YOU are the property manager at Old Trafford...

[Devil_78]

Interesting article in the Daily Star yesterday. Yes I know, Daily Star is a total rag... Though it has also been carried in the Sun and the Telegraph...

However, the article basically says the Glazers are looking to move forwards with an expansion of Old Trafford up to a reported 95,000 capacity.

Now, imagine YOU are the Property Manager at OT. The Glazers are leaving the final decision to you, and thusly have handed you a cheque for £100,000,000 to cover the reported cost of the expansion.

What would be your choice?

1)Expand? Get the truly massive crowds in, generating huge amounts of cash? But piling on the debt since to expand means flattening homes and building over a railway line? Or...

2)Leave it as it is. 75,000 is plenty, and the huge debt incurred for expansion means any financial benefits will not be felt for years. If the whole stand is season tickets at the top price, it will take an absolute minimum of 6 years, more likely a decade to make that money back!

What would you do, and your reasoning...

[Devil_78]

To put in my point, I voted yes. Though I do have my doubts. United do seem to be paying down the debt the Glazers saddled them with. Apparently the recent £40,000,000 loss was some kind of "accounting thing." United is more than likely going to fill the extra seats and the extra money will help pay off the debts, and give SAF more money to play with (Lets face it, the rate he is going, he will be manager pretty much forever.)

[Amdrag]

Personally would love it for no other reason then I believe the Theater of Dreams deserves to be on par in terms of capacity with other major football stadiums across Europe. It is already there in terms of mythology and legacy.

On the business side it will be a necessity at some point. Liverpool are willing to go and knock down their beloved Anfield (:rolleyes:)to make a bit more cash to try and catch us. But with our current debt I would be hesitant, especially in this climate.

[Vermont Red]

Why not? What's another hundred million pounds, give or take?

[Teso Dos Bichos]

There are two issues for me:

(1) Can we use the future increased match-day revenue as a means to renegotiate the current debt repayments?

(2) Does doing this in a recession save us money?

[Devil_78]

I would guess that the recession is going to probably not affect it in its totality.

It will probably mean a cheaper construction contract, with price of raw materials falling or holding stable, and construction companies fighting for an ever decreasing pot of contracts at the moment.

However, securing the finance necessary to fund it could be harder given how banks managed to hurt themselves, then turn round and pass the pain on to the rest of us!

[JAKE SPEED]

Need more info.

Amount of new seats?

Pricing w/ and w/o expansion?

Cost of capital and implication of any more debt financing?

Expected sales of season tix?

Funny question to ask on a fan board----essentially, "Is bigger better?"

[Devil_78]

Amount of new seats: 20,000 (reported)
Cost of construction: £100,000,000 (reported)
Cost of seats: I'd guess, given the Glazers keep hiking the prices, then the chances are the prices will at least be the same. There is no guarantee they will be lower!
Cost of financing: I have no idea. Would guess it is going to add a sizeable chunk to Uniteds debt mountain!