Friday 24 February 2012

When Is A Third Party Agreement Not A Third Party Agreement? - A Flashback

Nearly three years ago, we produced the below post on third party arrangements and the manner in which Richard Scudamore and those in control of his actions avoided the rules, the law, morals, ethics, integrity and normal practice in the interest of all shady shades.

ScudamoreWorld remains an Adhocracy within the Murdochracy.
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On Friday July 13th, Football Is Fixed posted that the Carlos Tevez transfer was a done deal with the only remaining obstacle being how to construct a "reality" that would accommodate the multifarious public stances taken by the protagonists. That the final resolution has taken until yesterday to complete was solely a result of further non-strategic foot dragging by the Premier League. The deceleration of this process has merely served to make both their posturing as an organisation and the incompetence of chief executive officer (CEO), Richard Scudamore, more apparent to more people, as the delay has merely produced more damning column inches that have allowed more individuals to discern the Premier League's truly Orwellian fabrication of crime and punishment.
Briefly looking at the overview of this blatant piece of spectacular society corruption, we'll take each of the key participants in turn.
We stated just a couple of days ago that Richard Scudamore has more than passed his sell-by date. His mismanagement of the English game both within the public arena and away from the prying eyes of probity has been abysmal. When one compares his decision making with the interests of the more crooked elements that are corrupting our game to its core, we find a far-too-revealing positive correlation (which obviously occurs entirely by chance). However, his psychic ability to parallel Premier League strategy with the black and grey market's agenda is one of those spooky coincidences that has to be resultant in unemployment if such individuals were accountable to watchdogs. But they're not. The Premier League's accountability axes lead to some rather unsavoury loci.
Scudamore has been the media face that has projected his and his organisation's incompetence onto the footballing public in the Carlos Tevez affair. They dug themselves into a hole and just kept digging when strategic oversight would have preferenced a negotiated settlement. In financial markets, a key behavioural factor is testosterone. The male-dominated marketplace repeatedly throws up instances of testosterone-driven individuals undertaking strategies that are to their own and their associates disadvantage rather than selecting alternative options that might produce a small gain for all. The Premier League have behaved similarly. One of the problems for the likes of Scudamore is when the spin gets out of control. The conjunction of a variety of separate media realities results in people getting cornered in nightmares of their own chaotic creation. So it is with Scudamore. Quest and bungs, the influence of Zahavi and Berezovsky, the takeovers by Shinawatra and Yeung, the Carlos Tevez transfer and the West Ham non-relegation, mismanagement or what? And this are only the tip of the iceberg that is available to public eyes. Insiders also are able to detect the other machinations that are totally undermining and destabilising the game to the financial advantage of a smallish number of very corrupt entities.
Specifically with regard to Tevez and West Ham. By clearing and, indeed, financially rewarding the Hammers for their corrupt practices related to third party agreements, the Premier League set in motion the very public decline of their executive authority. The crisis was spun from Day One as the Premier League sought to achieve their aims with an abusive template. The other parallel stories conspired to establish a typical damage limitation infrastructure where each of the options open to Scudamore's brigade was a losing position. The scenario whereby the third party contracts never existed legally would have been overturned in the High Court to the accompaniment of excessive public awareness of the Premier League's murkier activities = LOSE. Or the scenario where the third party agreements did exist and were legal calls into serious question how the Premier League could possibly not relegate West Ham = LOSE. Keeping the various plates spinning in a spectacular creation of endless contortions until the media loses interest = LOSE. Or, the choice that the Premier League eventually arrived at, reach an out-of-court settlement with all the parties. Despite the fact that this settlement is conclusive proof of the corruption undertaken by the Premier League on a range of different levels as they repeatedly break (and allow others to break) the rules that they are supposed to oversee, pretend that you are still in control of the process while avoiding any cross-referencing between the final solution and any of the executive decisions preceding it = LOSE.
In non-sophisticated sectors like football, the tone of the press releases following these type of tiffs are always revealing. The Premier League's entirely desperate attempt to paper over the chasms states: "The decision of the board, having received leading counsel's opinion, is that the agreement reached is compliant with the rules of the Premier League and consistent with the undertakings given by West Ham United to the Premier League board at various times since 27th April 2007".
