There has been plenty of talk over the last few days about CIty's finances and the upcoming limitations of the FFPR.
I think we can all accept that City will get through OK as the owner and board at City are the best in the business (and of course the wealthiest).
But I was wondering exactly how United would get along.
For the purposes of FFPR we ignore the debt of course and only consider the interest payments they have to make.
As I understand things the debts are increasing and as such the interest burden is getting larger, therefore it is only going to get worse for the cash that it sucks out of the club :-(
Last year they made a loss prior to the sale of Ronaldo, but an OK profit once that was added in.
However they have also just taken 50% of their new main sponsorship deal (AON) as an upfront payment which means there will be less coming in for the remaining years of the contract.
Revenues are sliding and the stadium in Trafford is no longer a sell-out each match.
Corporate revenues are according to one person I know about 15% down on the year before.
Now that we are into the run-in period for FFPR it seems United are looking at losses in each of the 3 financial periods before a decision will be made on United's european licence.
Of course as long as the owners of the business can show they have a sustainable business model all will be OK for them.
And then there is the opportunity for an owner to inject cash in a cash/equity swap to cover losses.
In short United fans are probably thinking the massive turnover they have will keep them in the hunt until another owner pops along and clears the debt.
But in reality there really is a clock ticking louder by the day as for every game they dont sell every ticket, sell a shirt to a japanese tourist, or not flog the full compliment of pies (mmmmm pies) then they are falling further behind the break even point.
Shame that really isnt it?
I think we can all accept that City will get through OK as the owner and board at City are the best in the business (and of course the wealthiest).
But I was wondering exactly how United would get along.
For the purposes of FFPR we ignore the debt of course and only consider the interest payments they have to make.
As I understand things the debts are increasing and as such the interest burden is getting larger, therefore it is only going to get worse for the cash that it sucks out of the club :-(
Last year they made a loss prior to the sale of Ronaldo, but an OK profit once that was added in.
However they have also just taken 50% of their new main sponsorship deal (AON) as an upfront payment which means there will be less coming in for the remaining years of the contract.
Revenues are sliding and the stadium in Trafford is no longer a sell-out each match.
Corporate revenues are according to one person I know about 15% down on the year before.
Now that we are into the run-in period for FFPR it seems United are looking at losses in each of the 3 financial periods before a decision will be made on United's european licence.
Of course as long as the owners of the business can show they have a sustainable business model all will be OK for them.
And then there is the opportunity for an owner to inject cash in a cash/equity swap to cover losses.
In short United fans are probably thinking the massive turnover they have will keep them in the hunt until another owner pops along and clears the debt.
But in reality there really is a clock ticking louder by the day as for every game they dont sell every ticket, sell a shirt to a japanese tourist, or not flog the full compliment of pies (mmmmm pies) then they are falling further behind the break even point.
Shame that really isnt it?