United thread 2012/13 (inc merged IPO thread)

[mammyjam]

gill and fergie getting 16 million for 'senior' leadership

source?<br /><br />-- Tue Jul 31, 2012 3:17 pm --<br /><br />

gill and fergie getting 16 million for 'senior' leadership

source?

 

[Hamann Pineapple]

Re: MEN POST

We shouldn't kick a man while he's down but could someone ask them how Rock of Gibraltar is getting on at stud for me. I can't post on the MEN site from work.

 

[Prestwich_Blue]

anyone got a source for the fergie and gill pocketing £16m thing?

This is a complete misunderstanding I think. Certain people among the senior management team are being allocated 16m shares from this offering. I've not read this bit yet so it could just be (in fact probably is) a share option scheme.

So by paying off the PIK they own personaly, have they gotten rid of any personal liability in the club.

In effect they can keep taking out as directors and be liable for non of the the loss ?

The PIK notes were their personal debt and they allegedly borrowed the money (around £200m) to pay that off but there is a suggestion that there were clauses in that loan which penalised them if the ratio of total (the Glazers personal & rags corporate) debt went over a certain level compared to profits. So they had to try to reduce the debt and the IPO was the only way. If it doesn't come off then it will hit the Glazers in the pocket even more than it is currently.

I think they had to give guarantees against the bond, which was their shares. So if they can't pay that back, they lose their shares.

You can only pay dividends out of profits so they can only take these if they're not in loss but they have other ways of taking money out.

 

[bluemonkey71]

Cheers for the analysis Colin

 

[gordondaviesmoustache]

You can only pay dividends out of profits so they can only take these if they're not in loss.

Not strictly true iirc. You can pay dividends out of retained profits from previous years assuming the current year doesn't wipe them out. Not sure how that effects the Glazers tbh.

 

[Mike N]

Re: MEN POST

We shouldn't kick a man while he's down but could someone ask them how Rock of Gibraltar is getting on at stud for me. I can't post on the MEN site from work.

How true. If old Baconface hadnt have been so greedy, the Glazers wouldnt be in charge now.

 

[Rammyblues]

Saw this on another site not sure who the author is but it made me laugh especially the MAN U Golden Shares (MUGS) for short :-)

Malcolm lit a huge cigar and said to his financial advisor
"Run it past me one more time."

"Ok," said the advisor 'this is what we do.
We are going to try to sell 10% of the club
to raise $300m."

"To help pay off some of the debt," said Malcolm.

"Not necessarily," said the advisor 'you can
keep half of it for you and the family."

"Really!" said Malcolm. "But won't the manager
go mad? He's the shrewdest, wisest, canniest
manager of all time. Top at mind games.
He won't buy that will he?"

"Yup. Speaks very highly of you. Says
there isn't a problem," said the advisor.

"What about the fans?' said Mr Glazer.

"The green and gold lot could be tricky.
The rest are still buying United duvet covers,"
said the advisor.

"So we could get people to buy into the club,
have no voting rights, and pocket half the
cash ourselves," said Malcolm.

"Yup. That's why we are calling them
the Manchester United Golden Shares,"
said the advisor.

"MUGS!" squealed a delighted Malcolm.

"My thoughts entirely," said the advisor.

 

[Marvin]

Assuming this goes through, Man Utd finances are going to benefit by £75m less underwriting fees.

What happens in February 2017 when the Glazers have to find £500m to pay the maturing bonds (they issued bonds in 2010 to re-finance their takeover)?

 

[SWP's back]

Assuming this goes through, Man Utd finances are going to benefit by £75m less underwriting fees.

What happens in February 2017 when the Glazers have to find £500m to pay the maturing bonds (they issued bonds in 2010 to re-finance their takeover)?

Not really their finances mate, more their assets.

It won't be affecting their cash in the bank. It's like paying for a £14k kitchen on finance, then being given £3k and using that to pay some off your loan. Your finances aren't really affected (other than a marginally lower interest payment).

 

[Braggster]

You can only pay dividends out of profits so they can only take these if they're not in loss.

Not strictly true iirc. You can pay dividends out of retained profits from previous years assuming the current year doesn't wipe them out. Not sure how that effects the Glazers tbh.

Correct-you have to have distributable reserves in order to pay divis.

There are a number of ways of getting round the issue of not having distributable reserves. The real issue re paying dividends is more likely to be (a) cash constraints and (b) loan/bond covenants.