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.

 

LA FC continues active offseason with addition of Laurent Ciman

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It seems like Major League Soccer’s latest expansion team is taking a page out of Atlanta United’s playbook in its buildup to the 2018 season.

[ MORE: NYCFC provides stadium details for Belmont proposal ]

After selecting five players in Tuesday’s MLS Expansion Draft, Los Angeles FC announced that it will be sending two of those players to the Montreal Impact.

LA FC will be sending Jukka Raitala and Raheem Edwards to the Impact.

The return? Bob Bradley and LA FC will acquire Impact center back Laurent Ciman — who has proven to be one of the best defenders in MLS since arriving in 2015.

“Laurent is a top defender who provides leadership and great distribution,” Bradley said upon acquiring Ciman. “His experience in the league and with the Belgian National Team will be invaluable as we build our club.”

With the addition of Ciman now in place, LA FC has built a strong central defensive partnership after the club also brought in former FC Dallas defender Walker Zimmerman in a trade on Sunday.

The expansion side already made a major splash with its first Designated Player signing this year, bringing in Mexican international Carlos Vela.

Huddersfield 1-3 Chelsea: Blues bounce back on the road

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Chelsea picked up a convincing road victory on Tuesday as the Blues topped Huddersfield Town, 3-1, at the Kirklees Stadium.

[ MORE: Gremio reaches Club World Cup final ]

The Blues came out hungry following Sunday’s defeat at West Ham, and an unlikely goalscorer gave  Conte’s group the lead.

Sloppy passing at the back saw Willian with the ball at the top of the Huddersfield area, before the Brazilian brilliantly played Tiemoué Bakayoko in on goal for his second finish of the season.

Willian — who played a key role throughout the match — extended the Chelsea advantage three minutes prior to halftime when his header snuck past Terriers goalkeeper Jonas Lössl.

Chelsea was clicking on all cylinders after halftime, when Willian helped set up Pedro for his third goal of the Premier League season.

Meanwhile, Laurent Depoitre pulled a goal back late for the hosts, but it was too late to rescue a result for Huddersfield.

Crystal Palace 2-1 Watford: Eagles storm back late, move up to 17th

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All things were pointing towards Watford’s direction on Tuesday, but a late change in fortune gave the Eagles a share of the points.

[ MORE: Burnley climbs into Premier League top four ]

A pair of late goals gave Crystal Palace a 2-1 win over Watford at Selhurst Park, and pulled Roy Hodgson’s side out of the relegation zone.

Bakary Sako and James McArthur each found the back of the net after the 87th minute to complete an important comeback for the Eagles. Now, Palace sits 17th in the PL standings on 14 points.

The big moment of the match came in the 87th minute, when Tom Cleverley was sent off after picking up his second yellow card.

Three minutes into the match, Daryl Janmaat struck for the visitors after the Dutchman headed home Richarlison‘s cross from close-range.

Burnley 1-0 Stoke City: Barnes’ late strike guides Clarets into top four

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Don’t look now, but the Clarets have climbed into the Premier League top four.

Burnley found a way Stoke City late on Tuesday, picking up a 1-0 win at the Turf Moor behind Ashley Barnes‘ late finish.

[ MORE: Gremio reaches Club World Cup final, awaits Real Madrid or Al Jazira ]

The Clarets, who have now secured 31 points over their first 17 matches this season, leapfrogged Liverpool, Arsenal and Tottenham with the victory. However, all three sides will be in action on Wednesday.

Steven Defour nearly put Burnley ahead on 69 minutes, when the front man tested Stoke keeper Jack Butland — who had to make a sprawling save to his right.

While Stoke mustered up several quality chances, it was Johann Berg Gudmundsson’s blast in the first half that nearly found the top left corner.

Next up for Burnley will be a date against Brighton on Saturday, while Stoke travels to Huddersfield the same day.