Erentz
Knows everything! 5 years later.
- Joined
- May 31, 2009
- Messages
- 956
Probably doing it for publicity, to announce to the football world that they've got a pimp as well.
The "killing the game" bit comes not because of the price tag, but because of the lack of silverware. If Falcao was to move to any one of United, Chelsea, City, Real etc then he'd have a chance of silverware whereas if he joins Monaco then realistically it's going to be a while before they're on the European platform.The suggestion seems to be that if Monaco pay £50 million for a player is "killing the game" but if the club you support does it its a masterstroke? What people are actually pissed off about is that whichever player isnt signing for their club.
The "killing the game" bit comes not because of the price tag, but because of the lack of silverware. If Falcao was to move to any one of United, Chelsea, City, Real etc then he'd have a chance of silverware whereas if he joins Monaco then realistically it's going to be a while before they're on the European platform.
Although, for what it's worth, I haven't got a problem with these oligarch teams so long as they don't go around hoovering up all the promising talent and letting them rot. The more competition the better, and I'd much rather a domestic league with the likes of City, Chelsea and potentially Arsenal (if they spend the money they supposedly have) than a SPL-esque two horse race every year.
Always wanted to see him in a big team like United. As long as he doesnt go to Chelsea or City or Madrid, he can go where ever he wants to. Barca will not sign him. Arsenal might not have the money. Bayern looked like they are stocked or are more interested in Lewandowski. Has been my favorite striker for the past couple of seasons.
Who else is on their radar?
They're obviously intent on doing a PSG this summer so Falcao won't be the only one.
Murmurs of Nasri going there along with Jeremy Menez of PSG. Not as big as Falcao, but impressive for a club that isn't even in Ligue 1.
Chelsea's Falcao raid seemingly foiled by £50m Monaco mega-deal
Chelsea's pursuit of Radamel Falcao appears to have been foiled by ambitious Monaco owner Dmitry Rybolovlev.
He has agreed a £50million deal to bring the Colombian Atletico Madrid striker to France, according to the Sunday Times.
The deal will see Falcao, 27, paid an eye-watering £8.2m a year after tax.
Monaco owner Rybolovlev wants Monaco to usurp Paris Saint-German as Ligue 1 winners and then win the Champions League.
His side were relegated in 2011 and will return to France's top flight next season.
Falcao's contract with Monaco will include an escape clause that allows him to leave after just one year - giving him the chance to join Atletico's rivals Real Madrid.
Chelsea were torn apart by Falcao during the Super Cup earlier this season, the forward bagging a hat-trick as the Spanish side ran out 4-1 winners.
Chelsea's own Russian billionaire Roman Abramovich was hoping to bring him to Chelsea but was unwilling to pay the whole of the Colombian's release fee.
http://www.dailymail.co.uk/sport/fo...o-latest-Monaco-set-beat-Chelsea-striker.html
And he's not even a kid. It's not like he's a 20 year old who has tons of time to wait, he's 27.
If this does happen, like I have said before it's such a waste of a great striker, as Monaco aren't anywhere near challenging for their own domestic title let alone Europe, and with CL teams like Chelsea and United vying for his signature, this is even more money driven than if he went to a team like City.
That being said, I would prefer to live in Monaco to London and Manchester if I has the choice. £8 mil isn't too bad either.
Monaco will be fighting for the title in France with PSG for the next few years. They are bankrolled by an extremely rich Russian who appears to be very eager to invest heavily into the club.
If this does happen, like I have said before it's such a waste of a great striker, as Monaco aren't anywhere near challenging for their own domestic title
You have probably all already seen that Falcao is destined for Monaco. There were a lot of rumors about a potential move to Manchester United, Chelsea, Real Madrid and others - so why does he end up moving to Monaco?
The answer is because of the complicated third-party ownership involved with Falcao. There was a very similar situation with Hulk when he moved to Zenit.
