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View Full Version : Skirting the cap, LA Galaxy style....



jloome
03-31-2015, 08:43 PM
According to this article, the Galaxy are paying for Steven Gerrard's $20,000/wk mansion in Malibu for 18 months.

http://www.dailymail.co.uk/tvshowbiz/article-3019318/Steven-Alex-Gerrard-live-lap-luxury-sprawling-16-8m-Malibu-home-ocean-view-prepare-relocate-Los-Angeles.html

Shenanigans!

Blizzard
03-31-2015, 08:46 PM
According to this article, the Galaxy are paying for Steven Gerrard's $20,000/wk mansion in Malibu for 18 months.

http://www.dailymail.co.uk/tvshowbiz/article-3019318/Steven-Alex-Gerrard-live-lap-luxury-sprawling-16-8m-Malibu-home-ocean-view-prepare-relocate-Los-Angeles.html

Shenanigans!

I doubt that was supposed to leak out. I recall that TFC was close to signing a solid defender. All was ready to go but then he asked for a couple of cars for the family. TFC said they weren't allowed to do that and he got pissed and the deal fell through.

AdamAM
03-31-2015, 08:51 PM
Nothing surprising considering that slimeball Bruce Arena runs the team

notthesun
03-31-2015, 08:52 PM
Did anything like this ever leak about Nesta? Always wondered exactly how Montreal pulled that off...

mowe
03-31-2015, 09:05 PM
MLSE bought Defoe a condo too right? I remember hearing something about that.

Anyway, this isn't skirting the cap because Gerrard is a DP. He just has a fixed cap hit and over that LA can pay him whatever the hell they want in whatever form they want. Housing, cars, cut of jersey sales, marketing, etc.


Did anything like this ever leak about Nesta? Always wondered exactly how Montreal pulled that off...

Nesta is currently employed as a "scout" for Montreal while he lives in Miami.

Areathrasher
03-31-2015, 09:11 PM
Yep, MLSE did the same thing with Defoe.

It was in Kellys piece about how the deals happened.

jloome
03-31-2015, 09:17 PM
MLSE bought Defoe a condo too right? I remember hearing something about that.

Anyway, this isn't skirting the cap because Gerrard is a DP. He just has a fixed cap hit and over that LA can pay him whatever the hell they want in whatever form they want. Housing, cars, cut of jersey sales, marketing, etc.



Nesta is currently employed as a "scout" for Montreal while he lives in Miami.

Good point on the Dp thing. Easy to see why he signed.

WestStandGeoff
03-31-2015, 09:28 PM
According to this article, the Galaxy are paying for Steven Gerrard's $20,000/wk mansion in Malibu for 18 months.

http://www.dailymail.co.uk/tvshowbiz/article-3019318/Steven-Alex-Gerrard-live-lap-luxury-sprawling-16-8m-Malibu-home-ocean-view-prepare-relocate-Los-Angeles.html

Shenanigans!

I'm not up on Malibu real estate, so wondering if $20k per month actually gets you a "mansion", or if that's just enough to get you a 4 bedroom with a decent view?

The figure seems like a lot, but I'm reminded of a couple articles I read last week (like this one (http://www.bloomberg.com/news/articles/2015-03-12/manhattan-studios-set-rent-record-as-tenants-go-small)) about the median price for a 1-bedroom apartment in Manhattan being around $3,400. And yes, I realize Gerard isn't going to New York, but Malibu is still pretty exclusive...

Auzzy
03-31-2015, 09:47 PM
I'm not up on Malibu real estate, so wondering if $20k per month actually gets you a "mansion", or if that's just enough to get you a 4 bedroom with a decent view?

The figure seems like a lot, but I'm reminded of a couple articles I read last week (like this one (http://www.bloomberg.com/news/articles/2015-03-12/manhattan-studios-set-rent-record-as-tenants-go-small)) about the median price for a 1-bedroom apartment in Manhattan being around $3,400. And yes, I realize Gerard isn't going to New York, but Malibu is still pretty exclusive...

Check the article, it's a pretty sweet pad. David & Yolanda Foster had it custom-built 5 years ago.

EDIT plus it's $20k per week, not per month. Home valued at Cdn$ 32 million. 6 bedrooms, 9 bathrooms, etc.

OgtheDim
03-31-2015, 10:15 PM
Meh...if its a DP, its not an issue. Frankly, I don't care where he lives.


Bigger issue for the league will be the affordability as a rookie to live in a place like NY, Toronto, Vancouver or LA.

Pookie
03-31-2015, 10:33 PM
It seems weird to me that we still think of MLS' assigned budget process as a salary cap. I guess if it is repeated often enough, people accept it as truth. It clearly isn't. Even MLS doesn't call it a cap. They use the word budget charge.

They assign budgets to franchise operators and flex them as needs and opportunities arise. Just like budgets within departments of a corporation.

And equally weird is the belief that operators (or teams) act independent of the owner (MLS).

MightyDM
03-31-2015, 10:51 PM
It seems weird to me that we still think of MLS' assigned budget process as a salary cap. I guess if it is repeated often enough, people accept it as truth. It clearly isn't. Even MLS doesn't call it a cap. They use the word budget charge.

They assign budgets to franchise operators and flex them as needs and opportunities arise. Just like budgets within departments of a corporation.

And equally weird is the belief that operators (or teams) act independent of the owner (MLS).

we have missed you Pookie. Your belief in the written rules of MLS is delightfully quaint.

OgtheDim
03-31-2015, 10:53 PM
....And equally weird is the belief that operators (or teams) act independent of the owner (MLS).

(Edited out an unkind and untrue remark)

Every single owner is or is represented by an alpha male. They don't do "yes sir", "no sir". Every single report of what an owner says or does (yes I know the operator lingo - it don't meet reality) indicates they are independent. There is a frame of team work involved, that these guys have bought into. But, nobody is going to tell these billionaires and CEO's what to do with their investment within that framework. If LAG want to buy Gerrard a house, MLS ain't going to question it. If NYRB want to fire their coach, MLS ain't going to question it. If TFC want to buy an old European defender..........oh wait, they question that, which just proves that there is a framework.

Pookie
04-01-2015, 06:05 AM
(Edited out an unkind and untrue remark)

Every single owner is or is represented by an alpha male. They don't do "yes sir", "no sir". Every single report of what an owner says or does (yes I know the operator lingo - it don't meet reality) indicates they are independent. There is a frame of team work involved, that these guys have bought into. But, nobody is going to tell these billionaires and CEO's what to do with their investment within that framework. If LAG want to buy Gerrard a house, MLS ain't going to question it. If NYRB want to fire their coach, MLS ain't going to question it. If TFC want to buy an old European defender..........oh wait, they question that, which just proves that there is a framework.


Day to day operations are clearly up to the teams. MLSE screwed this up without MLS help.

But when it comes to player acquisitions, they clearly work with the league. To skirt a rule, suggests that they found a loophole. Something to exploit like when NHL owners signed massive front end loaded player contracts over many years to lower the salary cap hit. This troubled the NHL, so they closed the loophole.

MLS won't act to stop people buying houses for Gerrard.

They go even further and work with the teams, particularly big market teams, to get the players that help the MLS brand. In the case of Henry, the $0 transfer fee to NYRBs or $5M to any other team in MLS is clearly a further example of how negotiations involve the league and players end up where they want them to end up. Melberg is an example of how it can work against teams too.

Another difference is the actual enforcement of the salary cap. The NHL calculates it daily and teams have to sit out players if they are over the cap. When does this ever happen in MLS? It won't. The league isn't the watchdog over its teams. It's the lead dog in the pack.