United Report Loss of £83.6m (Merged)

[barryo]

Re: United Report Loss of £83.6m

Am I being ultra cynical when I am highly suspicious of the timing of these financial loss revelations?

Remember the last time England played....Rooney was outed as a 'serial sex pest' er sorry, a "Payer of Prostitutes"!!

Now that England play again, they have Record profits/losses depending on which shade of glasses you've got on.

Oh and if it is true that AON paid in full for their shirt sponsorship(£80M) then that would make another record PROFIT/LOSS....again depending on those shady glasses.....

Things that make you go Mmmmmmmmm....

 

[Anonymous]

Re: United Report Loss of £83.6m

Looks like the only market fergie's going to be buying from is in Levenshulme...



Top quality,agent Glazer.
Your work here is almost done.

 

[Skashion]

Re: United Report Loss of £83.6m

From Swiss Ramble's Twitter: Hope people realise that Man Utd's £84m loss excludes interest payments on PIK debt (£26m last year), which is booked in another company.

 

[Rammy Blue]

Re: United Report Loss of £83.6m

Looks like the only market fergie's going to be buying from is in Levenshulme...



Top quality,agent Glazer.
Your work here is almost done.

The scum thought they'd got us with Agent Hughes, we certainly top-trumped them with Agent Glazer.

pmsl.

 

[SeaBass]

Re: United Report Loss of £83.6m

My take on the results responding to someone on MUEN who said that you need to take certain things out of the results (accountant apparently - well I'm a better one!)
--------------------------------------------------------------
Good accountant maybe, but no businessman!

Amortisation is the write off of the registration fees over the period for their contracts for signing players. Whilst no it is not cash it does represent cash it's self it does in that you would expect the club to reinvest in the squad each year. So right now Amortisation could be brought low by not signing players but then the business will suffer for lack of investment?

Think of the ageing players to be replaced - VDS, Scholes, Giggs, Ferdinand. Let's say bargains of £20m each on 4 year contracts. That would be an extra Amortisation charge of £20m per year but cash outlay up front (depending on the deal done) of £80m. In addition bear in mind that these players will be fully written off in the books and so this is ADDITIONAL amortisation to come off the £100m operating profit.

In addition consider that the key players are ageing, so will not be sold on for cash. Therefore the ability to sell to balance the books (as the sale of Ronaldo did last period) is reducing. The only highly sellable asset right now is Rooney and possibly Evra who could dent numbers like this.

This flow of "assets" through the business will impact the results, United at the moment have a long serving staff generally who are the key players. When they need to be replaced they very quickly have a negative impact on the results - as you see happening across the city.

I would suggest the major risk to the stability and ability to service the debts has not been mentioned though:

Fergie has caused the results to be like this in (1) having an eye for talent which will appreciate (make profit) (2) bringing players into the squad through purchase or bring ing on youth who will be in the team for many years (low to nil amortisation). This results in low costs. Now consider Fergie only has a year or two left, new manager needed, reduction in club loyalty from the players (which is amazing at United), less ability to bring through youth to perform above their status (Gibson, Fletcher, Brown etc), desire to bring in his own team (costly transfers)

The retirement of Fergie in a few years is the major risk, United are in the position they are financially due to him and his style of management which has created a unique position in the game. United are not in a position to be able to spend like Real or Inter so without him and with the huge debt problem what will the legacy be

 

[sir malcom]

Re: United Report Loss of £83.6m

Looks like the only market fergie's going to be buying from is in Levenshulme...



Top quality,agent Glazer.
Your work here is almost done.

very witty young man,

 

[Mr.Banks]

Re: United Report Loss of £83.6m

Am I over simplifying this?

Last year £40m profit

This year £85m loss

Could this be construed as a total loss of £125m?

Obviously if it can it doesn't make our figures look any better either but it is something else to throw at the scummers!!

tick tock...

 

[SeaBass]

Re: United Report Loss of £83.6m

Am I over simplifying this?

Last year £40m profit

This year £85m loss

Could this be construed as a total loss of £125m?

Obviously if it can it doesn't make our figures look any better either but it is something else to throw at the scummers!!

tick tock...

Remember last year had the profit on the £80 tranny sale!

 

[DenisLawBackHeel74]

Re: United Report Loss of £83.6m

Ignore the smoke and mirrors operating income is meaningless if you are heamorraging (SP) cash like they are....all you need to know is they are in NEGATIVE cash flow. Normally a business is regarded as 'bankrupt' following 3 accounting periods of negative cash flow.

ie. Cash flow statement = the balance of payments coming into and leaving the business.

Sorry, but I do not agree.

A business is bankrupt when total liabilities exceed total assets - ie owners's equity becomes negative.

3 consecutive accounting periods of net negative cashflow does not consititute bankruptcy, otherwise quite a few clubs would be bankrupt right now.

Negative cash flow is one of a number of financial stress indicators - when coupled to a relatively weak balance sheet (ie United), the alarm bells start to go off.

You are right if you mean that companies do not mostly go bankrupt becasue of accounting losess - they mostly go bankrupt due to cashflow problems - inability to pay creditors when required,

You and I do reach the same conclusion, though - the Scum are in the poo and sinking deeper every year!

I was being literal and assuming there is not retained capital to call up. In most cases if you have a business that runs in negative cashflow over 3 periods then you should be very worried indeed...

imo cashflow is THE financial indicator, you can talk about income all you like, if your outgoings exceed that income then your business model is not sustainable...

 

[ifiwasarichfan]

Re: United Report Loss of £83.6m

What will the Financial Report be like next year if the Top 4 at the end of the Season is Chelski, us, Arsenal and Spurs ??????.

Think I will throw in another Tick Tock.