Chelsea, Manchester City’s new means of dealing with Financial Fair Play

5 Comments

Major League Soccer commissioner Don Garber claims his league is losing between $75-$100 million a year, a claim more likely a pre-collective bargaining stance than anything reflecting the league’s true financial health. The claim does, however, highlight the state of MLS’s maturation. With signings like Clint Dempsey’s and Michael Bradley’s, and with investments from clubs and the league helping the teams move beyond their first generation venues, it’s easy to slant the books to make the league seem more impoverished than it actually is. Put those big, long-term commitments on the books now, and leave the league to look thriving once a new collective bargaining agreement is signed.

They’re the same type of machinations that could also help the league’s new partner deal with UEFA’s Financial Fair Play regulations. Manchester City, who this week also acquired Melbourne Heart in Australia, have become one of Europe’s big spenders since Abu Dhabi United took over the team in 2008. They’ve paid a premium to bring the likes of Yaya Toure, Sergio Aguero and Fernandinho (among others) to greater Manchester. In the process, they’ve served as one of the poster boys in UEFA president Michel Platini’s quest to get big clubs’ spending in line with their incomes.

Designated Players and Manchester City’s new Marquee contract havens

That’s where MLS (and the A-League, two leagues with permeable salary caps) come in. With no FFP-esque oversight in CONCACAF or its Asian counterpart, the AFC, those highly speculated Gareth Barry-esque loans become a way to get inefficient contracts off the books, giving City some extra room beneath UEFA’s spending ceilings. If City can send Barry’s salary ($10.37 million) and, say, Javi Garcia’s ($7.26 million) to NYCFC while claiming their child club will cover the wages, the parent team all of a sudden has a significant amount of breathing room on their books. While Abu Dhabi United adds money directly to NYCFC’s coffers, City gets some FFP flexibility they wouldn’t get if their owners were merely writing checks to the club.

Under FFP, UEFA has the power to investigate these shady dealings. The problem is, on the books, this won’t look shady. City will loan the players to NYCFC and have their wages covered by their partner. NYCFC will simply pay for them and either not have to explain that Abu Dhabi United’s simply shifting money from one pile to another or confess that’s what’s happening while asking ‘why shouldn’t we be able to do this?’

Of course, that’s all speculation. NYCFC is still a year away from taking the field. Who knows what their team will look like? Yet, if Manchester City so choose, they can fill their new teams’ three Designated Player spots with City’s less useful contracts. They can do the same at Heart with the A-League’s Marquee Player rule (one per team). With whispers around MLS saying City has already secured promises for more lenient spending rules (perhaps more Designated Players), it’s not difficult to imagine the Australian federation  making similar guarantees to lure a high-profile owner.

source: Getty Images
On loan at Everton this season, midfielder Gareth Barry has been linked with a move to NYCFC for 2015 – the new franchise’s debut season in Major League Soccer. (Photo: Getty Images)

In the grand scheme of things, it could be seen as nitpicking at the margins. On the other hand, if City are able to take four contracts that aren’t significantly contributing to their team, move them abroad, and get room within FFP to replace them, those could be the type of margins that make a difference at the highest levels. Given the gap between Arsenal and City at the top of the Premier League, or the gap in quality between Barcelona and City in their UEFA Champions League Round of 16 matchup, every little bit could help.

When UEFA implemented FFP, it’s unlikely they anticipated these kinds of maneuvers. As Platini spoke against the continued spending of his confederation’s biggest clubs, he never spoke about the possibility of “player havens” popping up across the globe. It’s unlikely that’s Manchester City’s sole intent (the growth possibilities alone in MLS and the A-League justify the expenditures), but the havens are still a nice coincidence. How many of Europe’s top teams would pay a one-time $100 million fee to have a permanent FFP work around?

Chelsea: Udinese, on a totally different level

In a completely different way, one City’s Premier League competitors appear to be developing a different work around, one that was evident when they sold Kevin de Bruyne to Wolfsburg. Although Chelsea never significantly used their young Belgian attackers (loaning him out for 1.5 of his two years at Stamford Bridge), they were able to turn a nice profit on the former Genk star. Having become the Wolves’ record signing earlier this month, the near-$15 million Chelsea netted in transfer fees will go toward their FFP bottom line. Though wages and other expenses take a bite into that profit, the Blues still made big money off their de Bruyne flip.

