blueinsa said:RabidCity said:The operating profit posted by the club is likely to mean they meet the requirements. At the end of the day as a business they are profitable, just weighed down by financing which is only reflected in the net figure. Net Losses are sustainable, Operating losses are not.
All good and well mate but the realities of this will mean a club like ourselves being banned from a compation for effectively being free of debt whilst a club from stretford, balls deep in a Billion quids worth are told to just carry on! Every few years madrid go cap in hand to the royal family, will that be ok or will they get banned?
Not a fucking chance of this happening imo, the lawyers will rip it too shreds.
Nothing more than the politics of envy, designed to protect the old guard.
As a business United are technically healthy because they repay their debt and refinancing would never be a problem with their huge turnover, debt isn't a problem until it isn't being repaid. Their problems will begin when they can't repay the debt but when that day looms i have no doubts the Glazers will sell up.
We are not in a healthy state at all, being debt free is alright but we are like a shop paying 5 grand a week for stock and only making 500 quid, its completely unsustainable. We do have a wealthy backer but what happens if his assets/capital was lost/frozen/blown up,etc? I.E what if he for some reason had to pull out of City, it would be catastrophic and almost certainly be the end of us as we have no assets such as a stadium to use as leverage. If the Glazers pull out of United and sellup they'll just simply be debt free or be leveraged with debt but with the turnover they pull its sustainable. Put yourself in the Sheikh's shoes how much of his investment in City do you think he will ever recoup? I don't think he'll ever see that money again and that's why he obviously will be here the long-term, he definitely though isn't your average investor.
Put yourself in UEFA's shoes, its not just City but consider an unpredictable backer or look at the fiasco at Portsmouth all of these owned by wealthy individuals who unlike our owner do not have football in mind but investment and profit, the second they see zero profit they just liquidate the asset and consolidate losses, basically letting wealthy businessmen into football is very risky as they won't always hold football as a priority, this is why i think the FFP makes sense, it will keep football as #1 as an owner can't just pile a bit of money into a club, go for Europe and if it failed just get rid of it.