United Report Loss of £83.6m (Merged)

[fbloke]

Please accept my most sincere apologies for this.

I know there are a number of threads about the debts of a certain North West club but cutting through all the chatter on this a handful of paragraphs perhaps will put it into perspective for all non-financially minded Blues

That may be so. But the big question for United now is how do they continue to grow the business?

In the five years since the Glazers took over, United's revenues increased by a staggering £127m.

And while commercially, United will continue to reap the rewards of their worldwide strategy, elsewhere it is hard to see how they can make more money.

Unless they break the collective sale arrangement in the Premier League, any major growth in television revenues will be difficult and there is little scope to increase the capacity of Old Trafford.

They could put up ticket prices again but that would be extremely controversial and unless they can guarantee winning the Champions League and Premier League each season, it is hard to see how they can emulate the growth of the last five years.

On the costs side, interest charges under the bond will be £45m a year from next year and players wages and transfers are unlikely to come down in the near future. So where is the growth going to come from?

Thats all we need to know really don't you think?

 

[BoyBlue_1985]

Re: Please accept my most sincere apologies for this.

I know we all enjoy this very much but IMHO the rags will never go under or into admin. They are just too big and although i need to wash after saying that if the shit was about to hit the fan then someone would step in with the money to sort it out. I know its a fuck lot of money but im guessing there are a fair few billionaire rag supporters

 

[fbloke]

Re: Please accept my most sincere apologies for this.

I know we all enjoy this very much but IMHO the rags will never go under or into admin. They are just too big and although i need to wash after saying that if the shit was about to hit the fan then someone would step in with the money to sort it out. I know its a fuck lot of money but im guessing there are a fair few billionaire rag supporters

Its not about United going under, I agree with you that that wont happen.

But as Liverpool have, done and admitted recently, United have hit the very top point of their income generation.

On the back of the years where they have won everything and increased ticket prices to breaking point for many fans they have collected debt.

Now there really is only one way to go in terms of T/O and profit.

City have just started the journey of developing a brand and a T/O which will see the Blues outstrip United eventually. Of course that might happen sooner than we all dreamt of if they keep the Glazers ;-)

 

[ifiwasarichfan]

Re: Please accept my most sincere apologies for this.

I always have a nagging little doubt in the back of my mind that somehow, someday the obnoxious Clubs; Rags; Dippers etc will be able to negotiate their own TV deals. I know that logically the Bolton's and the Stokes could gang up and veto it. As why would a Turkey vote for Christmas but the doubt still remains.

Can one of the Financial experts on the Forum put my tiny mind to rest once and for all?

 

[blue1969]

Re: Please accept my most sincere apologies for this.

To be honest I really really, couldn't give a toss. If they sink or swim it means nothing.

 

[BoyBlue_1985]

Re: Please accept my most sincere apologies for this.

To be honest I really really, couldn't give a toss. If they sink or swim it means nothing.

It does i would not swap Derby Day for nopthing on Earth other than the £112 million on offer in Euromillions tonight

If i won that everyone would have a great time on Derby day!!!!

 

[waspish]

Re: United Report Loss of £83.6m

Going to throw this into the mix. It may upset or confuse some people.

According to the Times United have £100mill in cash reserves.

According a United poster on another forum.

Right now the Glazers can pay off, today....£163m of the £500m club debt or PIK debt.

Next year...that figure, subject to transfers will have risen to £230m on todays business volumes.
It really is that simple.

United owe £500m. In 12 months time we could clear half of it. We won't because, either the Glazers will pay their PIKS off or we will spend a bit on transfers.

Point is.

We are so far from being in trouble that it really is laughable to claim otherwise.

Wish what you want, hate the Glazers, hate modern football...is matters not to the bottom line.

United have £163m cash in the bank.

Anyone care to shed any light on this?

This is from Gill............

Gill added: "There was no desire at all from anyone at the club to sell Cristiano - he wanted to go and as a result we managed to extract a world record fee.

"These philosophy is to retain and attract the best players. We have £165million in the bank but in some ways we would prefer to have £80million in the bank and Ronaldo on the pitch."


So why didn't fergiescum spend any of that 165m?........Is he leaving it for a new manager? to splash the cash?...............

 

[mammutly]

Re: Please accept my most sincere apologies for this.

The bottom line is all about net, net, net.

Utd are not on the edge of disaster. The value of the club is greater than the debt. And that is the really important bit.

 

[Ricster]

Re: United Report Loss of £83.6m

Going to throw this into the mix. It may upset or confuse some people.

According to the Times United have £100mill in cash reserves.

According a United poster on another forum.

Right now the Glazers can pay off, today....£163m of the £500m club debt or PIK debt.

Next year...that figure, subject to transfers will have risen to £230m on todays business volumes.
It really is that simple.

United owe £500m. In 12 months time we could clear half of it. We won't because, either the Glazers will pay their PIKS off or we will spend a bit on transfers.

Point is.

We are so far from being in trouble that it really is laughable to claim otherwise.

Wish what you want, hate the Glazers, hate modern football...is matters not to the bottom line.

United have £163m cash in the bank.

Anyone care to shed any light on this?

Yeah, it seems true, but why wouldn't they want to pay off the PIK's that are going to criple them so much in the future.

What united seem to be doing is betting on Black or Red. Either that, or like i said on another thread, the PIK's are actually more than the 20% that the Glaziers have said.

 

[fbloke]

Re: Please accept my most sincere apologies for this.

I always have a nagging little doubt in the back of my mind that somehow, someday the obnoxious Clubs; Rags; Dippers etc will be able to negotiate their own TV deals. I know that logically the Bolton's and the Stokes could gang up and veto it. As why would a Turkey vote for Christmas but the doubt still remains.

Can one of the Financial experts on the Forum put my tiny mind to rest once and for all?

That is the fear that many people have of course.

Lets take the idea of the single TV deal, it wont happen as there are only really 5, possibly 6 clubs that could generate more from that route.

Chelsea may even struggle as could City and Spurs to better the deal that they get at the moment.

United, Arsenal and Liverpool are the best brands and most saleable as far as I can tell and perhaps they could benefit from that but there is a weird element to this one that many miss.

Clubs would only be selling the rights to their home games and would have to forgo any revenue from away games (currently all is shared) so as a start point they would have to double any deal they currently benefit from.

Look at Liverpool today and ask how much they are worth in TV revenue? How come they give Liverpool TV away for free?

I happen to think that Arsenal would NOT vote for a break-up of the current deal as they are not driven by a need to increase revenues in the way United are, naive perhaps but they are the best run club with the most traditional attitudes to these things in the league.

So the chance of the vote being carried in favour of decentralised TV deals is the slimmest of slim chances. I would say its definitely a non-starter.

Finally, and I have done some serious digging over the last several months on this and have a couple of questions in with people at UEFA and the FA.

There is a suggestion that the next step in the FFPR will be to make every league enter into centralised TV contracts modelled on the Prem' L'ge - it will be about creating a level playing field for teams within the national league (UEFA are not looking at controlling these deals and promote subsidiarity to the league level).

They see Spain as the biggest problem and I predict that within 5 years if the FFPR are bedded in that only centralised TV deals of the EPL model will be included in the FFPR for Euro Qualification.

So a nice thing to consider, and if ever I get answers to that question from either UEFA or the FA I will pop it up on here ASAP ;-)









(The fact that they have not said that isn't planned is very,very interesting dont you think?)