New York City FC already being drawn into Manchester City’s Financial Fair Play drama

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The potential for creative accounting between Manchester City and the club’s new teams in North America and Australia looked like an interesting Financial Fair Play (FFP) loophole, but with UEFA already looking at the relationship between the Citizens and its offshore subsidiaries with skepticism, that loophole may be smaller than originally thought. With New York City FC still 10 months from playing its first competitive game, the 2015 Major League Soccer expansion team is being drawn into its parent team’s FFP drama, with UEFA apparently scoffing at intellectual property licensing agreements between the two clubs.

Word of the scrutiny comes from The Guardian, whose Tuesday reporting indicating Manchester City was ready to fight UEFA sanctions set to be imposed or overspending. City’s case for compliance hinges in part on the legitimacy of some of its partner deals, three of which were identified as potentially specious:

Uefa’s accountants are believed to have concluded that Manchester City’s £350m 10-year deal with Abu Dhabi’s national airline Etihad and a series of licensing deals have been significantly overvalued.

… Manchester City said it had sold players’ image rights for £24.5m to a separate company and raised £22.45m from licensing intellectual property to “third parties” – widely believed to be new City franchises in New York and Melbourne.

The mere existence of a deal between Manchester City and its new clubs isn’t the problem. UEFA, however, will flag any deal that appears to be out of line with a reasonable market expectation. If the deal doesn’t pass their scrutiny, the income won’t count toward Financial Fair Play.

The term “intellectual property” is so broad, it screams potential abuse. Manchester City can send a business operations manual back stateside with Jason Kreis, value it at whatever they want, and write it off. Ultimately, no money goes outside the team’s bigger, multi-club umbrella, but in terms of the more limited UEFA portion of that picture, City can play its shell game and try to comply. Only now, it looks like UEFA’s Club Financial Control Body (CFCB) is going to take a long, hard look at the shells, making sure nothing slips from the table.

Regardless, any notion that City won’t try to use its MLS and A-League franchises to help with FFP may soon be dispelled. Clubs are going to great lengths to find new ways to maximize their potential expenditures under the rules. For some that means new commercial efforts in North American and Asia. For others, that means placing, developing, and selling increasing numbers of players. For Manchester City, that means teams in North American and Australia – teams they can not only use to loan out contracts but also do more creative things, like sell intellectual property.

 

Day Four: All the action from the U20 World Cup

Hong Hae-in/Yonhap via AP
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South Korea and Venezuela clinched berths in the knockout rounds of the U-20 World Cup on Tuesday, while Germany and Argentina have surprising work to do after two matches in South Korea.

[ MORE: Allardyce steps down at Palace ]

South Korea 2-1 Argentina

Barcelona B man Lee Seung-woo helped South Korea take a 2-0 lead, then hold on for the win and group lead over England.

England 1-1 Guinea

Chelsea youngster Fikayo Tomori scored a wild long range own goal to cost England the three points, but the Blues are still well-positioned to advance out of the group stage. Bournemouth midfielder Lewis Cook scored for England, and it was a beaut.

Venezuela 7-0 Vanuatu

Seven different Venezuelans have scored through a pair of shutout wins, with Caracas’ Sergio Cordova the only one to bag a pair.

Mexico 0-0 Germany

Germany has just one point through two matches, thanks largely to Pachuca’s Abraham Romero’s seven saves. Mexico was outshot 12-6.

Porto, Watford, Hull? Marco Silva in demand

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Marco Silva is one of the hottest properties in management, months after eliciting cries of “Who?” following his appointment at Hull City.

While those cries may have been a tiny bit myopic given his time at Sporting CP and Olympiacos, the 39-year-old is now visible to the world despite Hull’s relegation.

[ MORE: Real Madrid nabs $50m teen ]

Silva will be back in England to meet with Hull on Wednesday, but a clause in his contract that said he could leave if the club was relegated gives the Tigers very little hope.

Rumors have him wanted at Watford, and he’s also been linked with a number of other jobs including Southampton (should the club part ways with Claude Puel).

However, the former right back is also reportedly a target of one of the biggest clubs in his home country: Champions League side Porto.

UEFA Europa League Final preview: Manchester United vs. Ajax

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Jose Mourinho’s big European gamble takes center stage on Wednesday in Sweden, when Manchester United attempts to topple young Ajax in the UEFA Europa League Final.

United’s chances for UEFA Champions League qualification, a magnificent opportunity, are overshadowed by the pall cast over Manchester by sinister terrorist attacks at a pop concert that killed and injured many on Monday night.

Alas, there’s soccer to be played, and Mourinho is looking to make it a trio of shiny items in his first year on the job. United beat Leicester City for the Community Shield, then topped Southampton in the EFL Cup Final en route to Sweden.

United’s well-documented dearth of healthy defenders will march out one more time on Wednesday, with Chris Smalling and Phil Jones tasked with manning the center of the back line. Expect Antonio Valencia and Matteo Darmian out wide.

[ MORE: Full 2016-17 season reviews

Despite the injury to Zlatan Ibrahimovic, Mourinho’s attack is going to give Ajax fits. Marcus Rashford has been next level for most of the second half of the season, and United will also likely feature Henrikh Mkhitaryan and Paul Pogba atop Ander Herrera.

If someone is going to break United down, it could be midfield wizards Davy Klaassen and Lasse Schone. The creative middle men have a variety of options to find with the ball, including on-loan Chelsea man Bertrand Traore and Danish teenager Kasper Dolberg.

But how will they deal with United’s attack? Sure Ajax has stopped Lyon, Schalke, Copenhagen, and Legia Warsaw, but United and Mourinho? That’s another challenge for Peter Bosz and his men.

Ajax won the 1992 UEFA Cup, and this is United’s first ever trip to this particular final. The Red Devils are heavy favorites, and we expect United to prevail. Don’t sleep on Juan Mata heroics. Call it 3-1.

Allardyce resigns, opening up intriguing vacancy at Palace

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Sam Allardyce is walking away on top outside the relegation zone.

The veteran Premier League manager, 62, resigned his post as Crystal Palace on Tuesday, weeks after leading another team to safety.

The move ends a tumultuous eight months for Allardyce, who was fired as England manager after an undercover sting exposed unethical dealings with agents.

[ MORE: Full 2016-17 season reviews

It also comes about an hour after somebody wrote that Crystal Palace should move on from Allardyce. What a jerk, that somebody.

Rarely at a loss for words, here’s Big Sam from cpfc.co.uk:

I want to be able to savour life while I’m still relatively young and when I’m still relatively healthy enough to do all the things I want to do, like travel, spend more time with my family and grandchildren without the huge pressure that comes with being a football manager.

This is the right time for me. I have no ambitions to take another job, I simply want to be able to enjoy all the things you cannot really enjoy with the 24/7 demands of managing any football club, let alone one in the Premier League.”

All kidding aside — and I’m far from a Big Sam fan — congrats to the man on walking away to enjoy the finer things in life. He had a heck of a run, and we’ll see how long he can resist being away from the fray. Cheers, Sam.