one of the lads i play golf with (a rag) just after our take over and more or less every time i see him says to me "it will all end in tears"
i sent him the piece from the guardian by David Conn <a class="postlink-local" href="http://www.bluemoon-mcfc.co.uk/forum/viewtopic.php?f=1&t=157242" onclick="window.open(this.href);return false;">viewtopic.php?f=1&t=157242</a>
any way this was his reply a bit long i know but how would you reply to this, sensible answers only thanks
"Yes, it is clear that the Glazers cannot hold on for much longer, that day will come sooner rather than later.
The point is though that as the worlds biggest and most commercially profitable club only united could survive this debt ridden business model.
Ultimately we will be sold and in the current climate it will not be a debt purchase (the banks will no longer fund such purchases).
Liverpool was probably the last club to be purchased with such a debt .
United will be bougt by a very wealthy organisation using equity and at a price which will just clear the Glazers debt, as this is the only escape route for the Glazers.
United and possibly Real Madrid are the only 2 clubs in the world who can service massive debt and any new purchaser will always get a profitable return on using their own money, so their is no real worry other than in the short term not much money being released for new players.
Coming back to City, they have just posted a record loss for a premier league club of over £90m, outstripping even Chelseas losses. These losses will increase next year to well over £100m due to the ever spiralling debt created by increasing salaries and inflated transfer fees. City have to pay over the odds salaries, transfer fees and agents fees to try and get quality players to what is a very small club in glabal terms.This will always be the case.
Now you will say that these losses do not matter because the Arabs convert the losses into equity each year and that is so until the day that they do not. That is when it will all end in tears because as Blackburn found out when their benefactor died, the revenues will never match their costs and when no one is there to bail out the losses ,then the ship will sink.
That is the big difference City will never produce a business model that produces more revenue than their inflated costs whereas United can and always will.
Chelsea are the perfect example for you, they have won the title twice amongst numerous other trophies and are stalwarts of the champions league yet they continue to post huge losses and Kenyon was sacked after admitting that they could never break even due to the club having no global fan base and thus commercial revenues as basically they have no history, L;iverpool and Arsenal are bigger global brands and Abramovich knows this and is now refusing to put in the ridiculous amounts of money he once did.
The Arabs are used to instant success and whilst City are clearly going to be more succesful with their money, they will soon tire and the day they leave is the day the Administrators move in!
Watch this space......"
i sent him the piece from the guardian by David Conn <a class="postlink-local" href="http://www.bluemoon-mcfc.co.uk/forum/viewtopic.php?f=1&t=157242" onclick="window.open(this.href);return false;">viewtopic.php?f=1&t=157242</a>
any way this was his reply a bit long i know but how would you reply to this, sensible answers only thanks
"Yes, it is clear that the Glazers cannot hold on for much longer, that day will come sooner rather than later.
The point is though that as the worlds biggest and most commercially profitable club only united could survive this debt ridden business model.
Ultimately we will be sold and in the current climate it will not be a debt purchase (the banks will no longer fund such purchases).
Liverpool was probably the last club to be purchased with such a debt .
United will be bougt by a very wealthy organisation using equity and at a price which will just clear the Glazers debt, as this is the only escape route for the Glazers.
United and possibly Real Madrid are the only 2 clubs in the world who can service massive debt and any new purchaser will always get a profitable return on using their own money, so their is no real worry other than in the short term not much money being released for new players.
Coming back to City, they have just posted a record loss for a premier league club of over £90m, outstripping even Chelseas losses. These losses will increase next year to well over £100m due to the ever spiralling debt created by increasing salaries and inflated transfer fees. City have to pay over the odds salaries, transfer fees and agents fees to try and get quality players to what is a very small club in glabal terms.This will always be the case.
Now you will say that these losses do not matter because the Arabs convert the losses into equity each year and that is so until the day that they do not. That is when it will all end in tears because as Blackburn found out when their benefactor died, the revenues will never match their costs and when no one is there to bail out the losses ,then the ship will sink.
That is the big difference City will never produce a business model that produces more revenue than their inflated costs whereas United can and always will.
Chelsea are the perfect example for you, they have won the title twice amongst numerous other trophies and are stalwarts of the champions league yet they continue to post huge losses and Kenyon was sacked after admitting that they could never break even due to the club having no global fan base and thus commercial revenues as basically they have no history, L;iverpool and Arsenal are bigger global brands and Abramovich knows this and is now refusing to put in the ridiculous amounts of money he once did.
The Arabs are used to instant success and whilst City are clearly going to be more succesful with their money, they will soon tire and the day they leave is the day the Administrators move in!
Watch this space......"