Tag Archives: England

Are big clubs using MLS to get around FFP?

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Originally posted on YOUAREMYARSENAL.

It may seem odd to report on Financial Fair Play on an Arsenal blog without a focus or direct link to the club. But news this past weekend caused me and others to take notice and well, on first blush it presents the possibility of a worrying trend to circumvent FFP.

Reports have come out this past weekend saying that Bayern Munich are looking to support an MLS side at some time in the near future. This follows the news that Manchester City have formed New York City Football Club, who will enter the MLS in 2015.

A lot of people, especially in the states, will be delighted with these two potential link ups, as it supposedly highlights the growing popularity of the MLS and the possibility that more link up’s with some of Europe’s elite clubs will occur. These link-ups will see the European sides hopefully help the MLS sides financially, assist in improving the coaching and development of youth players, and lead to potential loan deals of youngsters from Europe to America. All of this having the knock on effect of increasing the level of quality on show. Perhaps most importantly, it will also see an increase of European sides playing in America against their ‘partner club.’

Whilst on paper, this looks all well and good – Manchester City for example have invested $100m into the league to ‘buy’ into their MLS franchise – I see it as a worrying danger to the future of European football, as clubs can potentially use the MLS clubs to circumnavigate the Financial Fair Play rules.

They way I see it working is as follows: Manchester City (for example) want to buy a player, lets call him Lionel Messi. Now Manchester City’s owners have the money to buy Messi, however, a £100 million transfer fee will put them in breach of UEFA’s regulation’s. So rather than buy him themselves, they buy him through their MLS franchise, who then immediately loan him to the European side for the length of his contract.

Manchester City then get a player of real quality, but at no cost, allowing them to balance the books when it comes to FFP.

I’ve provided an extreme example. Yes, MLS has stringent player contract and payment models but you get the point. A player of quality could be had and loaned to the bigger club without it violating any rules. Conversely, in England were the size of squads are being restricted, the MLS seems a great place for a club with unlimited fund to buy loads of talented young players and offload them without the club taking any hit.

The broader problem is that this has potential to expand to leagues outside the MLS, it can happen with any league throughout the world, outside of Europe. Whether it is a link up with an American side, an Asian side, an Australian side or a South American side. They would all act as the middle man, absorbing the cost of the transfer into their accounts – which is then written off by their owners – and allowing the European side to stay with UEFA FFP rules.

It’s not all too dissimilar to what already happens throughout the business world. For example, Starbucks use second tier companies based in tax havens to ‘buy beans’ to ensure their UK business does not make a profit, therefore avoiding UK Corporation tax. This method could work in a very similar method, with football clubs using sides outside of Europe to write off expensive transfer’s.

The MLS has very strict financial rules with regards to wages, however, these will also be circumnavigated as the European club will take the wage. I am also sure the MLS will turn a blind eye to being accomplices to this loophole if it ensures the League see’s a bit of the oil money currently in Europe. $100 million a franchise buys a lot of friends.

How these link up’s between European and MLS sides actually works will still be a case of ‘wait and see’ but the speculation of the scenario above, that European clubs will use them as an FFP avoidance scheme has real potential and should be a worrying sign. But we know it won’t – so long as everyone gets their palm greased.

This article was originally written and published by Keenos for our American friends YOUAREMYARSENAL.

Keenos

 

 

Everton – The best team we’ve played this season

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Walking away from the Emirates Stadium last night, the talk was whether the draw against Everton was 2 points dropped or a point gained. For me, it was 2 points dropped. To win the league, you need to be winning your home games from winning positions. This was the 2nd time we have let slip a lead at home. Whilst we might currently be 5 points clear, this gap could have been doubled had we held onto leads against Aston Villa and Everton.

At 1-0 up with 6 minutes to go, you would expect Arsenal to be able to hold on. However, the Everton goal, we could do little about. Critics might say Gibbs should have got closer, or that Szczesny should have saved it, but these are harsh. Gibbs’ positioning was correct and it was a rocket of a shot which went past Szczesny before he could react. Criticism of the pair, taking into account their form this season, is harsh. Especially Szczesny, who has won us more games with sensational saves than anyone. He surely has plenty of good faith in the bank.

