Bailout Coming For L.A. Galaxy As League States Club Is Too Big To Fail

NEW YORK - In long letters sent to Major League Soccer Clubs this week, the league regulatory agency pointed to the dangers created by the global reach and complexity of LA Galaxy, which are bigger now than they were before the 2001 soccer crisis. League officials laid out a permanent path to playoffs for the struggling team as they indicated they would be allowing L.A. into the playoffs permanently, regardless of league position, until they can get their team solvent, again.

"WHAT DO WE WANT?" A league that lets clubs fail! "WHY?" Because we love misery for ourselves and others! "DO WE THINK THIS IS GOING TO HAPPEN?!" NO! "THE POST PROTEST LUNCH IS AT SBARRO!"

"WHAT DO WE WANT?"

A league that lets clubs fail!

"WHY?"

Because we love misery for ourselves and others!

"DO WE THINK THIS IS GOING TO HAPPEN?!"

NO!

"THE POST PROTEST LUNCH IS AT SBARRO!"

The current arrangement of 10th place and 27 points for L.A. Galaxy could “pose serious adverse effects to the financial stability of the Major League Soccer,” the regulators said in their letter to The Nutmeg News.

The regulators this week did not come close to calling for an additional and yet unnamed player acquisition rule for the Galaxy to exploit, yet they did in effect provide backing for Mr. Garber's premise that not enough has been done to safeguard the financial system that LA Galaxy provides to the league.

“The goal to end too big to fail and protect the Franchise investor by ending bailouts remains just that: only a goal,” Mark Abbot, the deputy Commissioner of the M.L.S., said in a statement. 

The FED (US Soccer Federation) and the M.L.S., which jointly oversee the largest clubs, agreed that the plans put forward by five of the big franchises, L.A. Galaxy, D.C. United, New England Revolution, F.C. Dallas and New York Red Bull to allow permanent playoff access and unlimited player signings after the window closed for all original teams were “not credible or would not facilitate an orderly resolution under the U.S. Soccer Code of perceived fairness.”

However regulatory officials stated that they would be allowing permanent access for L.A. Galaxy to the playoffs regardless of league position in order to prop-up a diminishing fan-base capital. 

"We cannot continue too big to fail, but we must take care of our assets. With a new club opening in the same location very soon, we require solvency and relevance at every level. As such, we are prepared to deploy an incentive package to bail out L.A. Galaxy which includes playoff access, as the first step, followed by further incentives if they struggle including unlimited player signings, unlimited financial incentives, player steering and schedule reconfiguration. We are fully prepared to prop up L.A. Galaxy against the vagaries of the market," stated Mr. Abbot.

The Nutmeg News will have more on this as the Galaxy reconfigure their entire roster during the 2017 offseason seemingly in violation of whatever shadow rules M.L.S. has.