Arsène Wenger’s seven-year reign – from 1987 to 1994 – saw Monaco make considerable progress in European competition, as losing finalists in the 1992 European Cup Winners’ Cup and Champions League semi-finalists for the first time in 1994.
Wenger also attracted some big names to the club, including Glenn Hoddle and Jürgen Klinsmann. The Principality’s unique tax status among Ligue 1 competitors, allowing overseas players to pay no income tax and strictly limiting the liabilities of domestic players, undoubtedly helped.
Yet Monaco have produced players too, and helped launch the professional careers of the likes of Thierry Henry, Eric Abidal and Emmanuel Petit. Indeed, despite the well-documented tax advantages, one of Monaco’s most successful sporting seasons coincided with a financial crisis.
A huge debt and limited income meant an unfavourable report by the Direction Nationale du Contrôle de Gestion (DNCG), who monitor the financial affairs of France’s professional clubs, and Monaco were demoted to Ligue 2 in summer 2003. The decision was reversed after the Monegasque royal family provided financial guarantees, and coach Didier Deschamps led an effervescent side including Ludovic Giuly and Fernando Morientes to the 2004 Champions League final – where they lost to José Mourinho’s Porto – and to the brink of the Ligue 1 title.
The post-Deschamps years were harder, and money continued to be tight as the team struggled in front of low crowds. Despite other stars popping up at the Louis II (including Christian Vieri, Jan Koller and Javier Saviola), Monaco were relegated to Ligue 2 in 2011.
Friends in high place: Dmitry Rybolovlev (right) with Prince Albert II of Monaco.
Under Russian rule
The arrival of Russian billionaire Rybolovlev heralded a sea change in Monaco’s direction. Previously propped up – and frequently bailed out – by the royal family’s old money, the club is now being propelled forward by new money from the east.
Rybolovlev, 46, started out in business with his doctor father, originally selling medical treatment and then evolving the plan to trade medical products in following the collapse of the Soviet Union. He later accelerated the growth of his empire through investment banking, before later concentrating on the mineral mining industry.
Forbes estimates his net worth at $9.1bn as of March 2013, most of which was acquired from the 2010 sale of his potassium fertiliser-producing company Uralkali, for $6.5bn.
Rybolovlev owns a string of properties across the world but has used his $300m mansion in the Principality – known as La Belle Epoque – as his main residence for several years now.
Reputedly a big football fan, he bought into his local club in December 2011, with the club occupying bottom spot in Ligue 2. It was clear from the start that Rybolovlev meant business. After years of chaotic financial management in a hand-to-mouth existence, the new president completely reorganised the club’s accounting, winning praise from the DNCG.
After avoiding relegation to the third tier, and briefly threatening a late promotion charge, Monaco appointed Claudio Ranieri as coach and armed with a generous budget, won promotion and the Ligue 2 title this May.
What Rybolovlev has done since has sent shockwaves through the whole of the footballing world. Since sealing their return to Ligue 1, Monaco have already spent well in excess of €100m in recruiting coveted Porto pair James Rodriguez and João Moutinho, with arguably the world’s most accomplished centre-forward, Radamel Falcao, also joining.
Rather than simply aiming for top-flight consolidation, it appears that a new-look Monaco are going for the jugular and aiming to challenge champions Paris Saint-Germain straight away.
Some have suggested that this unprecedented scale of spending is a bullish response to the French football authorities’ efforts to curb Monaco’s historical financial advantages.
Under pressure from its member clubs, the Ligue de Football Professionnel (LFP) passed a decree that all member clubs must have their administrative base in France by July 1st 2014 – squarely aimed at Monaco and making them liable to French tax, which is due to hit a rate of 70 per cent on individual earnings of over €1m/year.
Monaco are appealing to France’s Supreme Court, though UEFA’s Financial Fair Play (FFP) regulations, limiting the use of non-earned income, will also come into play.
The club’s future is thus uncertain but Rybolovlev is not waiting around to see what happens – Monaco will seize the day, and there will be fireworks in the short-term, at least.
WHO’S NEXT IN AT THE STADE LOUIS II?
Fabio Coentrao (Real Madrid)
Jose Mourinho may have gone but the attacking left-back’s unhappy second season in Madrid has him pushing for a transfer. The Portuguese is another of Jorge Mendes’ clients, if Monaco really want him then a bid of around €15m (Dh72m) should do the job.
Angel Di Maria (Real Madrid)
His future is largely dependent on Madrid’s transfer plans. If Gareth Bale is a genuine target then you would imagine winger Di Maria to be the one to make way. The Mendes link makes it an obvious possibility but there will be plenty others interested.
Geoffrey Kondogbia (Sevilla)
Complicated third-party ownership involving Doyen Sports – who had 55 per cent of Radamel Falcao’s rights – means the Sevilla midfielder is unlikely to move to England. A French Under-21 international, he would be a popular signing from a PR perspective.
Nani (Manchester United)
Nearly moved to Russia in January and while new United manager David Moyes might want to give him a fair crack of the whip, the Portuguese represents a quick and easy sale. Should Di Maria stay in Madrid, Nani could be Plan B.
* Andy Brassell is a writer and broadcaster on European football for the BBC, ESPN, The Independent & Talksport among others. You can follow him on Twitter: @andybrassell
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– Deal-maker Mendes keeping Monaco ahead of the game
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