Man City charged with financial breaches by the EPL

7,371 Views | 79 Replies | Last: 2 yr ago by jeffk
KCup17
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It's really hard for me to believe that since 2009 no one knew about the breach in financial rules. For 14 years no one knew... I don't buy it. Which is why I think a fine and nothing more.

I would love to see a point deduction though. Could City handle the EFL grinder? IDK but I would love to see it.
ThunderCougarFalconBird
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jeffk said:

Could this happen to PSG is a better thought experiment, I think.
same problem as la liga/Barca. You cut them adrift and you replace them with a team that has marginally solvent ownership and a 15,000 seat stadium in a town with less than 100,000 people.
deadbq03
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ThunderCougarFalconBird said:

jeffk said:

Could this happen to PSG is a better thought experiment, I think.
same problem as la liga/Barca. You cut them adrift and you replace them with a team that has marginally solvent ownership and a 15,000 seat stadium in a town with less than 100,000 people.
And worse, PSG represents the lion's share of Ligue 1's UEFA coefficient. No idea what would happen to their points if they expelled PSG, but if it meant those points went away, it likely costs the whole league at least one direct CL group stage spot.
Ag Since 83
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Supposedly the British government was going to issue its whitepaper about a potential regulator tomorrow, and that whitepaper has now been delayed.

So if you buy into the theory that getting serious about City now after all these years is about the Premier League trying to show the government they don't need a regulator, maybe there will be some punishment. A slap on the wrist probably won't cut it.
DeangeloVickers
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Go watch FIFA special on Netflix.

Man City will probably get to host world cup games in 2034
Dre_00
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Ag Since 83 said:

Supposedly the British government was going to issue its whitepaper about a potential regulator tomorrow, and that whitepaper has now been delayed.

So if you buy into the theory that getting serious about City now after all these years is about the Premier League trying to show the government they don't need a regulator, maybe there will be some punishment. A slap on the wrist probably won't cut it.

This.

And I'd add to the fact that the EPL would be shooting itself in the foot with a howitzer if it spent 4 YEARS investigating a club and came away with a pittance of a fine after it was found guilty. They would effectively permanently etch in stone what the public just strongly assumes. That the rules and regulations of the league are meaningless and clubs can do whatever the hell they like in regards to their finances.

I get all the pessimism. I have it to. But there are some fundamental differences at play here that aren't at play at say, UEFA or FIFA. It might all end the same way but...it might not.
Texaggie7nine
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As a Man City fan this is my current reaction




FFP rules = "hey don't let any up and coming club outspend my precious dynasty team of old."
7nine
ThunderCougarFalconBird
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Good point. If the EPL doesn't do much beyond a slap on the wrist, the notion of FFP is gone as we know it.
Ag Since 83
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Another thing I heard today: even by announcing this the PL has damaged their brand "yeah so the last 10-15 years of our competition has been dominated by cheaters." You shouldn't risk devaluing your competition like that if you aren't ready to drop the hammer
JJxvi
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Is everybody who cares about this more than just like as an interesting things thats happening also a Liverpool or Manchester United fan?
Furlock Bones
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the flipside to all of this is that the EPL has grown exponentially while all of the other leagues in Europe have either stagnated or dropped in quality and value. argument to be made that allowing all of this foreign money to run roughshod has filled the pockets of everyone involved with the EPL.

the only way to combat run away spending is via a spending cap. but, that does not really work in system of multiple paying competitions and no players union.
DeangeloVickers
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Which is why they wanted to create the super league

Hell, Barcelona is desperate for it
Texaggie7nine
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It really is a way to create the greatest league in the world. Hell if they don't do it, someone else will. Once you have all the richest investors in soccer concentrated in a league, you will see more even handed competition. The only question is, who is the next Chelsea/City/Newcastle.

You can either have your "home grown" "run by locals" teams that never make it to the top, or you can embrace globalization of your product and enjoy top world talent.
7nine
Furlock Bones
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as a ManU fan, i can say most ManU fans are only mad because the Glazers have treated the club like an American investment. use leverage to extract the equity from the club and bank on future value growth whereas Man Dhabi/PSQ/Chelski etc are using the clubs to sportswash and know they will get their money back (or at least breakeven) in the long run thanks to value growth.

