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


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.

How can Man United qualify for last 16 of Champions League?

Wayne Rooney, Manchester United FC

Heading into the their final UEFA Champions League Group B game, Manchester United hold their destiny in their own hands, but any slip-up could mean it’s Europa League on Thursday nights for Louis Van Gaal‘s men.

[ MORE: Champions League standings ]

The Red Devils would have advanced to the knockout stage with a victory over third-place PSV Eindhoven on Wednesday, but slumped to an ugly 0-0 draw instead.

[ MORE: Three things we learned from Man United 0-0 PSV ]

So, here’s all of the scenarios for the final matchday of the group stage, away to Wolfsburg, in which United would advance to the round of 16 advance:

  • A Man United win will see Man United finish top of Group B
  • A Man United draw, coupled with a PSV draw or loss (vs. CSKA Moscow), will see Man United finish second in Group B
  • A Man United draw, coupled with a PSV victory, will see Man United finish third in Group B
  • A Man United loss, coupled with a PSV loss, will see Man United finish second in Group B
  • A Man United loss by more than one goal, coupled with a PSV draw, would see Man United finish third in Group B
  • A Man United loss, coupled with a PSV win, would see Man United finish third in Group B

[ MORE: Champions League schedule

There are your scenarios for Man United as it’s pretty simple to break it down: Win, and they go through. Fail to win, and their fate is completely in the hands of PSV.

VIDEO: Can Leicester stun the world? Man United title favorites?

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The Foxes are top of the Premier League and are led by a surging Jamie Vardy but how long can they keep shocking the world?

With six tough games coming up between now and the start of 2016, Claudio Ranieri‘s men will be pushed to their limit but so far this season they’ve been sensational and Vardy has equaled Manchester United legend Ruud van Nistelrooy’s record of scoring in 10-straight PL games.

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Can he make it 11 in a row on Saturday (Watch live, 12:30 p.m. ET on NBC and online via Live Extra) when United visit the King Power Stadium? As for the Red Devils, they sit in second place and are just one point behind the flying Foxes’. Louis Van Gaal‘s men have certainly flown under the radar so far and our churning out wins at an impressive rate.

Jenna Corrado and I discuss that and more in the latest edition of PST Extra. Click play on the video above to see our chat in full.

Men in Blazers podcast: The Leicester fairytale goes on

Men In Blazers - Sept. 22
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Rog and Davo revel in another chapter of the Leicester City fairytale, break down Liverpool’s shock dismantling of Manchester City and discuss Arsenal’s slip against West Brom.

Listen to the latest pod by clicking play below.

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Pellegrini updates status of Joe Hart’s hamstring injury

Joe Hart, Manchester City FC
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Joe Hart was forced to leave Manchester City’s 1-0 defeat to Juventus in UEFA Champions League play on Wednesday due to a hamstring injury, which he seemed to incur while making a spectacular one-on-one kick-save late in the second half.

[ FOLLOW: All of PST’s PL coverage ]

Man City manager Manuel Pellegrini confirmed after the game that Hart’s injury is indeed a hamstring issue, and went on to say that he would need further tests once the team arrives back in Manchester to determine the severity and how long, if at all, City and England’s no. 1 would be out of action.

Man City, currently third in the Premier League on 26 points, will host eighth-place Southampton at the Etihad Stadium on Saturday (Watch live at 10 a.m. ET on NBCSN and online via Live Extra).