Herbalife problem doesn’t look good for LA Galaxy, Major League Soccer

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Herbalife’s business model has always been a bit controversial. Late in 2012, billionaire investor Bill Ackman called their “multi-level marketing” model a pyramid scheme and proceeded to put his money where his mouth is. The Pershing Square hedge fund manager shorted the company’s stock with a $1 billion bet, contending the company was destined to go bust.

Yesterday was a big day for Ackman, with Herbalife stock closing down 7.4 percent after news the company is being investigated by the Federal Trade Commission. The term “pyramid scheme” is being thrown around.

Even if nothing comes of the investigation, this isn’t good news for Major League Soccer; or, more specifically, the LA Galaxy. The Cayman Islands-based company has been a long-time shirt sponsor of the four-time champions, with the partners’ latest 10-year, $44 million sponsorship deal only in its second year. But, as Bloomberg’s Kavitha Davidson explains, that sponsorship becomes a burden for both club and league if Herbalife’s perception goes in the tank:

This isn’t just any soccer club caught up in a potential fiscal fiasco – this is the face of the league. The Galaxy’s success has been a primary booster for the national and global MLS brand …

Herbalife is the official jersey sponsor of the Galaxy, who have several players on the list of the top-selling MLS jerseys. The partnership had only grown stronger in recent months, highlighted by the October launch of the “Be a Pro” Web series …

It would be a hard pill to swallow for both the Galaxy and MLS if these accusations ultimate prove to hold water.

That’s why the FTC’s involvement is so scary. Whereas Herbalife has always been surrounded by ifs, a federal investigation bolsters those hypotheticals.

Perhaps, as the company implies, the investigation could turn into a positive, allowing the brand to clear up any misconceptions about their model’s legality. Until then, though, both MLS and the Galaxy are stuck in the debate’s crossfire.

From Bloomberg:

“Herbalife welcomes the inquiry given the tremendous amount of misinformation in the marketplace,” the Cayman Islands-based company said today in a statement. “We are confident that Herbalife is in compliance with all applicable laws and regulations.”

In the mean time, the league’s most recognizable franchise has a problem literally written across its chests. Should Herbalife go away, a brand as strong as the Galaxy’s would surely be able to replace it. In the interim, though, MLS and one of its marquee franchises will have to ride it out.

Day Three: All the action from the U20 World Cup

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With the 2017 U-20 World Cup underway in South Korea, we can forgive you if you haven’t seen much of the action yet.

[ MORE: U-20 World Cup latest

Due to the time difference most of the games kicking off in the wee hours (if you’re on the East Coast of the U.S.), so we thought we’d give you a chance to catch up on what you might have missed while you were sleeping.

Click on the link above for all the latest news from the U-20 World Cup, while below are video highlights from Monday’s four games as Groups E and F were in action.


Group E – France 3-0 Honduras

Group E – New Zealand 0-0 Vietnam 

Group F – Ecuador 3-3 USA 

Group F – Saudi Arabia 0-2 Senegal

Transfer Rumor Roundup: Sanchez to Bayern; Lukaku to Chelsea

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The Alexis Sanchez to Bayern Munich links continue with the Arsenal forward having just one year left on his contract and now Arsenal out of the UEFA Champions League for next season.

[ MORE: Kroenke speaks out ]

Sanchez’s international teammate, and Bayern Munich midfielder, Arturo Vidal has added further fuel to that fire.

Vidal spoke to Spanish outlet Sport and revealed he has been asked about Sanchez by the Bayern hierarchy and he wants the Chilean star to swap the Premier League for the Bundesliga.

“He is doing great at Arsenal but I think he needs to take an extra step to fight amongst the best in the world and that is why he has to come to the best team in the world. He would do great here,” Vidal is quoted as saying.

Would Bayern be a good fit for Sanchez? It would certainly be the preferred choice for Arsenal if they did have to sell him this summer.

The Gunners would be reluctant to sell to any of their Premier League rivals, so this could suit everyone. Of course they wouldn’t want to lose the man who scored 24 PL goals and added 10 assists this season, but the reality is stark for the Gunners.

Sanchez would surely slot in seamlessly with Bayern’s fluid attacking front three and as the likes of Arjen Robben and Franck Ribery enter the twilight of their careers, Sanchez could be the main man in Bavaria for the next three to four years. This move would also provide Sanchez with a return to UCL action, something Arsenal can no longer offer him.


Just one day after the season came to a close Romelu Lukaku is being heavily linked with a return to Chelsea.

The London Evening Standard reports that Chelsea have put Lukaku, 24, at the top of their summer wishlist and ahead of Alvaro Morata.