Mathguy64
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Except Chelsea isn't sportswashing anymore. And the new owners are about to discover it's neither a level playing field nor anything like owning an American sports franchise.
Furlock Bones
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Mathguy64 said:

Except Chelsea isn't sportswashing anymore. And the new owners are about to discover it's neither a level playing field nor anything like owning an American sports franchise.
yes, i am aware. but, Roman really helped start this.
Mathguy64
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Furlock Bones said:

Mathguy64 said:

Except Chelsea isn't sportswashing anymore. And the new owners are about to discover it's neither a level playing field nor anything like owning an American sports franchise.
yes, i am aware. but, Roman really helped start this.
You could argue he started it.
jeffk
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The US govt should buy Leeds.
TXAggie2011
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Furlock Bones said:

as a ManU fan, i can say most ManU fans are only mad because the Glazers have treated the club like an American investment. use leverage to extract the equity from the club and bank on future value growth whereas Man Dhabi/PSQ/Chelski etc are using the clubs to sportswash and know they will get their money back (or at least breakeven) in the long run thanks to value growth.
I'm not sure that's even a real goal for some of those sovereign wealth owners...it's sports washing, but it's also a play toy and the $ amounts are actually somewhat small change for these Middle East funds.
Texaggie7nine
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Exactly. Russian barons need to wash money because they aren't in control of the gov. M.E. royalty doesn't need to wash money. They just want something to do with all their wealth.
7nine
jeffk
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This isn't "won't it be cool to have some rich owners spend on our team" it's changing the entire financial structure of the leagues.
DeangeloVickers
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Dre_00
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Texaggie7nine said:

Exactly. Russian barons need to wash money because they aren't in control of the gov. M.E. royalty doesn't need to wash money. They just want something to do with all their wealth.

That's...not what sports washing is. These owners aren't buying the clubs just because they want a play toy. They are doing it to enhance their perception and the perception of their nation/city states. Doing that successfully has a MUCH larger impact on their current and future wealth and power than any cost of running a club. It's a calculated investment into a broader strategy, not an impulse buy.

Really there are two separate issues. Yes, the financial weight of a sovereign state destroys the financial fundamentals of the league. But that's a symptom of the decision to initially invest in the first place...which is solely based in geopolitics and currying favor in the West (and globally to an extent) to meet their own political ends.
jeffk
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A lot of people confusing sportswashing with money laundering.
Mathguy64
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jeffk said:

A lot of people confusing sportswashing with money laundering.


It's not far off of that. It's using money to launder your tarnished reputation. In some cases it's actually using money that is illegitimately earned to buy and run a legitimate business. At the international level it's very murky.

jeffk
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Yeah, they're using shady funds to accomplish some improvement of their standing. But with simple money-laundering there are still financial considerations about balancing cash-flow and returns, etc. With these states, they basically have bottomless pockets so they get to circumvent natural financial checks other clubs have to consider. On top of that there are the humanitarian misdeeds these regimes often perpetrate. It's a double-whammy of bad.
Dre_00
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Unless I missed something there's nothing to suggest that the original money source of these owners broke the internationally recognized laws against money laundering.

Yes, their sources may be immoral. Maybe even intertwined with activities that are illegal in other nations. But that in and of itself doesn't constitute money laundering. Money laundering is illegal. Sports washing is definitely not illegal.
deadbq03
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Or to provide a tangible example, Sheriff Tiraspol is most certainly a money-laundering scheme (and probably also sports washing).
GIF Reactor
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TXAggie2011
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Dre_00 said:

Texaggie7nine said:

Exactly. Russian barons need to wash money because they aren't in control of the gov. M.E. royalty doesn't need to wash money. They just want something to do with all their wealth.

That's...not what sports washing is. These owners aren't buying the clubs just because they want a play toy. They are doing it to enhance their perception and the perception of their nation/city states. Doing that successfully has a MUCH larger impact on their current and future wealth and power than any cost of running a club. It's a calculated investment into a broader strategy, not an impulse buy.

