion behind a brace from main man Pierre-Emerick Aubameyang. The first came early in the 17th minute, a headed goal at the far post on the end of a beautiful ball from Andre Schurrle. The second on a penalty in the 89th minute after Schurrle was fouled by Karim Onisiwo. Aubameyang started last season with 13 goals in the team’s first 10 games, and he’s begun this year’s campaign on the same foot.

Wolfsburg worked its way to a 2-0 win on the road at Augsburg with a pair of impressive goals. Daniel Didavi bagged an incredible strike from a seated position in the 35th minute. After being knocked to the ground near the penalty area, the ball fell in the lap of the 26-year-old, and he spun around, looping the ball into the top corner.

The second was a late free-kick from Ricardo Rodriguez to double the lead.

Borussia Monchengladbach won a thriller at Borussia-Park 2-1 thanks to an 85th minute winner from Lars Stindl. The 28-year-old stayed just onside and beat Tin Jedvaj to the ball, slotting it in five minutes from time for all three points. Goals from Andre Hahn and substitute Joel Pohjanpalo had cancelled each other out. Fabian Johnson entered the game in the 61st minute.

Elsewhere, Timmy Chandler and Eintracht Frankfurt held serve at home with a 1-0 win over Schalke. Alex Maier scored the only goal in the 13th minute, and while he had a later penalty saved, The Eagles held their opponents scoreless the rest of the way. Chandler came on as a 56th minute substitute and helped keep the clean sheet.

Ingolstadt pulled out a 1-1 draw on the road at Hamburg thanks to a 76th minute equalizer from Lukas Hinterseer. Marcel Reese and Anthony Modeste gave Cologne a 2-0 home win over Darmstadt.

Premier League Saturday Roundup: Chelsea, Arsenal cruise, United snatches three points

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New managers have quickly brought the attention back to the Premier League’s traditional powerhouses, but one newcomer continues to impress in its return to top-flight football.

Hull City couldn’t pull out a draw against unbeaten PL favorites Manchester United, but the Tigers still looked impressive at times. Meanwhile, Chelsea, Leicester and Arsenal all won on the day, with the Blues keeping their winning ways up as well.

 

Hull City 0-0 Manchester United – RECAP

The points were surely going to be split between two of the better sides during the opening month of the season, but Marcus Rashford stole all three out from under Hull City. Despite a clever defensive effort from the Tigers, United remained unbeaten through three games after the second-half substitute smashed home Wayne Rooney‘s cross in the 92nd minute of play.

Chelsea 3-0 Burnley – RECAP

It was easily Chelsea’s best performance of the young season, and Eden Hazard looks to be back to his old ways after kicking off the day with a goal. The Clarets were held throughout the match at Stamford Bridge, limited to zero shots on target.

Tottenham 1-1 Liverpool — RECAP

Philippe Coutinho continues to present challenges for opposing defenses but luckily for Spurs the Brazilian was off with his finishing on the day. A James Milner penalty kick gave Liverpool the lead at White Hart Lane before Danny Rose leveled things up for the home side. Spurs remain unbeaten in their start to the new campaign but like many other PL sides, Mauricio Pochettino‘s men are still fine-tuning in the early portion of the season.

Watford 1-3 Arsenal – RECAP

A brutal schedule to open the season forced the Gunners to wait three weeks to find their opening win, but Saturday’s performance was a reminder of just how dangerous Arsene Wenger‘s group can be when firing on all cylinders. Alexis Sanchez looked like a menace from the opening kickoff, working his way into dangerous areas on the field and troubling the Watford backline.

Photo by Michael Regan/Getty Images

 

Leicester 2-1 Swansea City RECAP

The Foxes don’t look dominating like they were a season ago, but the most important thing about Saturday’s performance was that they won. Jamie Vardy got back on track with a much needed finish off of a routine long ball, before captain Wes Morgan powered home a close-range strike.

Crystal Palace 1-1 Bournemouth – RECAP

It looked as though Josh King‘s first-half finish would be enough for Bournemouth to earn its first win of the season, but Scott Dann‘s late effort ensured that Palace would take a share of the points at home. Neither side looked dominant after the opener from the visitors, but it was a valiant effort from Alan Pardew‘s side to pick up a draw.

Southampton 1-1 SunderlandRECAP

Chances were limited until the latter stages of the match but some clever play from Jermain Defoe to earn a penalty kick handed the Black Cats the lead with 10 minutes to play before the home side equalized in the dying minutes. Jay Rodriguez was the savior for Southampton, after scoring with five minutes to play for the Saints.

Everton 1-0 Stoke City – RECAP

The Toffees have quietly gone about their business this season but Ronald Koeman‘s side have taken seven out of nine points in their first three matches. Leighton Baines‘ penalty kick secured the team’s second win of the new PL season on Saturday, and Everton will be certainly pleased with the start.

Hull City 0-1 Manchester United: Rashford strikes late on the road

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  • Rashford plays hero after entering as substitute
  • Jakupovic makes seven saves in losing effort
  • Hull held to two shots on target
  • United remains unbeaten in first 3 matches

Hull City did just about everything right to earn a draw on Saturday, but Marcus Rashford decided to flip the script in the dying minutes.

Manchester United came away with a 1-0 victory at the KC Stadium after the second-half subsitute smashed home Wayne Rooney‘s cross in the 92nd minute.

Robert Snodgrass nearly handed Hull the lead after 25 minutes when the midfielder’s free kick narrowly missed wide of David De Gea‘s net. The Spanish goalkeeper was easily beaten by the shot, but United dodged a bullet as he watched the attempt go off target.

Chances were aplenty for United throughout the match, including the first half, which saw the Red Devils’ claims for a handball inside the penalty area denied.

The Red Devils found another chance to break the deadlock on the stroke of halftime but Zlatan Ibrahimovic couldn’t find the back of the net. The Swedish striker appeared to be offsides on Wayne Rooney’s free kick but Hull survived the sequence unscathed.

It always seemed like United would find a breakthrough, despite Hull’s best defensive efforts, and Rashford’s late finish ensured the Red Devils would remain unbeaten to start the 2016/17 season.