Prestwich Blue is "on the money" here, to "coin" a phrase (double pun - ouch!)
Ushited's capital structure and funding model is extermely risky and predicated upon continueing and growing cashflow.
Any reduction in commercial revenue, reduction in gate receipts etc will place them under huge strain.
Poor results on the field would cause even bigger financial strain - probably fairly quickly (fans are fickle - read some of the threads on here if you do not believe me!).
The argument that it is no big deal because a business angel / rich investror with equity colud come along and buy out the great Manyoo and make a killing is also flawed - any equity investor would need to put in close to 1.5 Billion in order to settle the debt and provide working capital.
Investors with that sort of money are not fools - they would want a guaranteed return of the risk-free rate plus a good few percentage points to cover the risk premium - well over 10% in total .
This implies that Ushited would have to generate nett earnings of 150 million for this investor - they are nowhere near this number and have little prospect of getting there soon.
The alternative would be for the Glazers to sell at a discount / loss, in which case the new investor would need a lower earnings level in order to get an acceptable rate of return.
There is no chance of that happening - the Glazers will hang on until their hand is forced.
Bottom line - Ushited ARE in the poo, and it is NOT going to be easy OR QUICK for them to get out of it.
Those who say "ah but Ushited have been very successful under the Glazers" do not understand that this is true but the sustainability of that success is highly improbable.
Baconface is lying when he suggests that the money from the sale of Ronaldo, or even half of it is available for him to use in the transfer market.
.........Just as he lied about playing his "kids" against us.
By the way, Ushited's own analysts estimate that revenues from their "135 million overseas fanbase" account to around 2% of the total.
The seeds of United's demise were sown when they got greedy and went public (listed on the stock exchange).
The Glazer (hostile) takeover has thrown fertiliser onto those seeds and put an irrigation system in place.
This year, we have started to see the first green shoots push out of the ground.
Tick, tock.............................
