Rags Debt - Daily Mail & Panorama [Merged]

[Lucas North]

Some very insightful , informative posts by clued-up Blues on this thread , they all seem to be going straight over the tame rag bumbles head ,though .

Unless he is doing a very good impression of an Ostrich and burying his head in the sand on purpose .

Leveraged Buy-Outs usually end in tears before bed-time, particularly in todays economic climate .

 

[sam221985]

The way I see it, they aren't going to ever go bust, and this debt might not in itself drag them down - but what it does mean is one wrong move, and their ability to pick themselves back up to the top is severely affected.

A season without Champions League, maybe even just another couple of seasons like this one, and it could be the start of a serious downward spiral that results in them becoming relative also rans for a while. That's the minimum that would happen.

Also when Fergiescum retires, they are suddenly no longer guaranteed to be able to keep papering over the cracks by achieving on the pitch. Mourinho could step into the breach comfortably, but at this rate he'd have relatively little money to spend, and all but the most deluded United fan knows he won't be the next Ferguson, he's a short term fix. And that's if they get him. Anyone else would be more likely than not, to have a tricky adjustment period, and that's where the footballing decline ideally sets in that is hard to pick themselves up from because money won't be there to propel them out of it.

 

[bumbles]

whos ignoring it ...do you not think that the fact over 150,000 people have joined IMUSA..the Fact a visible coordinated campaign is getting air time...the FACT match day protests are rasining question in the house of commons ...I would say that most fans are NOT sticking their heads in the sand..


As I say , the fans have porotested against the PLC sale in 1990, the murdoch takeover in 1998, the glazer take over in 1995...they didnt lay down like some .

So is Utd in a financial mess or not?

Its not a situation any fan would be happy with

 

[BufordUSABlue]

Just so that its crystal clear then.........

"Manchester United's owners will have to take tens of millions of pounds out of the club every year to pay off their expensive loans, an investigation into the Glazer family's finances has claimed.

In a programme to be screened on Tuesday night, BBC's Panorama says the Glazer family's debts total more than £1.1billion - £700million tied to Manchester United, £388million on mortgages for their First Allied shopping mall business in the United States and £66million tied to their Tampa Bay Buccaneers NFL team.

The Glazers say they are comfortable with the situation and that their assets total £2billion.

But investment analyst Andy Green, who investigated the Glazers' finances for Panorama, believes the Glazers have no option but to raid United's coffers to pay off the payment in kind loans - PIKs - which total £220million.

These PIKS carry a 16.25% interest rate and unless any payments are made these loans will spiral to £600million by 2017.

Green, a United fan, said: "This is not meant to be scaremongering - the Glazers have a stark choice to pay off the PIKs or risk losing the club.

"What I care about is Manchester United being used as a piggy bank to pay off loans instead of money being invested in the team.

"That is even more important with Manchester City, Chelsea, Barcelona and Real Madrid spending money like it's going out of fashion.

"The money the Glazers make from First Allied and the Buccaneers is totally inadequate to deal with the PIKs - only Manchester United can provide the money to deal with those."

Green said the £500million United bond issue in January now allowed the Glazers to take money out of the club where as previous bank loans had not allowed them to do so.

The investigation will give impetus to the 'green and gold' campaign being run by some United fans against the Glazers' ownership.

There is also a proposed takeover by a group of wealthy United fans known as the Red Knights, though no bid has materialised and the Glazers insist they have no intention of selling the club.

In March, United chief executive David Gill insisted the club's debts were easily covered by the income.

He said then: "We have an element of the debt that is very easily serviced by the cashflows of Manchester United, we are in a sport that is getting bigger all the time and as one of the leading clubs we should benefit from that growth.

"We believe we have a much more appropriate and flexible financial structure in place.

"In an ideal world people would like to not have a mortgage on their house but that doesn't mean they don't enjoy the benefits of living in that house and can't afford that house."

He also insisted the £80million transfer fee from the sale of Cristiano Ronaldo was still available for manager Sir Alex Ferguson to spend on top players.

A spokesman for the Glazer family was unavailable for comment.............BFAAAAAAA HAAAAAAAAA Go figure !!

Yes...........it is sad that this 'famous club' with all their 'history' are now well and truly ..........FOOKED !!

TICK TOCK you Green and YELLLOW clowns!!

 

[samharris]

The way I see it, they aren't going to ever go bust, and this debt might not drag them down - but what it does mean is one wrong move, and their ability to pick themselves back up to the top is severely affected.

A season without Champions League, maybe even just another couple of seasons like this one, and it could be the start of a serious downward spiral that results in them becoming relative also rans for a while. That's the minimum that would happen.

Also when Fergiescum retires, they are suddenly no longer guaranteed to be able to keep papering over the cracks by achieving on the pitch. Mourinho could step into the breach comfortably, but at this rate he'd have relatively little money to spend, and all but the most deluded United fan knows he won't be the next Ferguson, he's a short term fix. And that's if they get him. Anyone else would be more likely than not, to have a tricky adjustment period, and that's where the footballing decline ideally sets in that is hard to pick themselves up from because money won't be there to propel them out of it.

They will never go bust it's true,but they will find it a lot harder to stay at the very top year in year out.. :)

 

[KentBlue]

He also insisted the £80million transfer fee from the sale of Cristiano Ronaldo was still available for manager Sir Alex Ferguson to spend on top players.

Ha ha ha! Ha ha. Ha ha.

Absolutely incredible!

 

[Clevers]

There are also rumours that the Glazers are going to transfer the training ground, as an asset, to themselves and then lease it back to the club,

 

[Matty]

He also insisted the £80million transfer fee from the sale of Cristiano Ronaldo was still available for manager Sir Alex Ferguson to spend on top players.

Ha ha ha! Ha ha. Ha ha.

Absolutely incredible!

Gill is essentially the Glazer's puppet at this stage. Everyone, including the most biased of United fans, is well aware the majority of the £80m received for Ronaldo was used to pay off interest on the PIK notes. There's no way Fergie will see anything like £80m to spend on new players, that's why he's brought in a guy no-ones heard of from Fulham and a guy no-one's heard of from Mexico.

 

[bumbles]

Ha ha ha! Ha ha. Ha ha.

Absolutely incredible!

Gill is essentially the Glazer's puppet at this stage. Everyone, including the most biased of United fans, is well aware the majority of the £80m received for Ronaldo was used to pay off interest on the PIK notes. There's no way Fergie will see anything like £80m to spend on new players, that's why he's brought in a guy no-ones heard of from Fulham and a guy no-one's heard of from Mexico.

like the noone knew
Evra
Vidic
Nani
etc..

or the past it
Van der sar
sheringham
blanc
etc..


although fergie has made a few mistaks..you cant really questions his judegement on players...to do so makes you look very silly

 

[Matty]

Gill is essentially the Glazer's puppet at this stage. Everyone, including the most biased of United fans, is well aware the majority of the £80m received for Ronaldo was used to pay off interest on the PIK notes. There's no way Fergie will see anything like £80m to spend on new players, that's why he's brought in a guy no-ones heard of from Fulham and a guy no-one's heard of from Mexico.

like the noone knew
Evra
Vidic
Nani
etc..

or the past it
Van der sar
sheringham
blanc
etc..


although fergie has made a few mistaks..you cant really questions his judegement on players...to do so makes you look very silly

Bellion
Djemba-Djemba
Kleberson
Veron
Forlan

All Fergie signings. All flopped.

And as for "noone knew", Evra?!!! Would that be French International defender Patrice Evra who received his first cap 2 years before joining United? Oh yes, he was a total no-one before United got their hands on him..............now who looks silly?