Herbalife problem doesn’t look good for LA Galaxy, Major League Soccer

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Herbalife’s business model has always been a bit controversial. Late in 2012, billionaire investor Bill Ackman called their “multi-level marketing” model a pyramid scheme and proceeded to put his money where his mouth is. The Pershing Square hedge fund manager shorted the company’s stock with a $1 billion bet, contending the company was destined to go bust.

Yesterday was a big day for Ackman, with Herbalife stock closing down 7.4 percent after news the company is being investigated by the Federal Trade Commission. The term “pyramid scheme” is being thrown around.

Even if nothing comes of the investigation, this isn’t good news for Major League Soccer; or, more specifically, the LA Galaxy. The Cayman Islands-based company has been a long-time shirt sponsor of the four-time champions, with the partners’ latest 10-year, $44 million sponsorship deal only in its second year. But, as Bloomberg’s Kavitha Davidson explains, that sponsorship becomes a burden for both club and league if Herbalife’s perception goes in the tank:

This isn’t just any soccer club caught up in a potential fiscal fiasco – this is the face of the league. The Galaxy’s success has been a primary booster for the national and global MLS brand …

Herbalife is the official jersey sponsor of the Galaxy, who have several players on the list of the top-selling MLS jerseys. The partnership had only grown stronger in recent months, highlighted by the October launch of the “Be a Pro” Web series …

It would be a hard pill to swallow for both the Galaxy and MLS if these accusations ultimate prove to hold water.

That’s why the FTC’s involvement is so scary. Whereas Herbalife has always been surrounded by ifs, a federal investigation bolsters those hypotheticals.

Perhaps, as the company implies, the investigation could turn into a positive, allowing the brand to clear up any misconceptions about their model’s legality. Until then, though, both MLS and the Galaxy are stuck in the debate’s crossfire.

From Bloomberg:

“Herbalife welcomes the inquiry given the tremendous amount of misinformation in the marketplace,” the Cayman Islands-based company said today in a statement. “We are confident that Herbalife is in compliance with all applicable laws and regulations.”

In the mean time, the league’s most recognizable franchise has a problem literally written across its chests. Should Herbalife go away, a brand as strong as the Galaxy’s would surely be able to replace it. In the interim, though, MLS and one of its marquee franchises will have to ride it out.

Enrique has rare brain tumor removed, faces battle

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Former Newcastle and Liverpool defender Jose Enrique is now an agent, but the headache that came with a manager meeting had nothing to do with the conversation.

[ MORE: Lozano to Barcelona? ]

Enrique had a “brutal” headache following a meeting with Brighton and Hove Albion boss Chris Hughton, his former manager, and tests revealed a rare brain tumor (Spanish language link).

Enrique underwent brain surgery to remove the tumor and now faces 35 sessions of radiotherapy, only available in two European cities.

He lost more than a dozen pounds in a single week, calling it “the toughest time of my life.”

WATCH: World Cup, Day 10 — All eyes on Germany

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Many of the favorites in the 2018 World Cup have disappointed, but until Argentina fell 3-0 to Croatia on Thursday, Germany was the only one to suffer a defeat.

[ MORE: Latest 2018 World Cup news ] 

Die Mannschaft fell to Mexico in their opening match, with El Tri carving up the German midfield on the counter. Now, Joachim Low has had ample time to make the adjustments needed to go for victory as the Germans take on Sweden as they chase a spot in the knockout stages among Group F.

Meanwhile, Mexico looks to prove they’re not a one-hit wonder as they take on South Korea in Rostov. Juan Carlos Osorio has received plenty of praise – and rightly so – for his tactics in the upset victory, and that leaves El Tri with a chance to clinch a spot in the knockout stage with a win.

Before all that Group F craziness, Belgium takes the field in the morning against Tunisia as they look to follow up its comprehensive 3-0 victory over Panama in the opening round. A victory for the Red Devils would not only book a place in the knockout round, but also eliminate Tunisia from contention.

Below is Saturday’s schedule in full.

Click here for live and on demand coverage of the World Cup online and via the NBC Sports App.


2018 World Cup schedule – Saturday, June 23

Group F
South Korea vs. Mexico: Rostov-on-Don, 11 a.m. ET – LIVE COVERAGE
Germany vs. Sweden: Sochi, 2 p.m. ET – LIVE COVERAGE

Group G
Belgium vs. Tunisia: Moscow, 8 a.m. ET – LIVE COVERAGE

Kluivert junior leaves Ajax for Roma in $21m transfer

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ROME (AP) — Roma signed Justin Kluivert, the son of former Milan and Barcelona forward Patrick, from Ajax on Friday for a fee that could rise to 18.75 million euros ($21.8 million).

The 19-year-old Dutch international forward has agreed a five-year contract with Roma.

“I’m very happy. I’m at an incredible club,” Kluivert said. “I cannot wait to start. I believe that Roma is the ideal team for my growth, which will allow me to play at the highest levels.”

Kluivert junior made 56 appearances and scored 13 goals for Ajax. He has one cap for the Netherlands.

He joins Roma for an initial 17.25 million euros ($20.1 million) and performance-related clauses could see the price rise by 1.5 million euros.

Ricketts family, owner of the Chicago Cubs, interested in purchasing AC Milan

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The Ricketts family, who purchased a controlling stake in the Chicago Cubs back in 2009, have interest in further pursuing ownership in financially troubled Italian club AC Milan.

According to a family statement, “The Ricketts family brought a championship to the Chicago Cubs through long-term investment and being great stewards of the team … They would bring this same approach to AC Milan.”

First reported by the Chicago Tribune, the news of the Tom Ricketts’ interest in the team comes on the heels of news that current owner Li Yonghong had failed to meet a Friday deadline for a $37 million loan payment. According to reports, the missed payment means that Li will cede control of the club to Elliott Management, who loaned the Chinese businessman the money to complete his initial purchase of the club last April.

The Chicago Sun-Times also reported the family’s interest in the club, and quoted their source as saying, “The Ricketts put together the management team, resources and training facilities [for the Cubs]. [They did] everything you need top to bottom to be successful.”

Ricketts has plenty of history in soccer ownership, having previously been a part of the group that owned English club Derby County before selling back in 2015. This May, Ricketts also announced he was leading an investment group that is looking to bring a USL expansion team to Chicago.

Forbes values AC Milan at $612 million – a massive 26% 1-year decline – and ranks them the 17th most valuable soccer club in the world. That valuation could be further on the decline, as the storied club missed out on Champions League qualification for the fifth straight year, although they qualified for their second straight Europa League appearance with 6th place finish in last year’s Serie A table, eight points behind Lazio in fifth.

AC Milan also faces heavy sanctions from UEFA regarding Financial Fair Play, although those fears could be eased with the financially-troubled Li selling the club.

The Ricketts family’s wealth comes largely from investment banking, with Tom’s father J. Joseph Ricketts having founded Ameritrade back in 1975. Tom is estimated by Forbes to be worth $1 billion, while his father has an estimated net worth of $2.1 billion.