Tom Brady was suspended for four games and the New England Patriots were fined $1 million (Dh3.7m) on Monday as the NFL punished its marquee player and its Super Bowl championship team over the “Deflategate” scandal.
The National Football League also stripped the Patriots of both their 2016 first round draft pick and the 2017 fourth round draft pick for deflating footballs in a key AFC playoff contest.
“There is substantial and credible evidence to conclude that you were at least generally aware of the actions of the Patriots’ employees involved in the deflation of the footballs and that it was unlikely that their actions were done without your knowledge,” NFL executive vice-president Troy Vincent wrote in a letter to quarterback Brady.
The two-time NFL MVP Brady will serve his suspension without pay. He will miss the Patriots’ first four games of the 2015 regular season, meaning that if the suspension isn’t shortened, he would return to the field against his accusers in week six when the Patriots face the Indianapolis Colts.
The punishment was announced five days after the release of the Wells report which discovered there was “more probable than not” that two Patriots employees had conspired to deflate balls in the team’s AFC Championship game against the Colts, which they won 45-7.
That probe also found that Brady — who went on to lead the Patriots to a Super Bowl victory over the Seattle Seahawks — was “at least generally aware of the inappropriate activities.”
Brady’s agent, Don Yee, slammed the suspension on Monday, describing it as “ridiculous.”
“The discipline is ridiculous and has no legitimate basis,” Yee said. “This outcome was pre-determined.”
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He said four-time Super Bowl winner Brady, 37, would launch an appeal to commissioner Roger Goodell.
“And if the hearing officer is completely independent and neutral, I am very confident the Wells Report will be exposed as an incredibly frail exercise,” Yee said.
Patriot’s chairman and chief executive Robert Kraft called the investigation “one-sided” and said the punishment didn’t fit the crime.
“Despite our conviction that there was no tampering with footballs, it was our intention to accept any discipline levied by the league. Today’s punishment, however, far exceeded any reasonable expectation,” said Kraft. “It was based on circumstantial rather than hard or conclusive evidence.”
The league came down hard on the Patriots Monday, signalling out Brady for specific punishment saying he not only tarnished the league’s image but refused to cooperate with investigators.
The league said Brady — who is arguably the biggest star in American football — declined to turn over his cell phone, texts, and emails to help with the probe, “despite being offered extraordinary safeguards by the investigators to protect unrelated personal information.”
The reaction from NFL players on social media was swift with many of his teammates saying it was unfair, including New England running back LeGarrette Blount.
“This is absolutely ridiculous!!! SMH #PATSNATION Stand up!!!!!,” Blount wrote on Twitter.
Former NFL player Phillip Buchanon wrote that he agreed with the ban.
“Patriots are known for testing the limits of breaking the rules,” Buchanon said.
Arizona Cardinals linebacker Sean Weatherspoon said this was no slap on the wrist.
“I think the suspension is warranted, they came down hard on the organisation though. #Deflategate,” he wrote.
Brady will miss the season opener against the Pittsburgh Steelers, followed by a Sunday contest against the Buffalo Bills and then games against the Jacksonville Jaguars and Dallas Cowboys.
His replacement at quarterback would be Jimmy Garoppolo, who has thrown just 27 passes in the NFL to date.
Patriots coach Bill Belichick was exonerated of any wrongdoing in the cheating scandal.
“The report identified no evidence of wrongdoing or knowledge of wrongdoing on the part of any member of the coaching staff, including Head Coach Bill Belichick,” Vincent said.
The league also said Monday that it believes this is not the first time the Patriots have been guilty of deflating footballs to try to give Brady a competitive advantage.
“The evidence suggests that January 18th was not the first and only occasion when this occurred, particularly in light of the evidence referring to deflation of footballs going back to before the beginning of the 2014 season,” Vincent wrote.
The league said Brady would still be allowed to take part in training camp, including pre-season games.
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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