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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.

 

UCL FOLLOW LIVE: Lineups as Atleti looks to advance past Bayern

MADRID, SPAIN - APRIL 27:  UEFA  Champions League trophy is seen ahead of the UEFA Champions League semi final first leg match between Club Atletico de Madrid and FC Bayern Muenchen at Vincente Calderon on April 27, 2016 in Madrid, Spain.  (Photo by David Ramos/Getty Images)
Photo by David Ramos/Getty Images)
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Atletico Madrid heads into the Allianz Arena’s hornets’ nest with a 1-0 advantage and hopes for another UEFA Champions League final.

Diego Simeone’s La Liga powers will look to keep its advantage over Bayern Munich, in turn booting Pep Guardiola into Manchester without a UCL title in Germany.

To follow live, click here.

LINEUPS

Bayern Munich: Neuer; Alaba, Boateng, Martinez, Ribéry, Lewandowski, Costa, Alonso, Lahm, Vidal, Müller. Subs: Ulreich, Tasci, Thiago, Rafinha, Götze, Coman, Kimmich.

Atletico Madrid: Oblak, Juanfran, Godin, Gimenez, Luis; Gabi, Augusto, Koke, Saul; Griezmann, Torres. Subs: Moya, Savic, Lucas, Thomas, Carrasco, Correa, Vietto.

VOTE: What is the top moment from Leicester’s run to glory?

LEICESTER, ENGLAND - APRIL 17:  Leonardo Ulloa of Leicester City celebrates with team mates after scoring his team's second goal of the game from the penalty spot during the Barclays Premier League match between Leicester City and West Ham United at The King Power Stadium on April 17, 2016 in Leicester, England.  (Photo by Michael Regan/Getty Images)
Photo by Michael Regan/Getty Images
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What a season (and no, it isn’t over).

Leicester City is the Premier League’s champion, a 5000:1 odds defying winner which has danced through the imaginations of many of the world’s underdogs.

[ SPORTSWORLD: Nothing comparable to Leicester’s win ]

We know how they got here, but an interesting question is which moment will live in your memory when you’re reminded of Leicester’s run?

Game 5 — Dyer win Derby in stoppage

It had been a remarkable early season for Claudio Ranieri‘s troops when the Foxes came back from a 2-0 deficit against Midlands rivals Aston Villa, and substitute Nathan Dyer capped off the 3-2 win in style.

Game 14 — Vardy sets a Premier League record

Ruud van Nistelrooy taking a backseat to Jamie Vardy was unfathomable even a month beforehand, but Vardy’s goal gave him a Premier League record 11-straight matches with a goal (and all in one season). Not bad for the man deemed too old by a 2.Bundesliga team.

Game 25 — Blowout at the Etihad

Certainly many had this date circled as the beginning of a downturn for Leicester, but Riyad Mahrez dazzled while Robert Huth scored a pair of goals in a 3-1 ride past Manchester City on the road. It was on.

Game 27 — Ulloa starts earthquakes

Leicester looked destined to somehow find a draw from a dominant performance when Leonardo Ulloa lifted the Foxes to a late win over Norwich, causing mini earthquakes at the King Power Stadium.

Game 34 — Chaos at King Power

A game easily categorized in short, insane outbursts, or just the name Jon Moss

Vardy sent off for diving ?!? Penalty to West Ham for what?!? Penalty to Leicester for what?!?

2-2 final.

Fellaini, Huth charged after clashing during PL game

MANCHESTER, UNITED KINGDOM - MAY 01: Marouane Fellaini of Manchester United goes past Danny Drinkwater of Leicester City during the Barclays Premier League match between Manchester United and Leicester City at Old Trafford on May 1, 2016 in Manchester, England.  (Photo by Laurence Griffiths/Getty Images)
Photo by Laurence Griffiths/Getty Images
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LONDON (AP) The English Football Association has charged Manchester United midfielder Marouane Fellaini and Leicester defender Robert Huth with violent conduct after they clashed during a Premier League game at the weekend.

Fellaini reacted to getting his hair pulled by Huth by appearing to strike the defender with his elbow as they jostled at a set-piece during the 1-1 draw between the teams on Sunday.

[ MORE: Story of Leicester’s season, game-by-game ]

The incident wasn’t seen by the match officials but was caught on video. It will now be referred to a panel of former elite referees.

The charges were announced Tuesday. The FA said the players have until Wednesday to respond.

Ranieri says club won’t repeat as Premier League champions, will “continue to build”

during the Barclays Premier League match between Manchester United and Leicester City at Old Trafford on May 1, 2016 in Manchester, England.
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Claudio Ranieri knows there’s difficulty ahead for Leicester City, albeit on a relative scale.

The Foxes are Premier League champions after Spurs’ 2-2 draw with Chelsea on Friday, and the Leicester boss is already being asked about a repeat performance.

[ MORE: Ranieri thanks Chelsea | Fans react in Leicester ]

With UEFA Champions League play next year and what is sure to be a tempting transfer market, Ranieri is being pragmatic in his approach. He says they won’t win the PL next season.

From Sky Sports:

“We want to continue to build,” he told SSN HQ’s Rob Dorsett. “When I came here, the project was to build a very good foundation and slowly, slowly to grow up together in three to four years to fight for the Europa League and slowly come to fight for the Champions League.

“Now the season is out of our project but of course, the foundation is very solid. We know very well we have to fight for the position but we want to do our best. I’m positive and I want to fight.”

You’ll probably say he’s continuing a pattern of being sly — lowering sunglasses — like a fox, as Ranieri started 2015-16 wanting 40 points, then the Top Four, before finally admitting the title was an option.

You think he’s going to claim he’ll repeat? You can cue The Who, because Claudio… we won’t get fooled again.