To explain this, we need to take a step back and first see how third party ownership works. Those in England would have previously seen this topic as it reached prominence when Carlos Tevez and Javier Mascherano signed for West Ham United. Here were two stars from Argentina signing for a club in London who were struggling to stay in the top flight. The controversy lead to West Ham paying compensation of £18M to Sheffield United, and lead the FA to ban third party ownership.
But third party ownership is still alive and well on the continent. It is most often applied with South American stars making the jump across the Atlantic to Europe. The way it works is that investment groups will purchase the registration rights of an upcoming player. This is sometimes done while the player is at a club, and sometimes as part of a transfer.
For eg. one scenario would be that a 16 year old star in South America would be approached by an agent and asked if he wants backing with marketing and making it big in Europe. These deals usually involve paying the player a better salary, hooking him up with a better agent, better management, sponsorship deals etc. If and when the player agrees, the third party owners will then go to the club he is registered to and negotiate to buy his registration rights - either all of or part of.
The player is then in the hands of the management and third party ownership group, who manage every aspect of his career from that point on. That usually involves paying him a larger salary on top of his club salary, placing him in clubs where he will get more exposure, etc.
The other way third-party ownership happens is that the investment group finances a transfer for a player. For eg. Porto want to sign a player from Brasil but don't have the funds, they would approach an investment group and have them stake 50-60% of the deal in return for the players registration rights.
The investment group make all of this upfront investment with the hope that at some point in the future the player proves himself, becomes a star, and can then exit at a very large valuation.
Some examples: Tevez and Mascherano were placed into West Ham by their investment group as a way of getting them more exposure. It worked out well in both cases as Liverpool purchased Mascherano (buying out the investment group and giving them a good return) and City eventually ended up buying out Tevez - albeit via Manchester United (who never owned the entirety of his transfer rights).
Back to Falcao. He was purchased by a third-party ownership group as part of his transfer to Porto. They bought 55% (likely more) of his transfer rights, supplemented his salary while he was paying at Porto and then moved him to Atletico for the purpose of getting him more exposure (likely with an eye on moving him eventually to Real Madrid). During the time Falcao was there, the investors were supplementing his wages again (infact paying most of them) and working on negotiating his big move which would see them cash out.
Porto's financials show the following for the Falcao transfer:
sale of 60% of the economic rights of the player Bolatti to the entity Natland Financieringsmaatschappij B.V., on July 2009, by the amount of, approximately, 1,500,000 Euro, (transaction perform under the acquisition process of 40% of the registration of Falcao)
There is another section where it is disclosed that they sold another 5% option in Falcao, and another section where it is disclosed that there is an option for a third party to purchase a further 10%.
The same filing shows that Porto only owned 45% of Hulk.
What is more interesting is who is involved in the Falcao ownership. The group is called Doyen Sports and it was founded by Jorge Mendes (most famous as Ronaldo's agent, but an infamous player agent who is involved in a lot of third-party deals) and Peter Kenyon (former Chelsea chairman).
On their website they have a page for Falcao and you can also see the other players listed. Falcao, like Hulk, ended up in a situation where there was so much invested in him that it would take a lot of money for the investors to see a return (known as being highly leveraged). They were paying his salary for a few seasons, had floated Atleti some money to keep them alive (they got some shirt sponsorship in return) and had made the initial investment when he first transferred.
Falcao ends up moving to Atletico in a 40M move - despite Atleti the previous season stating that they had to clear players out because of their 220M euro tax bill with the Spanish government. What this ended up being is a 20 + 20M deal. 20M never gets paid because its just the third-party owners paying themselves, and of the other 20M only 16M is owed by Atleti, who take an option of paying in two 8M installments (they were late on the first one, to the point of Porto suing). End situation is that around 60% of the rights are with the Doylen group. It also appears that while Falcao was at Atletico that Doylen took an option for a larger stake in him since Atleti were late on their payments. Something weird happen which involved Doylen taking a sponsorship. Either way, they had the majority stake and Atletico had no say or control of the player. For all purposes it was nothing more than a loan with Atletico having a small stake in his registration rights.
