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.

USMNT: Brooks out with hip strain; World Cup qualifiers loom

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John Brooks is out of Hertha Berlin’s lineup “for the time being” after scans revealed a hip strain suffered in this weekend’s win over Wolfsburg.

That’s all Hertha has said, and that makes it hard to imagine whether American fans should be a little concerned or very concerned ahead of the USMNT’s World Cup qualifiers against Mexico, and Trinidad and Tobago in early June.

Brooks was unavailable for two weeks with an adductor strain in September, missing a month before returning to the starting lineup.

The U.S. center back pool isn’t teeming after Brooks and Geoff Cameron. Matt Besler, Tim Ream, Omar Gonzalez, and Walker Zimmerman were called up for the last World Cup qualifiers, and Gonzalez struggled but is a Bruce Arena favorite from their time in L.A.

WATCH: Snazzy Sargent goal leads U.S. U-17s past Mexico

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Josh Sargent scored a pretty goal as the United States Soccer program had another banner day against Mexico.

Nearly two months to the day after the U.S. U-20 side beat Mexico for the first time in 31 years, the U.S. U-17 topped El Tri for the first time ever. That win snapped Mexico’s 25-match unbeaten streak.

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The goal is the first of Sargent’s two goals, as the 16-year-old latched onto a long diagonal ball and used his right foot and head to move the ball into position for a strong shot.

The U.S. clinches a spot in the next round of U-17 World Cup qualifying with one match remaining in group play.

Sargent is from St. Louis and plays with Scott Gallagher-Missouri. Former Philadelphia Union coach John Hackworth coaches the U.S. U-17s.

Heads of South American soccer sent $128M in bank transfers

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SANTIAGO, Chile (AP) The leaders of South America’s soccer confederation transferred $128.6 million between 2000 and 2015 to personal accounts, suspicious accounts, or unauthorized third-party accounts, according to an audit released Wednesday by Ernst & Young.

According to the audit presented to the annual CONMEBOL congress in the Chilean capital, the confederation’s former president Nicolas Leoz transferred $26.9 million to his personal accounts. Leoz was the president for 27 years until resigning in 2013 for what he said were health reasons.

The audit also found $58 million in payments “to third parties without adequate documentation,” payments of $33.3 million to “unidentified accounts,” and $10.4 million to “suspicious third-parties.”

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“We had said that we would have four pillars, and the first two pillars were clear accounts and accountability,” said Alejandro Dominguez, the president of CONMEBOL who commissioned the audit last year. “Today we are accountable to the leaders and the whole world of football.”

Leoz, 88, is one of three ex-presidents of CONMEBOL accused on corruption charges by the United States Department of Justice. He is in Paraguay fighting extradition to the United States.

The South American body has been plagued by corruption, which was exposed two years ago during the FIFA scandal. Leoz’s two successors, Eugenio Figueredo and Juan Angel Napout, were both arrested on corruption charges.

“I’m here, I’m the manager” – Moyes will not quit Sunderland

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This has been one horrible stretch for David Moyes.

The Sunderland manager probably thought he’d been through the worst once he left Real Sociedad, where he went 12-15-15.

But he’s managed just seven wins and seven draws in 38 matches in charge of the Black Cats — an 18 percent win mark. He’s also been charged for threatening to slap a female journalist.

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And after Wednesday, Moyes has lost both of his derby matches against Middlesbrough.

Sunderland is 12 points back of safety with five matches left. The odds the Black Cats are headed for the Championship are somewhere north of 99 percent, and fans are calling for his job.

Well, he isn’t quitting. From the BBC:

“No, I’m here, I’m the manager, you take it on the chin. … I’m a football supporter, I know what it’s like. You don’t like seeing your team lose.

“There is nobody who wants to win more than me. I am used to winning, I’m not used to losing and I don’t want to get used to it either.”