For purchases like Mohamed Salah, Chelsea’s unlikely to experience that kind of profit. And with deals like Fernando Torres’s, Gary Cahill’s, Willian’s and Eden Hazard’s, they’ll surely lose money, just as most teams do when they pay their key players. But among the 26 players Chelsea have on loan — including Vitesse’s Christian Atsu, Middlesbrough’s Kenneth Omeruo, and Valencia’s Oriol Romeu — the Blues will have a few more de Bruynes. For every Thibaut Courtois or Romelu Lukaku that eventually breaks into Jose Mourinho’s first team, there may be two eight-figure flips that pad Chelsea’s FFP margins.

source:
Purchased from FC Porto this summer, Ghanaian international Christian Atsu is one of five Chelsea players at Vitesse in the Dutch Eredivisie.

It’s a model that Serie A club Udinese is built on, even if the Giampaolo Pozzo’s team is operating on a much lower level. With 33 players on loan between the Serie A, Granada (Spain) and Watford (England), the Genoa-based club have set up an infrastructure that allows the Bianconeri to scoop up and house prospects across South America and Europe, hoping to find another Alexi Sanchez. Though the Zebras rarely find a player that allows them to collect over $35 million (as the Chilean did from Barcelona in 2011), smaller sales make the model work, with players waiting to be sold making up the squads of Pozzo’s expanding number of clubs.

Instead of paying $1 or $2 million on true prospects, Chelsea’s able to spend much more on more established talents. And while those players’ values mature — while they’re out on loan across Europe — most of the wage burden is being picked up by other clubs, leaving only the balance and an amortized transfer fee on the Blues’ FFP bottom line. Instead of selling on the Sanchezes of the world, Chelsea keeps the stars they develop, with the rest of their sales addressing their financial end.

That end isn’t profitability. It’s Financial Fair Play – rules implemented to try to bring clubs’ spending in line with income. In the case of Chelsea and Manchester City, however, new approaches are (or will) allow them to play beyond FFP’s pure intent. For Chelsea, that means becoming a broker for emerging talent, helping them to either the Premier League or some nice wages while they await their next permanent home. For City, that means setting up franchises across the world, with the rules of each region potentially helping the Citizens transcend UEFA’s limits.

Coronavirus: Italy may lift ban on sporting events by Monday

Photo by Matteo Ciambelli/NurPhoto via Getty Images
Leave a comment

MILAN (AP) The Italian government could lift its ban on sporting events by Monday in areas affected by the coronavirus if the number of cases stabilizes.

The outbreak forced a number of sporting events to be called off throughout the country this past weekend, including four Serie A matches in the north of Italy.

This week, the ban on sporting events was extended from Lombardy, Veneto and Piedmont – the areas hardest hit by the outbreak – to also include the regions of Friuli Venezia Giulia, Emilia Romagna and Liguria, until March 1.

[ MORE: Premier League schedule ]

“If, as I hope, the statistics don’t give us different signs then maybe already by Monday these measures won’t be continued,” Sports Minister Vincenzo Spadafora said. “But it’s only Tuesday today and we have to wait and see what happens over the next few days. The health of the Italian citizens is the most important thing.”

Italy reported a 45% increase in the number of coronavirus cases Tuesday, from 222 to 300. Ten people have died, all of them elderly or suffering from other ailments.

“Obviously, I can’t say I’m not worried because I don’t want anyone to think we’re underestimating this emergency,” Premier Giuseppe Conte said before meeting with visiting World Health Organization representatives. “But we trust that with the measures we have implemented, there will be a containing effect in the coming days.”

Italy has closed schools, museums and theaters in the two regions where clusters have formed and troops are enforcing quarantines around 10 towns in Lombardy and the epicenter of the Veneto cluster, Vo’Euganeo.

Serie A matches this weekend are set to be played behind closed doors, including Juventus’ key match against Inter Milan. That game is not only potentially crucial to the title race but also sees the return of former Juventus coach Antonio Conte.

Inter’s Europa League match at home to Ludogorets on Thursday will also take place without any fans allowed in.

Serie C canceled all games in two leagues which have teams in the north. Volleyball and rugby games were also suspended nationwide through next weekend.

The Italian Winter Sports Federation suspended all of its events throughout the country for an entire week, although it said that “for now” next weekend’s World Cup ski races in La Thuile in the Valle d’Aosta region were still set to go ahead. Those races are operated by the International Ski Federation, which has already canceled races this season in China that were slated to test the course for the 2022 Beijing Games.

More AP soccer: https://apnews.com/Soccer and https://twitter.com/AP-Sports

El Tri winger Jurgen Damm headed for MLS this summer

Jurgen Damm
Photo by Cesar Gomez/Jam Media/Getty Images
Leave a comment

This season’s Liga MX invasion of MLS continues with Jurgen Damm announcing that he’ll leave UANL Tigres this summer after five years with the club.

TUDN has the destination as Atlanta, though previous reports have linked Damm to the LA Galaxy is the spot.

