Glazer/United Continued Again

u are an idiot...

1. the interest on the debt is greater than the profits the club turned last year... just the bloody interest!
2. the money will go to paying the interest... not the debt.
3. freed up his cashflow to reinvest in the company? What the hell needs fixing at the club other than player purchases? Which, we could have used most, or all of our profits on prior to being debt laden.

 

Another economic expert gives his opinion that the Gl*zer takeover is not financially viable.

Glazer sums 'fail to add up'

 

The only problem with all the opinions (and I'm not a Glazer defender) is that no one, aside from the Glazer family and maybe the rest of the United board, know what the plan really is.

It cannot be contested, using past revenues as a guide, that the team cannot be profitable after paying the interest on the debt. (As an aside, JB was technically correct in stating that debt is repaid through revenues not profits.) Therefore, Glazer should (must?) have a plan to do one or more of the following; increase revenue, decrease expenses and/or raise capital.

According to Joel, revenue will not be increased by selling OT, selling players or selling TV rights outside of the current contract. Expenses will not be reduced by selling expensive players and buying cheap replacements. Therefore, the plan, if there is one, probably includes raising capital. One way to do this is to sell a minority interest in the team.

I'm not certain what the answer is and I agree that the huge debt is troublesome. But until the whole picture can be seen, it is impossible to know if there is a way to make it work, as unlikely as it seems.

 

JUST GIVE ME YE GOLD!!!

 

I understand what you guys are saying about paying down the principal on the loans, but the fact of the matter is that he may have negotiated an interest only loan. He may have a 10 year note wherein he only pays the interest on a monthly basis and at the end there is a balloon payment of all the principal. WHat Mr. Glazer can do, very easily is refinance the loans in a couple of years for the best loan to value he can get for the asset. Lets say the value goes up from 790 million to 1 billion, he can refinance and pocket the additional funds he will have, and/or reinvest them in the asset. In this case it wold be for players or the youth program or whatever the manager see fit at the time.
In the meantime, he is only paying down the interest and will have additional cashflow to do whatever he needs to do vis a vis the product on the field. that is why you finance the purchase instead of putting the full 790 milion in yourself. If you do that you have taken away all your "spending money".

 

I'm confused as to your logic, I personally could care less if ManU are relegated by you have a lot of "he mays" in your ideas. Do you even watch the news?

The debt structure has been pretty clearly detailed and there are some huge interest payment due in the first three years. They don't loan that kind of money with out some huge kickers. The interest rate on the first three years has already been set and the numbers ran by people smarter than you or I. Hell, you thought they could save money by not having to pay dividends, a nice idea, but your were clueless to the fact that they never paid dividends. The profits from the last year was the money left after paying salaries and some improvement to OT, not a penny was spend or given to anyone else.

ManU are screwed baring some remarkable business plan that is not been revealed to anyone, save the lenders. There is just not other way to look at this.

 

Incorrect.

see bottom paragraph

or here

 

I'm not even going to pretend I understand half of what you said but loan details are here if you're interested.

looks like £570M over ten years + £383.9M additional costs/charges.

 

An interesting article for you ManU fans:
http://football.guardian.co.uk/News_Story/0,1563,1526100,00.html

 

"Still, Manchester United fans are going to have to get used to the family owning "their" team. They are not going anywhere and they are not particularly interested in explaining themselves to you."

 

Hmmm.....Daniel Ruth....where have I seen that name before?

P.S: Do they really pay columnists to write trash like that?

 

"...if the elder Glazer owns ManU for the next 20 years he will probably set foot in the old sod about as often as the Argentine Army Falklands War Veterans Association."


LOL

 

C'mon, who could forget a face like this...

 

Put a beard on him he could be Mini Gayslur.......

 

Oh be nice...

 

Tsk tsk...high school must have been a rough time for him.

 

Well there you have it folks a history of broken promises and don't give a ******** attitude.

Sports fans are nothing but moronic money dispensing machines.

But the small problem of promotion relegation might be an issue, unless there is a way to avoid it?

So how much money does the Man U brand make before a fan sits in a seat?

 

Because of their poor finances, Torino and Messina have been booted out of Serie A in Italy. It's an extreme example, but there is clearly the precedent now for clubs that get into deep debts, regardless of their performances on the field.

 

and yet, strangely, I recieved my dividend check!

 

You have to understand. His post was in response to mine and he was trying to discredit my post, because he didn't agree with it. Instead of arguing on the merits of the facts, most of the people on here choose to make things up and lie and begin name calling and other tactics to take the attention away from the argument.

 

JB ... really ... take a deep breath and get over yourself. Do you honestly expect a true Manchester United fan to view your objective business view of the United takeover as seeing the light and then thank you for your insight??

 

Broken promise number 1, so says Chelski's John Terry:

Oh.... puhleeeeaaase.

 

I think John took one header too many last season. Wright Phillips is no where near Rooney's ability. Not close!

 

I don't know which EPL Terry's been watching but SWP can't match Rooney in physical ability, shooting ability, passing ability, or ball handling ability.

So I really am wondering which ability he was talking about

 

Just trying to make a 20m bench-warmer feel good.