maths with the glaziers

[Prestwich_Blue]

So if the rags are in so much debt, is it because they are merely in the sky top 4 they dont get jumped on by administrators or whatevers normally nessecary and will happen to most other clubs in england, or is there an agreement or anything which disables this happening?
Man this is becoming more like question time with me. Apologies! haha

Their income is so large that they can currently meet their repayments. No banker would put a company into administration while they can do this. But if their income drops dramatically (i.e. they don't qualify for the CL) then the banks might start to get nervous as this could cost the rags over £40m taking gate receipts, sponsorship & CL money into account.

The deal with the P-i-K notes is that they have to meet certain financial targets. If they don't then the hedge companies can take some of the shares and put their people onto the board. Hedge funds cut costs ruthlessly in companies they take over so anyone saleable would potentially go and the stadium would presumably be sold and leased back.

 

[Fesan]

Wanna see some real debt?

<a class="postlink" href="http://www.brillig.com/debt_clock/" onclick="window.open(this.href);return false;">http://www.brillig.com/debt_clock/</a>

US debt to the world bank, increases by about 3,9 billion dollars PER DAY and is currently larger than one national budget.

Next time you talk to an american and he tells you EU 'owes' the US after all the Marshall plan (US gave EU countries about 13 billion in economical and technical help after ww2) you know what to respond.

Sure we'll pay you the 13 billion + interest if you pay the 12000 billion you owe... woman

On another note the Marshall plan was also seen as a sound investment from the US which they have profited tons of money from, they made sure that the EU countries could build themselves back up and start buying consumerproducts from the US.

 

[BlueTG]

Thanks for the information and help understanding, appreciated :)

 

[Pigeonho]

Just has an email off the missus saying she wants 'Katie time' tonight. if that Katie time lasts what, 10 minutes?, it means that by the time i've finished with her united will be £760 more in debt. Tonights 'Katie time' is going to be the most pleasurable yet!

 

[Sultana of Brunei]

Just has an email off the missus saying she wants 'Katie time' tonight. if that Katie time lasts what, 10 minutes?, it means that by the time i've finished with her united will be £760 more in debt. Tonights 'Katie time' is going to be the most pleasurable yet!

The fact is that by the time I have finished "Missus time" they will only have accrued 47p more debt.

 

[fbloke]

Just has an email off the missus saying she wants 'Katie time' tonight. if that Katie time lasts what, 10 minutes?, it means that by the time i've finished with her united will be £760 more in debt. Tonights 'Katie time' is going to be the most pleasurable yet!

How much is that per 'stroke'?

I would last a lot longer thinking about that sort of stuff on the job, but what you suggest it could be over for Katie far too quickly ;-)

 

[ifiwasarichfan]

Really enjoying this thread.

That much in fact I am going back to the OP and going to read it all again.

When I get to the last post on the thread I will calculate how much more debt the Rags have got in since I read the OP.

Are we ready; 3 2 1 go.

 

[Pigeonho]

Just has an email off the missus saying she wants 'Katie time' tonight. if that Katie time lasts what, 10 minutes?, it means that by the time i've finished with her united will be £760 more in debt. Tonights 'Katie time' is going to be the most pleasurable yet!

How much is that per 'stroke'?

I would last a lot longer thinking about that sort of stuff on the job, but what you suggest it could be over for Katie far too quickly ;-)

Right, so with position flipping being taken into account during those 10 mins, and me needing 'a breather', I estimate roughly 100 strokes, giving a grand total of £7.60 per stroke.

 

[Chris in London]

Their income is so large that they can currently meet their repayments. No banker would put a company into administration while they can do this. But if their income drops dramatically (i.e. they don't qualify for the CL) then the banks might start to get nervous as this could cost the rags over £40m taking gate receipts, sponsorship & CL money into account.

They are, in other words, having to sprint like fuck to stand still.

Not that I'm obsessed with their plight, but if you look at their squad, some key figures are getting long in the tooth - Van Der Sar, Giggs Scholes and Ratface Chuckle. Ronaldo and Tevez show that they can no longer compete with the wealthiest clubs for the best players. They are, it seems to me, at the top of a long and slippery slope.

[sighs blissfully]

 

[Prestwich_Blue]

I've got an update and it's even worse (or better) than I originally thought. This is an extract from a report that the Manchester United Supporters Trust prepared last year:

Since last year's debt refinancing, United and the Glazers have been faced with a series of interest rate rises which have increased the annual debt service bill from £62m a year on the total debt of £660m. The interest bill is currently an annualised £100m-plus, of which £73m is payable this year and the other £27m in the future — a ticking debt time-bomb.

The Trust report claims the debt is split into five separate loans.

The first loan of £75m was borrowed over seven years at a current interest rate of 8.81 per cent — producing annual interest bill of £6.61m.

The second of £150m, borrowed over eight years at a current interest rate of 9.31 per cent, produces interest of £13.97m. The third, also of £150m, over nine years at 9.69 per cent, is running up an annual interest bill of £14.53m.

Another 10-year £150m loan at 12.19 per cent is producing £18.28m annual interest, while the final £135m "Payment in Kind" loan is costing £23.3m in interest, although it is not payable this year.

On top of that, City experts estimate United will pay at least another £24m in capital repayments, bringing the total to more than £100m.

But the club still manage to make huge profits and there are forecasts of operating profits of £90m for the year ending 2007. This is due mainly to staggering gate receipts of around £87m, a £14m-a-year sponsorship deal with US insurance giants AIG and the Premier League's TV deal.

So their interest bill is probably over £100m a year, double what we thought.