U*****s financial mess

3.
No point scoffing at Utd's finances unless you know what you are talking about
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Follow why Lehman Bros was sunk and Akerlof's Theory 'The Market for Lemons'.
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Huh? The Market for Lemons? What asymmetric information exists in the marketplace for refinancing a football club? It's a one on one transaction that can involve all the due diligence necessary.

United have different problems I think. More likely they can't securitize their income stream because due diligence would reveal that the majority of their "fans" would switch their spending to buy Chelsea or Real Madrid shirts given half an excuse.
 
alera said:
Its in the mail for scum and scouse vermin. They owe so much money as % of operating profits they are basically factoring in finishing in the top 4 - every season for time and memorial, getting past the group stage of champions league, decent cup runs, big kit and advertising deals.

There is no contigency or margin for error it only takes a couple of things to go wrong as could well happen with Liverpool this season and its armagedeon - all best players sold to repay debts to a realistic level and the resultant downward spiral.

We have seen it ourselves at city over the past 30 years all be it with much much lower levels of debt (I think the peak was around £80 million at city with most of it in personal loans from the owners.)

Anyway the only long term solution is for a rich owner to come along but for both clubs you are looking for someone willing to spend in the order of £800 million to £1 billion - quite frankly in the curent enviroment who would want to do that ? Besides part of the fun for these people is building something for themselves. Happy days really.
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Good post. It basically boils down to money that may not be there. Bit like the credit crunch.

Even if it isn't us that do it I would love to see someone out of the Top 4 fall flat on their arse.
 
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law74 said:
But a goodrun in the FA cup with a lot oh home games and 74,000 sell out crowds, advertising revenue and prawn sandwich sales & no forgetting the TV revenue will help to ease the debt.......Oh wait, Leeds have just knocked them out
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Hahaha.

Hopefully this financial mess they are in results in a situation where over the next few seasons they have to gradually sell a number of their top players (There's only a few of them left anyway. Literally..) without being able to sign better replacements (i.e. Valencia - LOL) resulting in a slow, painful (And public) death and a long exile from the top four.

If Taggart has any sense he should call it a day at the end of this season, especially if they dont win anything as he wouldnt want to be associated with the Titanic like downfall they are hopefully headed for.

ICEBERG AHEAD!
 
you dont need to be a financial expert to know they are knackered. every money expert in the country has written about it. they cant refinance as all their collateral has already been used up. if glazer has other resources why does he borrow at over fourteen percent interest? no new lenders want an unsecured debtor in the footballing equivalent of the TITANIC (great analogy by the way). a new sugar daddy will need wel lover a billion to buy and develope them. why bother when newcastle or leeds for example are available at a fraction of the price.

Capt. GLAZER - "THIS SHIP IS UNSINKABLE?????"
 
bananamilksheikh said:
you dont need to be a financial expert to know they are knackered. every money expert in the country has written about it. they cant refinance as all their collateral has already been used up. if glazer has other resources why does he borrow at over fourteen percent interest? no new lenders want an unsecured debtor in the footballing equivalent of the TITANIC (great analogy by the way). a new sugar daddy will need wel lover a billion to buy and develope them. why bother when newcastle or leeds for example are available at a fraction of the price.

Capt. GLAZER - "THIS SHIP IS UNSINKABLE?????"
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Yes that is all true, but you havent factored in the potential to sell shirts in the far east, or the revenue that could come from them having their own Tv channel, or pricing out their core support to make wa for tourists from over here, singapore, london or anywhere else in the world....oh wait.......

The ONLY thing that can stop the swamp sinking into the Ship canal is if all the other clubs in the FAPL ALLOW them to sell their own tv rights.
cant see that happening anytime soon can you?
 
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