City & FFP | 2020/21 Accounts released | Revenues of £569.8m, £2.4m profit (p 2395)

[SilverFox2]

LOL. You have to think ahead.

I think Sheikh M's experience with investing in many sectors of business and industry has allowed him to create his version of a complete Business Plan to successfully enter the PL football ownership business from scratch.

My personal wish is that he has part ownership or some sort of investment within the USA based 'Bank' that receives the interest from the Glazer's MUFC borrowings.

 

[BlueAnorak]

I think Sheikh M's experience with investing in many sectors of business and industry has allowed him to create his version of a complete Business Plan to successfully enter the PL football ownership business from scratch.

My personal wish is that he has part ownership or some sort of investment within the USA based 'Bank' that receives the interest from the Glazer's MUFC borrowings.

Well I have it on good authority from a friend who works in the City on short term high risk finance that as a result of Utd's role in setting up FFP Utd converted the PIK notes to a new loan because there was real concern that our owner would buy the PIK notes (or achieve leverage over the institutions owning the PIK notes) and demand instant repayment.
Don't take a knife to a gun fight is my comment on that one.

 

[SPIDERBOY]

Well I have it on good authority from a friend who works in the City on short term high risk finance that as a result of Utd's role in setting up FFP Utd converted the PIK notes to a new loan because there was real concern that our owner would buy the PIK notes (or achieve leverage over the institutions owning the PIK notes) and demand instant repayment.
Don't take a knife to a gun fight is my comment on that one.

Can you explain that a bit more for me please mate?

 

[mancity dan]

Well I have it on good authority from a friend who works in the City on short term high risk finance that as a result of Utd's role in setting up FFP Utd converted the PIK notes to a new loan because there was real concern that our owner would buy the PIK notes (or achieve leverage over the institutions owning the PIK notes) and demand instant repayment.
Don't take a knife to a gun fight is my comment on that one.

That would have been hilarious if that had happened. If he had owned the PIK notes he could ask for repayment at any time.

 

[gordondaviesmoustache]

Can you explain that a bit more for me please mate?

In short; choose your battles :-)

 

[SPIDERBOY]

In short; choose your battles :-)

I know that bit mate.im on about these "pik notes".....our owner buys the "pik notes"....the rags then "owe" our owner,is that right?
Would that be legally allowed with him owning city?

 

[JoeMercer'sWay]

Can you explain that a bit more for me please mate?

In short, United had a form of debt that the owner of that debt could ask for immediate repayment from. Thus, if that had happened, United would have been up shit creek having to repay huge sums of money in one shot. What he's saying is United feared Sheikh Mansour could have screwed them under FFP by buying the debt of the holders and asking for immediate repayment, so United converted that debt into alternate forms to negate that threat.

 

[SPIDERBOY]

In short, United had a form of debt that the owner of that debt could ask for immediate repayment from. Thus, if that had happened, United would have been up shit creek having to repay huge sums of money in one shot. What he's saying is United feared Sheikh Mansour could have screwed them under FFP by buying the debt of the holders and asking for immediate repayment, so United converted that debt into alternate forms to negate that threat.

TA.

 

[SilverFox2]

Well I have it on good authority from a friend who works in the City on short term high risk finance that as a result of Utd's role in setting up FFP Utd converted the PIK notes to a new loan because there was real concern that our owner would buy the PIK notes (or achieve leverage over the institutions owning the PIK notes) and demand instant repayment.
Don't take a knife to a gun fight is my comment on that one.

I've mentioned the following before but I think it was the last MUFC set of financial results that incurred an extra cost of several million pounds simply because the sterling > dollar exchange rate changed (as it always does).

Perhaps they could not get a forward rate or they gambled with MUFC money but why repay spot when a forward buy would secure certainty ?
On reflection they probably allowed MUFC to take the risk of extra cost and would have siphoned off the cash if the exchange rate benefited them financially.
Imagine having owners like that.

 

[BlueAnorak]

The story goes like this...
For a while Utd were looking to convert the PIK notes to a more 'sustainable' debt as the interest rate was killing them and the point of repayment was beginning to loom. Worse, the arrival of City on the scene as a real player meant they had to spend lots more money on transfers than previously intended. Worst of all the US property market crash meant the Glazers ONLY money making asset was Utd and they needed cash.
The Glazer family were going from one financial institution to another getting the same answer - i.e. no cash at a lower interest rate without the Glazers handing over voting stock. This was the last thing they wanted as it would expose the fact that the Glazer family were in reality close to bankruptcy.
They willingly jumped aboard the UEFA FFP Cartel to try and stop us but immediately, financial institutions with minor ties (let alone) major ties to the UAE suddenly started assigning them 'bargepole' status. They rapidly came to the conclusion that our owner and his oppos WERE out to get them and panicked like crazy they even assumed our owner would attempt to buy the PIK (Payment-In-Kind) notes and demand immediate repayment (which is one of the problems this type of loan). - I doubt our owners cared to be honest as a strongish Utd with a semblance of competition is probably part of their business plan.
This paranoia led quickly to the sale of non-voting stock to 'suckers' in the US as it was identified as pretty much there last hope without losing control of the Utd money making machine.
Subsequently sufficient suckers did bite so they could get rid of the PIK notes - but to nowhere near the level of uptake they expected. As a result they still have financial problems competing with us. Players are not bought with cash they are paid yearly in areas etc, etc.