Anyway, whilst it was 2 points dropped, the Everton side were comfortably the best I have seen us play. Despite us losing to both Aston Villa and Manchester United, Everton were comfortably better than both. Currently 5th in the league, they are just 2 points behind Liverpool, and on yesterday’s showing, they have to be taking into consideration for the race for the Champions League.

If I were a Manchester United or Tottenham fan, I would be very worried. With Everton playing so well, both sides might not even get into the top 5 this season, meaning no European football.

It is no European football that is benefiting Everton this season. There game is about high pressing and plenty of energy in the midfield, with a solid 3 of the impressive Ross Barkley (Surely he and Wilshere should be England’s midfield in Rio?), James McCarthy and Gareth Barry. Everton have played just 17 games this season. This was Arsenal’s 24th. Not playing Thursday and Sunday every week (yes, I know they played midweek this week) is certainly helping Everton. You only have to look at how Swansea have struggled this season to see the effect.

Lack of International football is also a factor, with the likes of Distan, Barry, and Pinner not playing it, and many others being fringe squad players. Olivier Giroud & Aaron Ramsey, for example, have played 27 games for club and country this season, whilst Romelu Lukaku & Gareth Barry have played 17 and 12 respectively. Lack of games is certainly keeping the Everton side fresh.

They are also receiving the massive benefit of 3 on loan players, in Lukaku, Barry and goal scorer Gerard Deulofeu, they have essentially managed to nab themselves £30m+ worth of talent without needing to spend a penny. My views on the loan system are for another blog, however would Everton be where they are were it not for their loan players? Probably not.

What is for certain is that Everton have moved forward under Roberto Martinez. Playing good football and looking very solid. They have lost just 1 game this season, remember. With his style of play, tactics and ability to run a football club, not just the team, a couple of good years at Everton and I could certainly see Martinez being in the frame for the Arsenal job.

We should not be too down hearted on a draw at home to Everton. They are the best side we have played and are very hard to beat. Whilst it is 2 points dropped, they have, and will continue to, take points off other sides at the top of the league.

With Napoli, Manchester City and Chelsea coming up next, we have an important few weeks coming up. It is important that we continue to back the side. The next 3 games will determine our season.

Keenos

 

10 Reasons why we will beat Hull CITY+ starting XI

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Before I start slaughtering Hull City and how we will stuff them tonight I’d like to wish their fans all the best with keeping the name Hull City. Owners are just custodians of football clubs, without fan’s there wouldn’t be clubs, Owners should bare that in mind.

1.. Chesney’s save in the 2nd half Vs Cardiff was every bit as important as our 2nd and 3rd goals. GREAT points winning save and the sign of a keeper really on top form.

2.. Gibbs and Sagna are both on form, both doing great defensive work as well as knowing when to push forward. Sadly with Sagna having a slight hamstring injury and Gibbs needing protecting we may see Monreal and Jenks step in.

3.. BFG and Kos must be the best centreback pairing right now in England if not Europe.

4.. Ramsey, 2 goals with zero celebrations against his former boyhood club. If that’s not the mark of a true Arsenal man and future captain I don’t know what is.

5.. Jack, Proving a lot of people wrong, myself included, he can play in any position in midfield if needed.

6.. Ozil, even when he looks quiet he’s capable of pulling a few strings and picking out a pass which leads to a goal.

7.. A few cameo appearances so far from returning from injury, Theo, about time he started a game. I’ve never rated him coming off the bench.

8.. Hull city; played 13, won 5, drawn 2, lost 6, scoring only 12 goals and letting in 16. They even managed to lose to tottenh*m 1 nil (guessing that was a last min penalty, but I wont bother checking).

9.. Giroud, even when he doesn’t score he is involved and it’s about time people looked at him as more a number 10 than an out and out striker.

10.. Wenger knows, December is going to be a tricky month and could shape our season so some careful squad rotation is needed.

Chesney, Jenks, BFG, Kos, Monreal, Flamini, Rosicky, Ramsey, Jack, Theo, Giroud.