Capitalism and the state have lived together before. Now they sail past all of the so called rules in the top of European football.
It is difficult to see any other explanation for Manchester City's contract renewal party. In recent weeks, Aleksandar Kolarov, Samir Nasri, David Silva, Vincent Kompany and Sergio Aguero all signed new long-term contract with Manchester City.
Last Wednesday Edin Dzeko joined the ranks when he signed his new contract to 2018 and in the coming days it is expected that Joe Hart will do the same. These agreements came even though several of the players already had a number of years left on their old contract.
David Silva's contract ran for another three years, Vincent Kompany's for four, and Sergio Aguero signed a contract just a year ago that would have kept him at the club until 2017. The new contracts will keep the stars at the club until 2019.
In May this year it was confirmed that UEFA would punish Manchester City for having violated the union's financial regulations. City were banned during the next two years to increase its payroll of the squad. They were not allowed to sign players for the equivalent 55 million dollars more than they get in on the sale.
In addition, City is forced to slim down their squad for the Champions League from 25 to 21 players. The same penalty applies to PSG who also cannot expand its payroll and had to promise to cut back their spending on transfer (without UEFA presenting a limit on exactly how much).
Bending the rules
Manchester City are not worried, they even pointed to a large hole in UEFA's rules when it came to the constraint that the club should not expand its payroll.
"It is important to note that the bonuses for activities may be paid off this figure" City wrote on its website. Something the club have not been slow to exploit. By simply lpweromg basic salary, and instead write the players' bonuses, City have been able to lower their cost basis and thus make room for new transfers during the UEFA imposed salary cap.
With the transfer window now nearing towards its end, the club has bought Eliaquim Mangala, Fernando, Willy Caballero, Bruno Zuculini and Bacary Sagna.
Revenue generating sales has been Javi Garcia to Zenit St Petersburg, and Jack Rodwell to Sunderland. This means that the club is comfortably under the UEFA limit of spending.
Do YOU want to write for GiveMeSport? Get started today by signing-up and submitting an article HERE: http://gms.to/writeforgms