And MLSSoccer.com scribe Tom Bogert says the Houston Dynamo have his “discovery rights” (which remains the worst concept in the entire league).

Reports emerged over the past 48 hours that the El Tri man was headed for an MLS club.

[ MORE: Premier League schedule ]

The 12-times capped winger has one goal for Mexico, but has not been capped since Oct. 2018. He has spent his entire career in Liga MX.

Damm spent the early part of his career with Tecos and Pachuca, but has been with UANL Tigres since 2015.

He won four league titles with UANL, as well as the 2018 Campeones Cup.

Ex-Arsenal man Gnabry: “London’s still red” after Bayern beats Chelsea

Serge Gnabry
Photo by Roland Krivec/DeFodi Images via Getty Images
Leave a comment

Ex-Arsenal man Serge Gnabry still has love for the club.

Gnabry tweeted that “London is still red” after he scored twice for Bayern Munich in a 3-0 beating of Chelsea on Tuesday in the first leg of a UEFA Champions League Round of 16 tie.

This after scoring four times against Spurs in a previous Champions League group stage match and Tweeting that “North London is Red.”

[ MORE: Premier League schedule ]

So what’s with the London form?

“I’ve got a lot of friends here,” Gnabry said after the game. “A lot of them were in the stands tonight, and it seems they give me a lot of good power.”

Gnabry only scored once during his time in England with Arsenal and West Brom but is a bona fide star in the Bundesliga.

With a three-goal advantage over Chelsea heading to Munich for a second leg, however, he’s not got his head in the clouds.

“Three goals ahead gives us a little bit of confidence, but we need to be prepared for the second leg. We can’t take it not seriously enough. … We’ve seen it last year with Liverpool beating Barcelona, so we have to be careful. We have to go into the second leg with all of our focus.”

Gnabry now has 51 goals and 29 assists in four seasons since returning to Germany from Arsenal. Not terrible production for a player the Gunners offloaded to Werder Bremen for under $6 million in 2016.

What color will London be when Chelsea buys him next year? We kid, we kid…

Champions League preview: Real Madrid renews rivalry with Pep; Lyon hosts Juve

UEFA Champions League preview
Photo by Kevork Djansezian/Getty Images
Leave a comment

The final two ties of the UEFA Champions League’s Round of 16 begin Wednesday when Manchester City and Juventus head to Spain and France.

The focus for many will be on the former, as City continues to weather UEFA drama while its manager prepares for his fiercest foe as a player and manager.

[ MORE: Premier League schedule ]

Pep Guardiola has managed against Real Madrid 17 times and boasts a 9-4-4 record between Barcelona and Bayern Munich.

The Catalan wizard has lost his last three versus Real, two with Bayern and once in his final El Clasico as Barca boss.

Even as Guardiola stresses preparation and plan, he knows there will be bounces and that both teams will have to cope with them.

“We have to be strong, have quality and need to have luck,” he said, via The Manchester Evening News. “At this stage, it’s important but we cannot control that. We can control what we can control and we will see. This competition, last season, against Liverpool, there are decisions. You have to overcome. You need incredible concentration in our game and game plan plus try to be a little lucky.”

Real Madrid living legend Sergio Ramos has earned the ire of Guardiola on plenty of occasions, one of the few things Liverpool and City fans have in common.

Ramos wouldn’t get drawn into rivalry talk, sying the stage somewhat negates the opponent.

“I have a lot of respect for him,” Ramos said via the club’s web site. “I think he’s a fantastic coach, with loads of experience, and his numbers speak for themselves. We’re motivated by the Champions League, regardless of the players or coaches who may have been rivals in the past. We’re up for the Champions League and our next task is to beat City. From a personal point of view, I’m just focused on making the next round.”

[ MORE: Key battles for Real-Man City ]

Wednesday’s other match sees a club long linked with Guardiola, as Juventus will play the role of heavy favorites against Lyon.

Maurizio Sarri‘s side is to bidding to win what’s eluded all Juve bosses since Marcello Lippi beat Ajax in 1996. If they succeed, it will be by going down a different path than it’s traveled in recent years.

Here’s Leonardo Bonucci, via Football-Italia:

“What the coach asks of us now is basically the opposite of what the previous coach did,” Bonucci mused. “It was usually individual against individual, now it’s more about organized team movements. Obviously, you need to train consistently to get that down and playing every three days makes it difficult. But we started this journey well aware of the positives it could bring and the difficulties of getting there.”

Lyon has been maddeningly inconsistent this season, sitting seventh in the Ligue 1 table, but has the tools to surprise if Juve doesn’t bring its best. That starts in France on Wednesday.