Rags in financial trouble?

[LoveCity]

Would love to see that awful club crash and burn but it will never happen, they are too big and established, there will always be a way out of jail.

 

[waspish]

Basically they owe about £700m costing about £50m pa to service.

As long as they make regular payments on the more expensive bonds they should be OK.

However the cash they have been calling on to do that is diminishing at an alarming rate without huge expenditure on transfers.

The huge cash injection from the Ronaldo has also been burnt through.

Thought they reduced it to about 430m?

Some of the debt was disappeared but nobody knows how or where to.

Its generally accepted that it was re-financed rather than repaid.

Ok why would sky say this then? They said the rags debt is now reduced to 430m down 50m or something it was about 2 months ago or is it all propaganda from the rag half? You can shift the money around as much as you want it's still debt so don't understand why sky announced it down to about 430m

 

[Prestwich_Blue]

Ok why would sky say this then? They said the rags debt is now reduced to 430m down 50m or something it was about 2 months ago or is it all propaganda from the rag half? You can shift the money around as much as you want it's still debt so don't understand why sky announced it down to about 430m

That's the debt held by the club. There is almost certainly more but no one knows how much as that's held in US-based companies controlled by the Glazers and registered in Delaware, where they don't have to disclose any financial details.

 

[lloydie]

PB, I seem to recall that they had £100m cash stood in the bank, cant they dip into this or has it disappeared somewhere?

 

[fbloke]

Thought they reduced it to about 430m?

Some of the debt was disappeared but nobody knows how or where to.

Its generally accepted that it was re-financed rather than repaid.

Ok why would sky say this then? They said the rags debt is now reduced to 430m down 50m or something it was about 2 months ago or is it all propaganda from the rag half? You can shift the money around as much as you want it's still debt so don't understand why sky announced it down to about 430m

As Col' has just said the PIK note debt was always Glazer debt and not MUFC debt, however one is basically the other in this game of hide the debt.

The scenario is simple in my eyes.

The Glazers had hugely expensive PIK note debt they took on in order to finance the original purchase that every person knew they would have to deal with quite quickly as it was at about 14% above base.

All of a sudden it was announced that the £250m+ was gone even though the Glazers were basically insolvent other than the MUFC side of their business.

The question is then what happened to the debt, was it taken on by another 3rd party who may have an interest in United? There was a rumour that Qatar had done a secret deal once the company that owns United disappeared into the black hole that is Delaware.<br /><br />-- Fri Jan 13, 2012 11:24 pm --<br /><br />

PB, I seem to recall that they had £100m cash stood in the bank, cant they dip into this or has it disappeared somewhere?

***poof*** Its gone ;-)

 

[Prestwich_Blue]

PB, I seem to recall that they had £100m cash stood in the bank, cant they dip into this or has it disappeared somewhere?

Thst's the figure they report in the year end accounts and it was about 80m last time I think. It seems a lot but they've just had the prize money from the PL, the CL and income from season tickets, corporate seats and sponsors. Relatively little income comes in through the rest of the year. It's like you or me getting paid at the end of the month but then having to pay mortgage/rent, gas, electricity, council tax, petrol etc for the rest of the month. At the end of the next month you could be in overdraft and that's the same for football clubs.

So the cash is highest then and declines over the year. If you look at the graph on Page 6 of this thread for 09/10, you can see that quite clearly over the four quarters. So even they have to use overdraft facilities in the second half of the season.

 

[lloydie]

PB, I seem to recall that they had £100m cash stood in the bank, cant they dip into this or has it disappeared somewhere?

***poof*** Its gone ;-)

Oi, less of the homophobia fatty ;)

.....but I get what you're saying and the more labyrinthine the Glazer's twists, the more the rags squirm and the more I enjoy.<br /><br />-- Fri Jan 13, 2012 10:35 pm --<br /><br />

PB, I seem to recall that they had £100m cash stood in the bank, cant they dip into this or has it disappeared somewhere?

Thst's the figure they report in the year end accounts and it was about 80m last time I think. It seems a lot but they've just had the prize money from the PL, the CL and income from season tickets, corporate seats and sponsors. Relatively little income comes in through the rest of the year. It's like you or me getting paid at the end of the month but then having to pay mortgage/rent, gas, electricity, council tax, petrol etc for the rest of the month. At the end of the next month you could be in overdraft and that's the same for football clubs.

So the cash is highest then and declines over the year. If you look at the graph on Page 6 of this thread for 09/10, you can see that quite clearly over the four quarters. So even they have to use overdraft facilities in the second half of the season.

Cheers PB.

 

[Rammy Blue]

Gutted I've only just seen this thread.

How exciting, would love to see the media pick up on this one.

By the way, PB, have you had any further confirmation that all this is bang on true?

 

[scousemanc]

Standard and Poors, as expected, have downgraded France's debt rating today. Now then, who next...?

 

[LesBleuMiserable]

Remember all that crap about the Qatari's paying them 2 billion for the club and all that crap!! Wonder how much the Glazers had to pay for a publicity stunt like that when all credible sources in the middle east where saying that the Qatari's would not buy in England (hence Liverpool di not attract interest despite cheap price) as they did not want to compete with the Abu Dhabu owners! Qatari's bought in France instead!

Glazers then feelers for attempted 20% flotation in Singapore... the muppets again failed to realise whilst its popular to buy fake replica shirts in the far east as far as shares go for scum they aint buying!

Fergie even got a loyalty bonus for Glazer arse licking....proceeds of the Gibson sale?

hope these scum win nothing this season and will be the start of the rapid demise!

Could we call them the "quiet neighbours'!