Manure deeply in debt

[onourway]

Squeaky arse time with Manure's financiers, if they do bottle the Prem & CL, how they going to repay their debts?

 

With Manchester United powering to a probable second successive Premier League title and ready for a Champions League final, it appears that life at Old Trafford could hardly be rosier, but the club's accounts, now published in full, detail a significantly bleaker picture of the club's finances under the ownership of the Florida-based Glazer family.

 

Before the family's 2005 takeover, United prided itself on being the only Premier League club regularly to make a significant profit, to have cash in the bank and, unlike all the others, no debts. After the leveraged takeover, the Glazer family loaded their borrowings on to the club and the position has changed. The accounts for the company that the Glazers use to own United show total borrowings, in the year to June 30 2007, were up to £666m, by far the highest of any English football club, ever. The total owed to all creditors, including the banks, was up to £764m and includes £56m that United owe to other clubs in transfer fee instalments on players Sir Alex Ferguson has signed.

 

The total interest payable by the club on its borrowings was £81m, although only £42m was actually paid. The rest, which accrued on the millions owed to hedge funds, is allowed to roll up until the whole amount has to be repaid in 2016, or, alternatively, until the Glazers can refinance it. A total of £152m is currently owed to hedge funds, at 14.25% interest a year - £22m from 2007-08. Last year the Glazers tried to refinance but were unable to strike a deal with financial institutions, and a spokesman acknowledged that the credit crunch is making it more difficult now.

 

David Gill, United's chief executive, announced the headline results back in January, stressing that United's phenomenal money-making power, with 76,000 crowding into Old Trafford and the Premier League's huge TV rights deals, had produced record income of £210m and operating profits of £75m. The full accounts show, however, that even though United made a further £11m profit from buying and selling players, the interest and other accounting provisions pushed United into recording an overall loss of £58m.

 

The accounts also reveal that by far the highest proportion of income, £92.5m, is still generated on home match days, and although the club has announced more modest ticket price rises for next season than for the previous two, supporters groups continue to protest that they are paying the debts of a takeover they opposed. "It is outrageous that supporters are paying the huge interest on these borrowings, which are worrying for the club's future," said Sean Bones of the Manchester United Supporters Trust. "Our money is pouring out to pay the Glazers, while they have not put a penny into the club."

 

The spokesman for the Glazer family pointed to the club's success on the field, and in generating income off it, as evidence of the family's competent management. "The family continue to run United as a business," he said. "Their model is to encourage success on the pitch by backing Sir Alex Ferguson, and to grow revenues off it. The interest payments are more than covered by the cash generated."

 

http://www.guardian.co.uk/football/2008/ma...d.premierleague

[Siam Sam]

Hmm, and in several national broadsheet newspapers a while ago they were being hailed as the richest club in the world again. Depends who you believe. I'd worry more about what you'll do when Abramovich has finally had enough. We will always fill our ground whatever happens and have the income from shirt sales etc, part and parcel of being probably the biggest club on the planet.

[onourway]

Hmm, and in several national broadsheet newspapers a while ago they were being hailed as the richest club in the world again. Depends who you believe. I'd worry more about what you'll do when Abramovich has finally had enough. We will always fill our ground whatever happens and have the income from shirt sales etc, part and parcel of being probably the biggest club on the planet.

 

Take a look at the source of the story, seems that some folks on the Manu board was telling porkies about the finances

 

Sure one day RA will sell Chelsea but, until then we're along for the ride (good & bad)

 

Manu the biggest in debt club on the planet

[Parkwahn]

Take a look at the source of the story, seems that some folks on the Manu board was telling porkies about the finances

 

Sure one day RA will sell Chelsea but, until then we're along for the ride (good & bad)

 

Manu the biggest in debt club on the planet

 

 

2 points - First there are 2 Frank Lampards the senior played for West Ham, junior took a good penalty last week (About time though)

 

Money has ruined football, even now Annelka who made the winning goal last week is advertising Samsung as a Chelsea player.. He has only been there

2 minutes.

 

Where is Steve Sidwell signed from Reading not played and condeming Reading to relegation, good luck to the Chelsea fans enjoy your win which you will but when time goes by they remeber how you play not what you win..

Rodney Marsh, George Best, Brady , Hoddle..................

 

Whe Remembers with fondness teams which grind out results by playing like Wimbledon with decent players.

 

Does anyone remeber last years cup final ? No it was stifled by Chelsea all that money asn they wont cross the half way line with more than 2 people..

 

Who remembers Man City Spurs.. The Villa goal ? Many people for sure..

 

When the young fans get older the will realise winning need doing with style to be truly great..

 

Rant over

[Siam Sam]

2 points - First there are 2 Frank Lampards the senior played for West Ham, junior took a good penalty last week (About time though)

 

Money has ruined football, even now Annelka who made the winning goal last week is advertising Samsung as a Chelsea player.. He has only been there

2 minutes.

 

Where is Steve Sidwell signed from Reading not played and condeming Reading to relegation, good luck to the Chelsea fans enjoy your win which you will but when time goes by they remeber how you play not what you win..

Rodney Marsh, George Best, Brady , Hoddle..................

