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

[fbloke]

This is priceless from Woodward:

Man United's Ed Woodward tells investors that financial fair play rules are "starting to show their effectiveness in controlling key costs"

What key costs are they controlling Ed? You have the biggest wage bill in the country, have outspent your rivals for two years running and have the most expensive squad in the league!

They save on win bonuses and pay-outs for trophy wins?

 

[aguero93:20]

This is priceless from Woodward:

Man United's Ed Woodward tells investors that financial fair play rules are "starting to show their effectiveness in controlling key costs"

What key costs are they controlling Ed? You have the biggest wage bill in the country, have outspent your rivals for two years running and have the most expensive squad in the league!

They save on win bonuses and pay-outs for trophy wins?

Don't forget the transport for European away ties (just Swansea this year), the CL draw (no reason to attend) and the maintenance on the open top bus (Dipperpool bought it off them last year, God only knows why).

 

[TheBlueDune]

Re: City & FFP (continued)

This is priceless from Woodward:



What key costs are they controlling Ed? You have the biggest wage bill in the country, have outspent your rivals for two years running and have the most expensive squad in the league!

They save on win bonuses and pay-outs for trophy wins?

Don't forget the transport for European away ties (just Swansea this year), the CL draw (no reason to attend) and the maintenance on the open top bus (Dipperpool bought it off them last year, God only knows why).

And silver polish

 

[ancoats]

They save on win bonuses and pay-outs for trophy wins?

Don't forget the transport for European away ties (just Swansea this year), the CL draw (no reason to attend) and the maintenance on the open top bus (Dipperpool bought it off them last year, God only knows why).

And silver polish

and candles don't forget them

 

[dasblues]

It's amazing isn't it.

Gross debt is £400mill and rising, and UEFA aren't interested.

Their gearing ratio (debt / debt + equity) is still within an acceptable tolerance level of 50% though, so shouldn't be a concern.

The debt situation is a complete red herring that people use to try and beat them with. It means fuck all.

In business it is widely accepted that debt is the cheapest form of finance (beween debt & equity) as you get tax savings on the debt interest.

Businesses that operate with no debt are not pursuing the best strategy to maximise shareholder wealth.

The problem is people compare our debt situation with theirs , but the stakeholders in each club are in it for entirely different reasons. The sheikh isnt bothered about returns so is happy to fund the club on equity alone. The Glazers are using Utd as a cash cow so want to extract maximum value.

 

[aguero93:20]

It's amazing isn't it.

Gross debt is £400mill and rising, and UEFA aren't interested.

Their gearing ratio (debt / debt + equity) is still within an acceptable tolerance level of 50% though, so shouldn't be a concern.

The debt situation is a complete red herring that people use to try and beat them with. It means fuck all.

In business it is widely accepted that debt is the cheapest form of finance (beween debt & equity) as you get tax savings on the debt interest.

Businesses that operate with no debt are not pursuing the best strategy to maximise shareholder wealth.

The problem is people compare our debt situation with theirs , but thethe stakeholders in each club are in it for entirely different reasons. The sheikh isnt bothered about returns so is happy to fund the club on equity alone. The Glazers are using Utd as a cash cow so want to extract maximum value.

What about Chelski then, they're in debt to the tune of over £1billion and they aren't exactly worth much.

 

[dasblues]

It's amazing isn't it.

Gross debt is £400mill and rising, and UEFA aren't interested.

Their gearing ratio (debt / debt + equity) is still within an acceptable tolerance level of 50% though, so shouldn't be a concern.

The debt situation is a complete red herring that people use to try and beat them with. It means fuck all.

In business it is widely accepted that debt is the cheapest form of finance (beween debt & equity) as you get tax savings on the debt interest.

Businesses that operate with no debt are not pursuing the best strategy to maximise shareholder wealth.

The problem is people compare our debt situation with theirs , but thethe stakeholders in each club are in it for entirely different reasons. The sheikh isnt bothered about returns so is happy to fund the club on equity alone. The Glazers are using Utd as a cash cow so want to extract maximum value.

What about Chelski then, they're in debt to the tune of over £1billion and they aren't exactly worth much.

Chelsea aren't very open and transparent so they dont publish their financial statements online ie we cant see their balance sheet to establish weather the £1bn you quote is a liabilty or equity

Unless you know different?

 

[inbetween]

It's amazing isn't it.

Gross debt is £400mill and rising, and UEFA aren't interested.

They are in a very strong borrowing position though, every club operates with some level of debt. You would have to be mad not to lend to them given you are guaranteed your money back on the revenue they make, it does obviously come with risks but it is a much safer bet then you would think.

FFP allows for debt because the debt repayment is leveraged against revenue like any expenditure and providing their profit/loss is within FFP limits it is irrelevant. This happens at every club in Europe, the only exception are those like ours who are able to convert debt to equity which is what the Sheikh does, he 'lends' us money and converts it into a share of the club. He already owns 100% obviously but the value of that 100% increases. The Glazers will not do this because they want to harvest dividends from their revenue, doing what the Sheikh does requires cash so it would mean they would have to cough up.

 

[aguero93:20]

Their gearing ratio (debt / debt + equity) is still within an acceptable tolerance level of 50% though, so shouldn't be a concern.

The debt situation is a complete red herring that people use to try and beat them with. It means fuck all.

In business it is widely accepted that debt is the cheapest form of finance (beween debt & equity) as you get tax savings on the debt interest.

Businesses that operate with no debt are not pursuing the best strategy to maximise shareholder wealth.

The problem is people compare our debt situation with theirs , but thethe stakeholders in each club are in it for entirely different reasons. The sheikh isnt bothered about returns so is happy to fund the club on equity alone. The Glazers are using Utd as a cash cow so want to extract maximum value.

What about Chelski then, they're in debt to the tune of over £1billion and they aren't exactly worth much.

Chelsea aren't very open and transparent so they dont publish their financial statements online ie we cant see their balance sheet to establish weather the £1bn you quote is a liabilty or equity

Unless you know different?

It's a liability, owed to Roman Abramovich by their holding company, whose financial statements are available from Companys House.

 

[blueparrot]

Their gearing ratio (debt / debt + equity) is still within an acceptable tolerance level of 50% though, so shouldn't be a concern.

The debt situation is a complete red herring that people use to try and beat them with. It means fuck all.

In business it is widely accepted that debt is the cheapest form of finance (beween debt & equity) as you get tax savings on the debt interest.

Businesses that operate with no debt are not pursuing the best strategy to maximise shareholder wealth.

The problem is people compare our debt situation with theirs , but thethe stakeholders in each club are in it for entirely different reasons. The sheikh isnt bothered about returns so is happy to fund the club on equity alone. The Glazers are using Utd as a cash cow so want to extract maximum value.

What about Chelski then, they're in debt to the tune of over £1billion and they aren't exactly worth much.

Chelsea aren't very open and transparent so they dont publish their financial statements online ie we cant see their balance sheet to establish weather the £1bn you quote is a liabilty or equity

Unless you know different?

If I understand it correctly the debt was moved to the holding company and is interest free but would have to be repaid if notice given.