No, the agreement is not compliant with the Premier League rules and what about undertakings given by West Ham United PRIOR to April 27th?
Sack the bastard...
When there is a very very big loser, there is usually more than one big winner. In this particular little scam, everybody wins big except the Premier League (who could not have played their hand less expertly) and Sheffield United. Disturbingly, two of the winners should, with judicial equivalence, actually be losers.
In the last two years, it is difficult to find any aspect of the business realities of West Ham United that have even approached the area of ethical behaviour. The illegal transfers of Tevez and Mascherano; the cosy ties with Brooking at the FA; the "interesting" choice of sector links - ask any market analyst; the takeover battle between MSI and Iceland's dodgiest businessman; the undermining of Pardew; the crowning of mr nice guy, Alan Curbishley; the £30 million payment as punishment; having the cheek to spend that money on transfers; accepting the £2 million pay-off from Manchester United that proves the illegality of their historical operations. And, yet, Magnusson's men march into the 2007/08 season in a very strong position with, approximately, £26.5 million worth of assets illegally gained. This is quite a weight advantage in the Premiership Handicap Chase 07/08.
As this tawdry affair has developed, there has been an ever-increasing amount of media flak thrown at the real winners of this confrontation, the really dodgy people - Joorabchian, Zahavi, Berezovsky, MSI Group Limited and Just Sport Inc (JSI). The Quest inquiry, the match fixing scandal at Corinthians and the money laundering charges in Brazil against Joorabchian and Berezovsky are all indicative of the sectors in which these people choose to operate. It is common practice in South America and Africa for slave-like contractual conditions to be the norm as players are tied to criminal operations. The fact that this particular operation has come to light is just another tip of just another iceberg. The football authorities, on the whole, accept this illegal trafficking in legally non-represented human beings - the contracts are heavily tilted in favour of the owners of the player's registrations. Looking at another iceberg - the one representing the financial gains to MSI and JSI - shows exactly how much these dodgy operators have profited from Tevez and Mascherano. Manchester United will pay £10 million to these people for loan playing rights for the next two seasons and then United will have an option to buy. MSI have consequently gained financially from these players at every step of their career entirely illegally and totally without internal policing within the game. And we won't even venture anywhere near the influence that these crooks have on the global football betting markets...
The only parties to have behaved with moral rectitude are Manchester United and Carlos Tevez, himself.
Throughout the process, Man Utd have remained as inside the legal boundaries as was feasible when one is dealing with a rotten edifice. Like Liverpool with Javier Mascherano in January, United have skillfully taken advantage of a slimy corruption to gain competitive advantage. The two year loan deal with an option on outright purchase is a gem of a deal. But, just a point, aren't Manchester United entering into an illegal third party agreement in establishing this loan deal? Just a point... We expect to see the hyper owners hovering around the corruptions, even those corruptions not directly under their influence, as a frequent backdrop to the future English Premiership.
Tevez is a bit of a hero. His life story from day one has entertained Maradona-esque escapades with his existence being anchored by his immense football talent. It is absolutely not only the financial terms of this deal which makes it so massive - Tevez is the business. He has already shown that he can hack it at speed in Argentina, at Corinthians (it is incredibly difficult for any Argentinian footballer to make an impact in Brazil both due to the difference in playing styles and their treatment from opponents, officials and, even, team-mates), for his country in the 2006 World Cup, for a relegation threatened bunch of scallies and, soon, no doubt on the premier footballing stages of Europe. This speedy adaptation to new and alien environments at great rapidity is the very hallmark of a top player. And, to achieve all this against a backdrop of corruption, uproar and criminality = astonishing... Tevez or Torres. Get a grip...
Unless the Premier League determines that another spectacular cataclysmic implosion might best serve their interests, the final word on this corruption should go to one of the biggest losers out of this affair, Neil Warnock. Following the High Court's decision to back the relegation of Sheffield United while acknowledging the efficacy of their legal position, Warnock stated: "so much for the integrity of the Premier League. So much for fairness and justice in English football". Fair dinkum...

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