Really there are two separate issues. Yes, the financial weight of a sovereign state destroys the financial fundamentals of the league. But that's a symptom of the decision to initially invest in the first place...which is solely based in geopolitics and currying favor in the West (and globally to an extent) to meet their own political ends.


Not sure I'd go that far to say that's "solely" it. I think to an extent these guys are where American sports owners were in the 1990s, who largely didn't get into the game to make money...they had more money then they knew what to do with, a desire for prestige within their own "world"*, and wanted something fun to play with.

*I don't think this is only for the western world. I imagine they're competing with each other, too. "If you're somebody, you gotta own a soccer team!"
Texaggie7nine
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Quote:

who largely didn't get into the game to make money...they had more money then they knew what to do with, a desire for prestige within their own "world"*, and wanted something fun to play with.
Eggggg zack ly.

These guys don't think that if they run a team super well and beat all the other teams that fans all over will love them and see their state and royal family as morally better. They want to just feel the prestige of bumping elbows with the big boys of western industries.
7nine
ThunderCougarFalconBird
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deadbq03 said:

Or to provide a tangible example, Sheriff Tiraspol is most certainly a money-laundering scheme (and probably also sports washing).
Sheriff Tiraspol is just a part of what is a small warlord's fiefdom -- football branch. They're absolutely operating with ill-gotten funds but there isn't anyone with the actual authority to look under the hood.

That said, I think the commentary about petro state ownership and sportswashing is really good on this thread.

I am really curious to see what the EPL comes up with and what Man City is really up to. Think it will affect NYCFC?
jeffk
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Texaggie7nine said:

Quote:

who largely didn't get into the game to make money...they had more money then they knew what to do with, a desire for prestige within their own "world"*, and wanted something fun to play with.
Eggggg zack ly.

These guys don't think that if they run a team super well and beat all the other teams that fans all over will love them and see their state and royal family as morally better. They want to just feel the prestige of bumping elbows with the big boys of western industries.


IDK, I think it can be both. A lot of these guys stand to benefit in multiple tangible ways if their nations/regimes gain wider acceptance by the global public. I think this was a huge motivating factor behind Qatar hosting the World Cup this past year.
TXAggie2011
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ThunderCougarFalconBird said:

deadbq03 said:

Or to provide a tangible example, Sheriff Tiraspol is most certainly a money-laundering scheme (and probably also sports washing).
Sheriff Tiraspol is just a part of what is a small warlord's fiefdom -- football branch. They're absolutely operating with ill-gotten funds but there isn't anyone with the actual authority to look under the hood.

That said, I think the commentary about petro state ownership and sportswashing is really good on this thread.

I am really curious to see what the EPL comes up with and what Man City is really up to. Think it will affect NYCFC?
One thing that the EPL could be interested in, and probably could actually look into, is whether transfers between Manchester City and other City Group clubs actually reflect market values.

Like, folks are debating what's actually money laundering or not? They could certainly do sketchy stuff by moving players around City Group for less than honest amounts.

No idea if that's happening, but I know City constantly pumps out players to their fellow City Group clubs.
ThunderCougarFalconBird
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TXAggie2011 said:

ThunderCougarFalconBird said:

deadbq03 said:

Or to provide a tangible example, Sheriff Tiraspol is most certainly a money-laundering scheme (and probably also sports washing).
Sheriff Tiraspol is just a part of what is a small warlord's fiefdom -- football branch. They're absolutely operating with ill-gotten funds but there isn't anyone with the actual authority to look under the hood.

That said, I think the commentary about petro state ownership and sportswashing is really good on this thread.

I am really curious to see what the EPL comes up with and what Man City is really up to. Think it will affect NYCFC?
One thing that the EPL could be interested in, and probably could actually look into, is whether transfers between Manchester City and other City Group clubs actually reflect market values.

Like, folks are debating what's actually money laundering or not? They could certainly do sketchy stuff by moving players around City Group for less than honest amounts.
Good thought. And possibly for more than honest amounts where the situation calls for it. The price of the player being altered to fit the needs of the organization.
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