If you want to buy an 800m business while only actually investing a fraction of this with your own money, you do it using debt which you put back on the club - a leveraged buyout or lbo. The debt comes at a high cost .... which you also put back on the club. https://www.investopedia.com/terms/l/leveragedbuyout.asp https://en.m.wikipedia.org/wiki/Glazer_ownership_of_Manchester_United
If they're such good businessmen why did they forgot the fact that they can make more money if their product (football) is better? I mean, what's the end game here?
Never said they were good businessman. In business ‘good’ has many different perspectives, good at vamping off the club certainly. Also the businessman who bought us (Malcolm Glazer) died in 2014 - the club is now just an inheritance vehicle for his leeching children.
The Glazers mainly make money from the rising tide that has lifted the value of their shareholding, while financing the debt via the clubs revenue stream. The club valuation is mainly based on EBIT So while being out of the top 4 is unhelpful to them, spending huge money to get back to no 1 may actually lose them money if the clubs finances deteriorated. All that said, it is clear the football side is mismanaged, but given how much $$ Woody made them, you can see why he is untouchable.
I get your point though. Malcolm Glazer obviously had some business ability to have come from little to build a large set of businesses. Last six years Woody has spent (wasted) hundreds of millions on players and managers that have mostly since left. He has presided over a large decline in club success on the field while retaining control of this aspect. From that perspective he has clearly failed. To Malcolm Glazer, Ed would just be they guy who executed his plan. To the Glazer children Ed is probably a lot more, especially with Dad gone. Under Malcolm Glazer, Ed may have paid the price and been replaced.
I would guess that the problem is not so much whether Woody is crap on the football side, but who can actually loosen his grip on complete power. If a manager achieved significant success, that could happen. But I can't see how/why the Glazer kids will move on him, unless there is some decline in value or worsening of the balance sheet.
United still the top earning team in England, but City and Pool are closing in. https://www.skysports.com/football/...money-league-behind-barcelona-and-real-madrid Says it lot that despite how mediocre we've been in the past 6yrs, we're still one of the most profitable sports teams out there. Still going to start paying the price though, with the teams that have enjoyed success recently are poised to overtake us by next year.
Man Utd's fans are up in arms about its poor investment strategy. Its minority shareholders won't be any happier https://t.co/7DrpoY2yV1 via @bopinion— Bloomberg (@business) January 17, 2020
So Ed hires ex-Sun journo Neil Ashton a few weeks back and lo and behold a pro-Woodward puff piece appears in The Sun from Neil Custis. Gaz Nev reaction and the replies to his tweet are funny. RUSH OF BLOOD TO THE ED Ed Woodward is NOT to blame for Man Utd shambles… he has been let down by Glazers and managers Incredible article that.. 😂 https://t.co/D38ao9Il3w— Gary Neville (@GNev2) January 24, 2020
But if it’s found that he’s putting out the Glazers, he’s sure to get the sack, right? Wishful thinking, I know.
MUFC Q2 results. Revenues of £168.4 million. Operating profit of £36.5 million. Commercial revenue up 7%. Broadcast down 37% with no UCL. Matchday revenue down 15% with fewer home games. Net debt is £391 million, up £73 million.— Andy Mitten (@AndyMitten) February 25, 2020
Nevermind - at least there was that very important and prudent 5 month saving from not getting Bruno in the summer and delaying it to January
Okay. The club is changing so radically its scary. What has Ole done to Ed and the high higher ups at United?Class act though. #MUFC https://t.co/1lSMsOZWiH— Abdel (@AbdelBeheri) May 25, 2020
Prem clubs are set to collectively lose a billion because of CV-19, according to financial service firm Deloitte. https://www.bbc.com/sport/football/52999782 That is serious money that is bound to have a serious effect, like in the coming transfer season for starters. Clubs with extra sources of revenue (like United or Chelsea) will be the only ones able to do some serious business. Others will have to generate cash by selling. Trying to work swap deals or pick up available free agents are probably what they will be looking to do also.
Seems likely this will solidify a new top four for the next 5-10 years. It will be a long time before Arsenal and Spurs will are able to make up the ground they’ve already lost. Chelsea, City, and us can keep spending, and Pool has enough talent and cachet to weather it for now.
United is the world's 3rd most valuable club behind Real and Barca. https://brandirectory.com/rankings/football/
I just looked and all of their young talent (pretty much their entire starting 11) is on 2023/24 contracts. And they’ll all want/deserve raises. I’m not sure they can handle the wage bill coming their way. 2 years from now they’re going to have to start making some big decisions. Especially if we/city can start competing and Liverpool don’t keep winning. Edit: Mane is the only outlier on 2025
They let Lallana go on a free, I suspect they will resign a few, sell a couple and let a couple go on free. The model is not one like ours. Their model involves purchasing players prior to their peak and hopefully coaching them up a little and fitting them into the system to find value. As such, I expect they'll be looking to buy/promote some more players this season and next.
Distribution of Premier League prize money and TV earnings for the 2019/2020 season #mulive [@SwissRamble] pic.twitter.com/THTZ87sn1g— utdreport (@utdreport) August 12, 2020
Covid will favour clubs like Bayern and Utd who have huge commercial and broadcast revenues as well as sugar daddy clubs It will disadvantage those dependent on match day - so especially Arsenal (highest gate receipts) and especially Spurs (huge investment in new stadium and now no rev to show for it).