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.

Everton loses Coleman to leg break on Ireland duty

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A horror tackle from Wales’ Neil Taylor snapped Seamus Coleman‘s leg in gruesome fashion on Friday.

Taylor was given a red card, and Coleman was stretched off the pitch in the 0-0 draw.

[ MORE: UEFA World Cup qualifying wrap ]

Ireland manager Martin O’Neill confirmed what was apparent from the match replay: the Everton man has a broken ankle.

“It’s a bad break. He’s a fantastic player and character. It’s a major blow for the lad, his club and us.

“Apparently it wasn’t the best challenge in the world – I haven’t seen it. He’s gone to hospital. I saw his reaction immediately and it didn’t look good. He was holding is leg up and it didn’t look good.

This is not only awful for the player, but causes stress as Everton mounts its assault on the Top Six. The right back has also manned right mid for Ronald Koeman this season, and has four goals and four assists in 26 Premier League matches.

Mason Holgate, Muhamed Besic, and Phil Jagielka have played some right back for Everton, while Ramiro Funes Mori has deputized at left back.

Emotional McClean speaks after honoring deceased teammate (video)

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After wearing the No. 5 to honor of his recently deceased teammate, James McClean met with the media following Ireland’s 0-0 draw with Wales in World Cup qualifying on Friday.

McClean played with Ryan McBride at Derry City, and left Ireland camp to attend funeral services after McBride died following a match last weekend. McClean was also mourning the death of friend and Sinn Féin politician Martin McGuinness.

Throw in a gruesome injury to teammate Seamus Coleman and, in McClean’s words, “I’ve had better weeks”.

[ MORE: UEFA World Cup qualifying wrap ]

McClean, 27, spoke with evident emotion following a Man of the Match turn in Ireland’s draw (video below).

“It was a really tough week. The lads here have been great. They rallied around me. The manager was first class as well. He let me go up to Derry there on Tuesday and say my goodbyes. It’s been a tough week with Seamus injury as well. It’d been nice if we had have got a win and ended on a positive note, but it wasn’t to be.

“(McBride and McGuinness) were going through my thoughts today. I wanted to put in a performance that would make them proud. In the national anthem and the moment’s applause, holding my wee girl, it was emotional but I tried to put that in the right way into my performance. Hopefully tonight I’ve done the lads proud.”

World Cup qualifiers: Wales in trouble; Buffon hits 1000

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Friday’s matches mark the midway point of the main round of qualifying in UEFA, and the tables remain tight near the top of Groups D and G.

[ MORE: Smalling hurt, Gibson called up ]

Group I, however, is seeing some distance between first and second thanks to Croatia’s result versus Ukraine.

Republic of Ireland 0-0 Wales

Neil Taylor was sent off in the 69th minute for Wales, whose World Cup hopes are in trouble.

Seamus Coleman was stretchered off after the tackle, with a scary-looking injury that will leave Everton fans sick in more ways than one. Coleman’s leg was broken, and left dangling by the challenge.

Ireland couldn’t take advantage of the sending off, and failed in a bid to overtake Serbia for first in Group D. The Irish trail on goal differential, and will host Serbia on Sept. 5.

But Wales will rue the result more, remaining four points back of second-place Ireland. Chris Coleman’s side drops a point behind Austria as well, and will not have Taylor or Gareth Bale (card accumulation) in its next match. That comes against leaders Serbia.

Italy 2-0 Albania

Daniele De Rossi scored a 12th minute penalty kick won by Andrea Belotti, and Ciro Immobile scored late to provided the goals in Gianluigi Buffon’s 1000th appearance for club and country. Fittingly, it ended in a clean sheet. The match was briefly delayed after flares were thrown onto the field.

Spain 4-1 Israel

David Silva, Vitolo, and Diego Costa stakes the Spaniards to a three-goal lead, with Lior Refaelov ruining David De Gea‘s clean sheet with 11 minutes to play. Isco scored the match’s final goal.

Spain remains atop Group G on goal differential, eight better than second place Italy. Israel is four points behind both.

Croatia 1-0 Ukraine

Fiorentina’s Nikola Kalinic’s 38th minute goal was enough for the hosts, and Croatia is now five points clear of Ukraine and three above Iceland midway through qualifying.

Elsewhere
Austria 2-0 Moldova — RB Leipzig’s Sabitzer nabs winner
Liechtenstein 0-3 Macedonia — Ilija Nestorovski bags brace
Kosovo 1-2 Iceland — Sigurdsson PK the match winner
Georgia 1-3 Serbia — Mitrovic, Tadic lead the way
Turkey 2-0 Finland — Brace for Cenk Tosun

Boro’s Gibson called to England after injury to Man Utd’s Smalling

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Scoring goals has been the biggest problem for Middlesbrough in its return to the Premier League, and that overshadows how well the Northeast club has defended its own goal.

Ben Gibson has been a huge part of that, and now he’ll earn the chance to represent his nation thanks to an injury to Chris Smalling. Gibson will join England ahead of Sunday’s home World Cup qualifier against Lithuania.

[ MORE: Podolski leads Germany past England ]

Gibson has far and away been Boro’s best player, leading the side in blocked shots and clearances. The blocked shots total is tied for ninth in the Premier League, 11 behind current leader and new England teammate Michael Keane.

Smalling’s undisclosed injury is a bigger problem for Manchester United, which had already lost center back depth on England duty when Phil Jones was hurt.