The president of Atletico Madrid continuously insisted that they own all the rights to Falcao, but this simply isn't true.
Falcao is on a wage of 10M euro per year, and the return the investors wanted is 60M euro in transfer fee. This narrows down the list of potential clubs that can buy you out to very few. Atletico had no say in where Falcao goes, they had an option in the winter transfer window, but that expired. The owners needed their return and they were going to get it one way or the other.
The list can be narrowed down to PSG, Monaco, Real Madrid, Chelsea and City. City aren't making large investments any longer, PSG have their fix of strikers. Of the remaining three, it is apparent that Real Madrid didn't want to pay up the 60M + 50M in contracts for Falcao (for whatever reason). Apparently Chelsea matched the 60M clause but to pay Falcao the 10M per season in wages would involve a total gross salary of 300k+ per week, which just isn't manageable. Chelsea also have the issue of not being allowed to directly purchase a player from a third-party owner (apparently this is what turned Man Utd off a move) so it would have required a two-step sale with Falcao going to one club outright and then to Chelsea. Apparently with the David Luiz transfer on the same day he moved to Chelsea Benfica bought out the entirety of his rights from third-party owners (so you can summize that Chelsea gave them the money to buy out that deal so that they could purchase 100% of Luiz directly from Benfica, thus avoiding the third-party rule in England).
With all of these factors you end up with only one target: Monaco. They have the 60M to pay out the investors, they have the funds to pay his wages of 10M per year and better yet they have no income tax so they don't have to supplement the gross.
So in the end Falcao is moved around Europe by his investors with the only goal of making a return for them. He has little to no say in his final destination because of a deal he agreed to years ago while he was still in South America.
An interesting post that the user nikcub on reddit made regarding Falcao and explaining third party ownership.
Explaining the Falcao move to Monaco
An interesting post that the user nikcub on reddit made regarding Falcao and explaining third party ownership.
Explaining the Falcao move to Monaco
I'm not reading all that. Can somebody sum it up for me in ten words or fewer...
I'm not reading all that. Can somebody sum it up for me in ten words or fewer...
If that's true, we are not going to get involved in that, are we?
It's good too that he's moving to Monaco instead of City or Chelsea
No. Stay ignorant.
Nope, we can't sign a player who is co owned by a third party. It's against Premier League regulations. And there's not a hope in hell we can afford to buy out his third party ownership and pay his massive wages.
So basically all of these Chelsea and United rumours couldn't possibly happen anyway? Well what a waste of muppet material that was! Thanks for clearing that up, can't believe the rumours went on for this long.
So basically all of these Chelsea and United rumours couldn't possibly happen anyway? Well what a waste of muppet material that was! Thanks for clearing that up, can't believe the rumours went on for this long.
Nope, we can't sign a player who is co owned by a third party. It's against Premier League regulations. And there's not a hope in hell we can afford to buy out his third party ownership and pay his massive wages.
So this supposed 52m Euro buyout clause doesn't include the 3rd party?
Chelsea could buy him out, but it'd be a massive investment. Apparently when Chelsea bought Luiz, they had to pay Benfica money for the transfer and money for Benfica to buy out his third party.
Despite the payment made by Manchester United for Falcao (which guaranteed them a first option and keep them up to date with any offer that was arriving for the Colombian), Monaco is going to offer both Atletico de Madrid and the player a financial package that, they think, will not be able to be matched by United. They will pay 55 million euros to Atletico, and Manchester United have already said they will not get more involved in the auction. To convince Falcao, that has not given the go ahead yet, Monaco will include a clause that will allow him to leave cheaply if Real Madrid come calling at any moment of his stay at Monaco, a club that will not participate in Europe next season as they are just being promoted. The multimillionaire Dimitry Rybolovlev wants to contact too Victor Valdes and other European figures to make his team a rival to PSG and soon to the big powerhouses in Europe. So the United dream of replacing Falcao for Wayne Rooney (who, according to chief scouts in two big European clubs, can still be sold if any of the big clubs want him) is over.