 

Whe Remembers with fondness teams which grind out results by playing like Wimbledon with decent players.

 

Does anyone remeber last years cup final ? No it was stifled by Chelsea all that money asn they wont cross the half way line with more than 2 people..

 

Who remembers Man City Spurs.. The Villa goal ? Many people for sure..

 

When the young fans get older the will realise winning need doing with style to be truly great..

 

Rant over

 

 

Could not agree more. Chelski can't fill their ground NOW every game and their attendances not all that long ago were laughable. Funny how every fucker jumped on the band wagon as soon as they had a bit of money. That judas wanker Kenyon and his attempt at trying to male Chelski the biggest club in the world is pathetic. They won the league 2 years on the trot in the most negative fashion, grinding out results. At least United always play attacking football, although perhaps that is their downfall at times. I wonder what will happen if Chelski end up with fuck all this season and they have to change the manager again? Without the Russian and his money they will go back to where they belong.

[Jaco2]

............When the young fans get older the will realise winning need doing with style to be truly great..

 

Rant over

 

Never a truer word written! My team Arsenal appear to have mastered the style part - but we're a bit light in the silverware at the moment. Hopefully, Flamini's departure and our fading performance in the last 6 weeks of the season will prompt him to loosen the purse strings a little in the summer.

 

I can't really have sympathy for ManUre as they - and more recently Chelscum - have been bashing the other clubs with their oversized cheque books for years. That was one of the reasons why Arsenal built the Emirates Stadium - for the financial clout that has given us. Arsenal are also the only one of the "Big Four" to try run the club on a balanced budget principle. I hope that doesn't change but I fear that Keith Edelman's departure will trigger a boardroom war at Arsenal between Kroenke and Usmanov like the Gillette vs Hicks battle at Liverpool. At least the Glasers have a reasonable track record. ManUre have a great name/franchise which not even the Glasers can destroy. For the record I hope that Kroenke wins any boardroom power struggles and Danny Fizman (Arsenal's largest shareholder at present apart from Usmanov) stays.

[Parkwahn]

I dont see a big 4-

 

There is now a big 2, they will get stronger with Arsenal and Liverpool getting weaker.

 

League 1 Man U, Chelsea

League 2 Arsenal, Lpool

League 3- Villa, Spurs, etc

 

League 4- Brum, Wigan, WBA, and the rest of the shit

 

The issue is most of the games are not contests, same as the first league seeded section European Cup its a waste of time

[whitespider - RIP]

Hmm, and in several national broadsheet newspapers a while ago they were being hailed as the richest club in the world again. Depends who you believe. I'd worry more about what you'll do when Abramovich has finally had enough. We will always fill our ground whatever happens and have the income from shirt sales etc, part and parcel of being probably the biggest club on the planet.

 

They were the richest, by far. Still are in terms of revenue and operating profit.

 

Problem is when a businessman comes along, borrows millions to buy the club then (quite legally) dumps the debt on the business which is what he has done. In other words he has all the benefits of ownership but none of the debt he initially incurred.

 

Im no RA fan but he has used his OWN money to fund Chelski not other peoples. AFAIAA he hasnt dumped that debt on the business - yet.

 

Whatever the ins and outs of the ManU situation they are not the stable [financial] entity they were 3 years ago that is fact!

 

The good news is that they are so strong that the "lenders" will almost certainly ride it out but it will only take one to pull the plug.

 

Real Madrid have lived on Bank Loans for many years - the Spanish banks see them as a "good bet" and continue to plough in money. If you are getting 100m a year in interest payments it probably matters little that it should be 150m.

 

FWIW - Leeds were deducted points for being "in debt" (effectively) - seems like there are two seperate RULES applying unless "underwriting" debt makes that rule irrelevent (I dont know).

[Siam Sam]

The issue is most of the games are not contests, same as the first league seeded section European Cup its a waste of time

 

I agree to a certain extent but look at who we have lost to the last few seasons, no game is a given.

 

 

They were the richest, by far. Still are in terms of revenue and operating profit.

 

Problem is when a businessman comes along, borrows millions to buy the club then (quite legally) dumps the debt on the business which is what he has done. In other words he has all the benefits of ownership but none of the debt he initially incurred.

 

Im no RA fan but he has used his OWN money to fund Chelski not other peoples. AFAIAA he hasnt dumped that debt on the business - yet.

 

Whatever the ins and outs of the ManU situation they are not the stable [financial] entity they were 3 years ago that is fact!

 

The good news is that they are so strong that the "lenders" will almost certainly ride it out but it will only take one to pull the plug.

 

Real Madrid have lived on Bank Loans for many years - the Spanish banks see them as a "good bet" and continue to plough in money. If you are getting 100m a year in interest payments it probably matters little that it should be 150m.

 

FWIW - Leeds were deducted points for being "in debt" (effectively) - seems like there are two seperate rules applying unless "underwriting" debt makes that rule irrelevent (I dont know).

 

Some good points. United can fortunately gamble on the fact that they will always have huge incomes from various areas and can ride the storm. I think Leeds had debt in a different respect and also infringed FA RULES.