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

Leave a comment

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.

 

Hazard and Co. set up NASL club in San Diego

Getty Images
Leave a comment

Soccer in SoCal continues to boom.

[ MORE: Sanchez, Aguero swap deal?

The North American Soccer League (NASL) announced Monday that San Diego will have a second-tier team for the 2018 season as professional soccer returns to San Diego County.

In a statement from the NASL it was revealed that San Diego’s new expansion franchise is owned by star players Eden Hazard, Yohan Cabaye, Demba Ba and Moussa Sow, as well as executives with experience of the San Diego market.

Hazard, a star for Chelsea and Belgium, revealed exactly why he believes San Diego deserves a soccer team.

“San Diego is a beautiful place and the love and passion that the people have for soccer made this an easy choice for us,” Hazard said. “My friends and I are honored to turn this dream into a reality and we can’t wait to get started and win some games.”

The quartet do not have a name, logo or colors for the team, but that is expected to be announced in the coming months. Bob Watkins will serve as the club president and Ricardo Campos, former technical director for thew New York Red Bulls, will serve in the front office alongside Katy Temple as the pieces are put in place for another new soccer team in California.

NASL will have 10 teams for the 2018 season with Orange County also joining the league that currently shares second-tier status with the much-larger USL which boasts 30 teams.

With Orange County and San Diego arriving in NASL in 2018, LAFC to join Major League Soccer in 2018 and a consortium led by former USMNT star Landon Donovan hoping for an MLS expansion team in San Diego in the years to come, soccer in SoCal is booming.

How involved Chelsea star Hazard, Crystal Palace midfielder Cabaye, Shanghai Shenhua striker Ba and Al-Ahli forward Sow get remains to be seen but they’ve obviously seen a gap in the market in San Diego.

Bakayoko to Chelsea, Matic to Man United close

Getty Images
Leave a comment

Two defensive midfielders will have new homes very soon.

[ MORE: Aguero, Alexis in swap deal? ]

Tiemoue Bakayoko, 22, is closing in on a move to Chelsea from AS Monaco as he is set to replace the outgoing Nemanja Matic who will link up with his former boss Jose Mourinho at Manchester United.

Multiple reports, including this one from the BBC, state the deal for Bakayoko is close to completion with Chelsea and Monaco agreeing the $41.8 million fee and the French midfielder is expected to be a Chelsea player in the next 48 hours.

As for Matic’s imminent arrival at Old Trafford, the Serbian destroyer, 28, will reportedly complete his move this week with the Guardian stating the clubs have agreed a price of around $50 million and wages of $197,000 per week have also been agreed between the player and United.

United badly needed a defensive reinforcement in central midfield and Matic (who has won two Premier League titles in three seasons since rejoining Chelsea in 2014) would fit the bill. Able to start attacks and possess the ball as well as a fine reader of the game who uses his lanky frame to intercept passes and sweep up in front of the defense, Matic would surely be the perfect foil for Ander Herrera in United’s engine room and they’d allow Paul Pogba to roam free.

As for Chelsea, there’s no doubt that losing Matic is a blow but Bakayoko is rated as one of the top defensive midfielders in Europe after excelling for French champions Monaco in Ligue 1 and the UEFA Champions League last season. He’s a more composed version of Victor Wanyama and alongside N'Golo Kante he’d provide Chelsea’s defense with a formidable shield. This is just the type of midfielder Antonio Conte loves.

Both United and Chelsea would considerably improve their central midfield areas with these additions.

Frank de Boer named new Crystal Palace manager

Getty Images
1 Comment

The Eagles have gone Dutch.

Crystal Palace appointed Frank de Boer as its new manager Monday, announcing the Dutch legend has signed a three-year deal at Selhurst Park.

De Boer, 47, previously won four consecutive Dutch titles in charge of Ajax from 2010-16 before a less successful spell in charge of Inter Milan last season as he lasted just three months (and just 14 matches) in charge of the Italian giants.

“I am thrilled to be appointed as manager of Crystal Palace Football Club. It is a great honor to take charge of such an historic club, a club that is known around the world for its hugely proud and passionate fan base,” De Boer said. “This role is a hugely exciting opportunity for me, and I cannot wait to get started in the Premier League with the players and staff here in south London.”

