Huge Man United debt.
Re: Huge Man United debt.
The Glazers can service the debt, so the club is a going concern. They can't pay it off though, I can see them selling if they can find someone with enough cash.
Re: Huge Man United debt.
"The Glazers can service the debt"
Surely "the Glazers are struggling to service the debt" would have been a more honest appraisal?
The latest accounts show a profit of ?48m, but without the Ronaldo money (?80m) it would have been a loss of ?32m - and the prospectus for the recent bond issue warned that further players may need to be sold to service the debt. Not to mention that the Glazers themselves had to pay an additional ?25m in interest last year (additional to Man Utd's ?42m that is) and had to "borrow" ?10m from Man Utd in order to do so and furthermore they will now take another ?70m out of the club to reduce their own indebtedness and therefore their own interest payments. Of course by reducing their own debt the Glazers are increasing Man Utd's debt, although the Man Utd debt at least will be at a much better rate of interest than their own. By "diverting money to the corporate parent" the Glazers will save themselves ?10m a year in interest payments, but add a further ?6m a year to Man Utd's interest bill, already set to rise because the recent bond issue has a liability of ?45m a year in interest payments rather than the ?42m the club paid last year. If you take player transfers out of the equation entirely, Man Utd may need to make an operating profit of ?51m this year to service the debt, compared to the operating profit last year of ?10m. Since they have apparently signed a player for ?12m recently, this would increase the level of operating profit needed to service the debt to ?63m, a highly significant improvement on the ?10m achieved last year.
Surely "the Glazers are struggling to service the debt" would have been a more honest appraisal?
The latest accounts show a profit of ?48m, but without the Ronaldo money (?80m) it would have been a loss of ?32m - and the prospectus for the recent bond issue warned that further players may need to be sold to service the debt. Not to mention that the Glazers themselves had to pay an additional ?25m in interest last year (additional to Man Utd's ?42m that is) and had to "borrow" ?10m from Man Utd in order to do so and furthermore they will now take another ?70m out of the club to reduce their own indebtedness and therefore their own interest payments. Of course by reducing their own debt the Glazers are increasing Man Utd's debt, although the Man Utd debt at least will be at a much better rate of interest than their own. By "diverting money to the corporate parent" the Glazers will save themselves ?10m a year in interest payments, but add a further ?6m a year to Man Utd's interest bill, already set to rise because the recent bond issue has a liability of ?45m a year in interest payments rather than the ?42m the club paid last year. If you take player transfers out of the equation entirely, Man Utd may need to make an operating profit of ?51m this year to service the debt, compared to the operating profit last year of ?10m. Since they have apparently signed a player for ?12m recently, this would increase the level of operating profit needed to service the debt to ?63m, a highly significant improvement on the ?10m achieved last year.
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Re: Huge Man United debt.
JamesW wrote:
> "The Glazers can service the debt"
>
> Surely "the Glazers are struggling to service the debt" would
> have been a more honest appraisal?
>
True, the Gimp Family have raped Man Utd, but the point I was making was that the club is still a going concern, and will be as long as they can service the debt. This was one of the more awful examples of a leveraged buyout, and must count as the unacceptable face of capitalism. Actually, given the state of this ugly family of munters, let's just call them the unacceptable face of humanity.
Still, could be worse, look at Portsmouth, that poor club has been spit roasted.
> "The Glazers can service the debt"
>
> Surely "the Glazers are struggling to service the debt" would
> have been a more honest appraisal?
>
True, the Gimp Family have raped Man Utd, but the point I was making was that the club is still a going concern, and will be as long as they can service the debt. This was one of the more awful examples of a leveraged buyout, and must count as the unacceptable face of capitalism. Actually, given the state of this ugly family of munters, let's just call them the unacceptable face of humanity.
Still, could be worse, look at Portsmouth, that poor club has been spit roasted.
Re: Huge Man United debt.
I used to like a good bit of football on tv but now you can't find it on normal tv. I wonder how many young fans they will miss out on cos most people will not pay for it?
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Re: Huge Man United debt.
There are some of us who couldn't give a fuck!!
Wrong shaped ball mateys.
Wrong shaped ball mateys.
RoddersUK