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.

MLS Playoff bracket, dates set: Chicago, Vancouver host Tues.

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Major League Soccer’s playoff bracket is set. Our staff predictions are coming Tuesday before the first round match-ups, but here’s what we’ll be watching…

[ MORE: Mbappe named Golden Boy ]

The chase begins with Chicago and the Red Bulls, and San Jose heading to Vancouver. The Quakes drew the ‘Caps just over a week ago, on Oct. 15.

First round
(E3) Chicago vs. (E6) New York Red Bulls — 8:30 p.m. ET Tuesday
(W3) Vancouver vs. (W6) San Jose — 10:30 p.m. ET Tuesday
(E4) Atlanta vs. (E5) Columbus — 7 p.m. ET Wednesday
(W4) Houston vs. (W5) Sporting KC — 9:30 p.m. ET Wednesday

Conference semifinals
(W1) Portland vs.  San Jose, Houston, or Sporting KC
(W2) Seattle vs. Houston, Sporting KC, or Vancouver
(E1) Toronto vs. New York Red Bulls, Atlanta, or Columbus
(E2) New York City vs. Atlanta, Columbus, or Chicago

Conference finals
Eastern Conference — Nov. 21 and Nov. 28 or 29
Western Conference — Nov. 21 and Nov. 30

MLS Cup Final
At finalist with best record — 4 p.m. ET Dec. 9

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Who will replace Koeman at Everton?

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Where will Everton turn in search of their next manager?

U23s coach David Unsworth is the front-runner to take over, according to several betting sites — not that we’d partake in such madness — and the 44-year-old boasts 312 career appaearances for the Toffees.

[ MORE: Everton sacks Ronald Koeman ]

As for who else could be in frame for the gig, there are names (quite) familiar and new.

David Moyes — This one is an eyebrow-raiser, as Moyes has had little if any success since leaving Everton and ended his time at Sunderland with a sexist takedown of a journalist. But the 54-year-old Scot spent more than 11 years at Everton before leaving for Manchester United, and it’s not like the Toffees wanted him to skip town. He was thrice League Manager of the Year at Goodison Park.

Sean Dyche — The Burnley boss has overachieved time and again at Turf Moor, and the Clarets are one of the smallest outfits the Premier League has ever seen. A move to Everton could be a big and safe enough step to warrant his affection.

Carlo Ancelotti — He’s said he’s not returning to a manager’s seat this season, but the Italian may relish the chance to take a skillful team and organize it into its rightful potential. And we think he’s do a magnificent job.

Chris Coleman — He’s waffled on staying in his position at Wales, and the club’s absence from this summer’s World Cup must have him eyeing the club scene. He’s hasn’t led a club since 2012, having led AEL, Coventry City, Real Sociedad, and Fulham.

Phil Neville — The Manchester United and Everton playing legend doesn’t have first chair experience, but may be able to rally the troops. His latest stint was as an assistant in brother Gary’s tough, short campaign at Valencia.

Although… his recent prediction record isn’t hot.

Longshots: Mikel Arteta, Luis Enrique, Eddie Howe, Thomas Tuchel, Sam Allardyce, Manuel Pellegrini, Frank De Boer.

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Three seriously injured, 120 detained in Bruges hooligan riot

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BRUSSELS (AP) Authorities are investigating a hooligan riot which seriously injured three people and forced Brugge police to detain 120 following the match between Club Brugge and Antwerp.

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Local police chief Dirk Van Nuffel says one policeman was among the seriously wounded as authorities sought to contain a brawl between Belgian fans reinforced by others who had come from the Netherlands.

By Monday morning all were released but investigators were still seeking to see who was at the core of the fighting. Van Nuffel says such hooligan fighting “hadn’t been seen for years.”

Everton fires Ronald Koeman

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A 5-2 home loss versus Arsenal sent Everton into the Premier League drop zone, and that’s apparently a bridge too far for the Toffees when it comes to their managerial position.

Ronald Koeman is out at Goodison Park.

[ MORE: Who will replace him? ]

Everton sits 18th in the Premier League with eight points, it’s minus-11 goal differential second-worst in the top flight. Its 18 goals conceded are third-worst, and only three clubs have scored fewer goals than its seven.

The Toffees won two rounds in the Europa League, beating Ružomberok and Hajduk Split, but have lost to Atalanta and Lyon while drawing Apollon Limassol in Group E play.

Everton faces Chelsea in League Cup play on Wednesday before a critical early season match at Leicester City on Sunday.

[ MORE: Mbappe named Golden Boy ]

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