There’s no doubt De Boer’s playing career means he will demand the utmost respect from Palace’s players — he won five Dutch titles, a UEFA Champions League and Europa League at Ajax, a Spanish title at Barcelona and was capped 112 times by the Netherlands — but adapting to a new league may be difficult for the Dutchman, although he did spend time with Glasgow Rangers and had stops in Turkey and Qatar during his illustrious playing career. He’s no stranger to change.

Palace chairman Steve Parish revealed that De Boer’s arrival aligns with the ambitious plans for the club who also aim to develop their young players.

“We have undertaken a thorough interview process to ensure we are in a position to appoint a manager of the caliber and experience that Frank brings with him,” Parish said. “I am pleased to welcome him to Crystal Palace and I know he cannot wait to get started and prepare for our record breaking fifth season in the top flight.”

After Sam Allardyce announced his retirement at the end of the 2016-17 season after keeping Crystal Palace up in the Premier League, the Eagles have been searching for a new boss diligently. Parish is said to have favored former Hull boss Marco Silva to take charge of the south London club, but Silva opted for Watford.

Palace stretched out their managerial search with Mauricio Pellegrino, appointed by Southampton on Friday, also on their shortlist, but De Boer has now arrived to take charge of the ambitious London club.

With big money spent on the likes of Christian Benteke and Yohan Cabaye in recent seasons, the Eagles were supposed to be challenging for a top 10 finish. The past two seasons they’ve flirted with relegation under Alan Pardew and then Allardyce, with new American majority owners Josh Harris and David Blitzer yet to see the success they’d hoped for.

De Boer stated he would give every player at Palace a chance before making signings, but judging by the inconsistent displays by a squad largely built by Pardew and then patched up by Allardyce the Dutch coach will have a big job on his hands to turn the squad around and create a new identity for the Eagles.

He is a big name in the soccer world and Palace’s passionate fans will no doubt be excited by the prospect of De Boer bringing a new possession-based playing philosophy to Selhurst Park.

Alexis Sanchez, Sergio Aguero swap deal in place?

Getty Images
Leave a comment

A huge swap deal for two of the Premier League’s biggest stars is reportedly being discussed.

[ MORE: Mourinho’s father dies ]

The Daily Star reports that Alexis Sanchez and Sergio Aguero could involved in a swap deal between Arsenal and Manchester City this summer.

Per the report, the deal would be a straight-swap and when you think about it for a moment, it would be the perfect solution for almost everyone involved and with Aguero aged 29 and Sanchez 28, it’s a close to a perfect swap as you’ll find for both clubs.

The South American superstars are both in tough situations with their current teams, but this would also be a tough deal to get done.

Arsenal do not want to sell Sanchez, especially to a Premier League rival, but with the Chilean superstar having just 12 months left on his contract his transfer value is rapidly diminishing each week he doesn’t sign a new deal. And with Aguero dropped by Pep Guardiola on multiple occasions last season despite scoring 33 times in all competitions, the Argentine would get the chance to be the main man at Arsenal.

Everything should be on board with this, right?

Well, Aguero would have to sacrifice UEFA Champions League action for at least one season with Arsenal in the UEFA Europa League in 2017-18 which could throw a considerable spanner in the works of this rather outrageous deal. However, Arsenal would be getting one of the greatest finishers of his generation, and in Premier League history, which would mean they’d finally have the prolific forward they need to finish off the multiple gilt-edged chances per game they create.

Wenger went after Jamie Vardy last summer but failed and with Danny Welbeck, Olivier Giroud and Theo Walcott around, all three are far from prolific. Aguero would be one of the missing pieces of the jigsaw for Arsenal but both clubs would argue they’d want to keep their stars and add the other. The only way City would be able to add Sanchez is if they offer up Aguero.

Sanchez was signed by Guardiola at Barcelona and the Chilean would perfectly slot into City’s fluid front three alongside Gabriel Jesus, Leroy Sane and Raheem Sterling. Aguero didn’t fit that system well last season and despite Pep stating the Argentine striker would be at the club in 2017-18, you have to think he’d pick Alexis over Aguero.

Although this swap deal seems to suit almost everyone, it still seems incredibly far-fetched. That said, both Premier League clubs would save face in losing a star name and financially there would be no huge losses.

Hmmm. The more you think about it, the more this makes sense.