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maths with the glaziers
- Thread starter Chris in London
- Start date
without a dream
Well-Known Member
BlueTG said:BTW while on the financial side of things, can anyone clarify that we are not in any form of debt as a club? Because you get some dimwit rags who have never been to a PL game, and was arguing with one, and when i said at least were not 700m in debt, they were defiant City were aswell to my amusement of how stupid I thought he sounded..
I'm sure i've read that the Sheikh has gifted us the money, even if he hasn't I believe it's against the principles of Islam to charge or receive interest.
vonksbignose
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We STILL have NO DEBT!!!
;-)
;-)
Sultana of Brunei
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There was an article I read somewhere (I will try to dig it out) that said under their current financing the interest rate is just above 15% which is not untypical on such large amounts. To put that in perspective they would need to sell a 'Ronaldo' every year just to pay off that years interest. Given that they have no such asset then they will need to find other ways to bridge the gap.
The other possibility of course is that the Glaziers would have to sell the club but in the current environment there will be few investors brave enough to take on that mountain of debt.
It's easy to think how lucky we were to find our owners but we were even luckier to find them at the time we did i.e just before the global economy dipped so dramatically. Being debt free in todays financial climate is an extremely fortunate position to be in and whilst we have not yet turned over the established UK footballing order we have every chance given the financial position of United, Liverpool and perhaps Arsenal.
The other possibility of course is that the Glaziers would have to sell the club but in the current environment there will be few investors brave enough to take on that mountain of debt.
It's easy to think how lucky we were to find our owners but we were even luckier to find them at the time we did i.e just before the global economy dipped so dramatically. Being debt free in todays financial climate is an extremely fortunate position to be in and whilst we have not yet turned over the established UK footballing order we have every chance given the financial position of United, Liverpool and perhaps Arsenal.
allan harper
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The title of this thread should win an award.
Chris in London
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if the debt is 800m at 14%, the numbers work like this
annual interest on debt = £112m (PMSL at that one)
daily rate of interest = £306,849
per hour = £12,785
per minute = £213
per second = £3.55
My journey home from work takes about an hour and 10 mins. By this reckoning, in that time the rags debt will have increased by £14,910.
It isn't just Carol Vorderman and Johnny Ball who can make maths fun.
annual interest on debt = £112m (PMSL at that one)
daily rate of interest = £306,849
per hour = £12,785
per minute = £213
per second = £3.55
My journey home from work takes about an hour and 10 mins. By this reckoning, in that time the rags debt will have increased by £14,910.
It isn't just Carol Vorderman and Johnny Ball who can make maths fun.
yes im sure i read that aswell, some rags just wont accept the truth if it smacked them square on driving a freight train.without a dream said:BlueTG said:BTW while on the financial side of things, can anyone clarify that we are not in any form of debt as a club? Because you get some dimwit rags who have never been to a PL game, and was arguing with one, and when i said at least were not 700m in debt, they were defiant City were aswell to my amusement of how stupid I thought he sounded..
I'm sure i've read that the Sheikh has gifted us the money, even if he hasn't I believe it's against the principles of Islam to charge or receive interest.
And true it is against their religion, i should know as i study religious studies at college haha ;) (mistake!) but i didnt think they were Muslims?
bluemoon05
Well-Known Member
We are in no debt to Sheik Mansour.
Prestwich_Blue
Well-Known Member
There's two different types of debt they have.
The first is ordinary bank loans totalling £425m and they're probably paying at least 7.5% on those. These are secured aganst their tangible assets (i.e. Old Trafford & Carrington) but these assets are probably worth less than £300m so don't provide 100% coverage. So the payments on that would be around £32m a year or £0.65m a week. That would pay the wages of around half-a-dozen world-class players.
The other element is £175m of what are known as Payment-in-Kind notes. These are unsecured and they are paying 14.5% on these. The interest is rolled up into the capital instead of actually being paid every year. So the debt is increasing year-on-year by around £25m a year or £0.5m a week as they owe this money to the hedge-fund companies that provided this finance.
Added together this means they are paying over £1m a week in interest and probably nothing off the capital at the moment. When they have to start paying off the capital, that's when they're really screwed.
The first is ordinary bank loans totalling £425m and they're probably paying at least 7.5% on those. These are secured aganst their tangible assets (i.e. Old Trafford & Carrington) but these assets are probably worth less than £300m so don't provide 100% coverage. So the payments on that would be around £32m a year or £0.65m a week. That would pay the wages of around half-a-dozen world-class players.
The other element is £175m of what are known as Payment-in-Kind notes. These are unsecured and they are paying 14.5% on these. The interest is rolled up into the capital instead of actually being paid every year. So the debt is increasing year-on-year by around £25m a year or £0.5m a week as they owe this money to the hedge-fund companies that provided this finance.
Added together this means they are paying over £1m a week in interest and probably nothing off the capital at the moment. When they have to start paying off the capital, that's when they're really screwed.