Lukaku has two years left on his current Everton deal but has refused to sign a new contract and the Belgian international is being chased by several of Europe’s top clubs. His 25 goals this season meant he was the second-highest goalscorer in the PL and as reports about Diego Costa‘s leaving Chelsea for China this summer continue, Lukaku would be the perfect replacement.

Everton boss Ronald Koeman has admitted that the Belgian forward will leave to go on and become a star at a giant club but the Toffees were perhaps hoping it would be for the 2018-19 season.

As for Lukaku, he may feel like he has some unfinished business at Chelsea after being loaned out to West Brom and Everton after joining Chelsea in 2011 for a fee rising to $25 million. He played just 15 times for Chelsea and failed to score.

With his power, pace and aerial ability, you have to think Lukaku would be perfect for Chelsea’s counterattacking style. That said, his hold-up play is the one thing holding him back and that’s where Costa excels.

Chelsea sold Lukaku to Everton in 2013 for $36 million and it is believed he would cost Chelsea over double that amount to buy him back. The Blues have bought back players they sold in the past with Nemanja Matic and David Luiz prime examples, but this deal to bring back Lukaku would be a huge admittance by Chelsea that they got this one wrong.

John Terry explains 26th minute exit; winning bets revealed

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John Terry was subbed out of his 717th and final appearance for Chelsea in the 26th minute of their 5-1 victory against Sunderland on Sunday.

[ MORE: Chelsea hungry for more glory ]

Chelsea’s legendary captain called an end to his 22-year career with the Blues and the 36-year-old is yet to announce if he will retire from the game this summer or continuing playing elsewhere.

There is plenty of controversy surrounding how his final moments on the pitch for Chelsea played out.

Despite coming off in the 26th minute (his shirt number is 26) with a guard of honor from his teammates, applause from the Sunderland players and a huge ovation from the supporters at Stamford Bridge, many believe this wasn’t the right way to do things.

Speaking to Sky Sports after the game, Terry revealed that he and Conte struck an agreement before the match and that it was his idea.

“I kind of negotiated with the manager to play 26 minutes and come off,” Terry said. “I think he wanted to get the boys that didn’t play on Monday night against Watford and give them a run-out. It was a compromise between the two of us.”

Following the planned farewell it has also been revealed that several UK bookmakers have paid out on bets on Terry being subbed out in the 26th minute. Odds of 100-1 were being offered on Terry coming off in the 26th minute and although it was technically the 28th minute by the time he walked off, bookmakers in the UK were still paying out.

As things stand the bets placed on Terry’s early exit will not be investigated by the soccer authorities.

The planned nature of this farewell has not sat well with plenty of soccer purists and those suggesting that Terry wanted to milk his farewell.

I understand those arguments but with Terry able to captain Chelsea for one final time, the man who led the Blues to five Premier League titles as skipper and also won 15 major trophies at the club should be the one to decide how he bows out.

Conte was fine for it as he got to rest Gary Cahill for nearly 30 minutes ahead of the FA Cup final. Chelsea’s fans loved it. Terry’s teammates loved it. And so did Terry.

He said farewell once and for all and this final game was all about two things for Chelsea: lifting the PL trophy at the end, and Terry saying goodbye. The result didn’t matter and no matter how you feel about Terry’s planned farewell, you have to accept it happened.

Stan Kroenke releases statement on Arsenal

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Arsenal’s majority shareholder Stan Kroenke has issued a statement regarding his future ownership of the club.

[ MORE: Watch full PL match replays

The American billionaire was at the center of fan unrest on Sunday as Arsenal finished fifth in the Premier League, missing out on a top four finish for the first time in 21 seasons under Arsene Wenger.

Kroenke’s fellow Arsenal shareholder Alisher Usmanov (he owns 30 percent of the shares) last week offered over $1.3 billion for Kroenke’s 67 percent stake in the Gunners but Kroenke turned the bid down.

Now the company which also owns the LA Rams, Colorado Rapids, Colorado Avalanche and Denver Nuggets, Kroenke Sports and Entertainment, have issued the following defiant statement.

“KSE UK, Inc notes the recent media speculation concerning its holding in Arsenal Holdings PLC and confirms that its shares are not, and never have been, for sale. KSE is a committed, long term investor in Arsenal and will remain so.”

That is about as definitive as it gets.

Kroenke will remain at Arsenal and until the situation regarding Wenger’s future, and that of star players Mesut Ozil and Alexis Sanchez is sorted out, fans will continue to vent their anger at the American businessman.

With the Gunners preparing for Europa League action next season, the only thing which could save Kroenke and Co. from more unrest over the summer is if Arsenal beat Chelsea in the FA Cup final on Saturday.

Even that would only provide momentary respite before fans, former players and everyone else begins to look for answers to the bigger-picture questions on where Arsenal are heading on Kroenke’s leadership.

What a mess.