Because they stand to gain if the shares increase in value. It's quite a common model in the USA apparently, which is why that's the only place they could do this. But football and football clubs are a notoriously risky business although a debt free MUFC would probably be an attractive proposition.mad zab said:Prestwich_Blue said:One thing that does occur to me is that they must be desperate to pay off the bonds before Baconface retires and everything now points to this being his last season. If he goes and they're still in debt then it really is tick-tock as he is half their strength, given his ability to keep a relatively weak squad in the top four. To attract anyone decent they'll need to be able to spend decent money and the debt stops them doing that. Let's hope this whole thing fails.
The other interesting thing is that the PIK notes seem to have been a debt on the UK holding company, as that's where they were repaid from. Money seems to have been introduced (via the sale of shares) but the Glazer's contention that the PIK debt was a private one isn't borne out by this document.
The beauty of these offer documents is that you can see just how much financial havoc has been wrought by the Glazers. Without Baconface they'd have been screwed by now probably. I'd like to wish them a happy July 4th, god bless 'em.
PB why would anyone buy shares, without some sort of guaranteed return and no influence on club policy?
Prestwich_Blue said:Because they stand to gain if the shares increase in value. It's quite a common model in the USA apparently, which is why that's the only place they could do this. But football and football clubs are a notoriously risky business although a debt free MUFC would probably be an attractive proposition.mad zab said:Prestwich_Blue said:One thing that does occur to me is that they must be desperate to pay off the bonds before Baconface retires and everything now points to this being his last season. If he goes and they're still in debt then it really is tick-tock as he is half their strength, given his ability to keep a relatively weak squad in the top four. To attract anyone decent they'll need to be able to spend decent money and the debt stops them doing that. Let's hope this whole thing fails.
The other interesting thing is that the PIK notes seem to have been a debt on the UK holding company, as that's where they were repaid from. Money seems to have been introduced (via the sale of shares) but the Glazer's contention that the PIK debt was a private one isn't borne out by this document.
The beauty of these offer documents is that you can see just how much financial havoc has been wrought by the Glazers. Without Baconface they'd have been screwed by now probably. I'd like to wish them a happy July 4th, god bless 'em.
PB why would anyone buy shares, without some sort of guaranteed return and no influence on club policy?
The $100m is not the final figure. It's a notional figure for the purposes of the offer document. They'll need a lot more than that to pay off the bonds (nearer $700m).The Pink Panther said:Prestwich_Blue said:Because they stand to gain if the shares increase in value. It's quite a common model in the USA apparently, which is why that's the only place they could do this. But football and football clubs are a notoriously risky business although a debt free MUFC would probably be an attractive proposition.mad zab said:PB why would anyone buy shares, without some sort of guaranteed return and no influence on club policy?
I don't know if it's been mentioned already, but a financial expert on 5 Live said that £64m obviously isn't a lot of cash when they have debts of £450m and the reason he believes the shares are being issued is so the "company" will have a definitive value.
At the moment the value of the rags is only an estimation. This share issue will give a true indication to their actual worth and is probably the first step to an actual sale
Where does FFPR come into all of thisPrestwich_Blue said:The $100m is not the final figure. It's a notional figure for the purposes of the offer document. They'll need a lot more than that to pay off the bonds (nearer $700m).The Pink Panther said:Prestwich_Blue said:Because they stand to gain if the shares increase in value. It's quite a common model in the USA apparently, which is why that's the only place they could do this. But football and football clubs are a notoriously risky business although a debt free MUFC would probably be an attractive proposition.
I don't know if it's been mentioned already, but a financial expert on 5 Live said that £64m obviously isn't a lot of cash when they have debts of £450m and the reason he believes the shares are being issued is so the "company" will have a definitive value.
At the moment the value of the rags is only an estimation. This share issue will give a true indication to their actual worth and is probably the first step to an actual sale
We also don't know how much debt the Glazers have in companies we can't see. Presumably once they pay off the bonds then they can really plunder the rags' coffers.
"The shitty Man Utd went to the Caymans to see their accountant.
The shitty Man Utd went to the Caymans to see their accountant.
The shitty Man Utd went to the Caymans to see their accountant and this is what he said..."
squirtyflower said:how can they hide how they are getting the money and yet comply with FFPR
It seems wrong
squirtyflower said:Where does FFPR come into all of thisPrestwich_Blue said:The $100m is not the final figure. It's a notional figure for the purposes of the offer document. They'll need a lot more than that to pay off the bonds (nearer $700m).The Pink Panther said:I don't know if it's been mentioned already, but a financial expert on 5 Live said that £64m obviously isn't a lot of cash when they have debts of £450m and the reason he believes the shares are being issued is so the "company" will have a definitive value.
At the moment the value of the rags is only an estimation. This share issue will give a true indication to their actual worth and is probably the first step to an actual sale
We also don't know how much debt the Glazers have in companies we can't see. Presumably once they pay off the bonds then they can really plunder the rags' coffers.
"The shitty Man Utd went to the Caymans to see their accountant.
The shitty Man Utd went to the Caymans to see their accountant.
The shitty Man Utd went to the Caymans to see their accountant and this is what he said..."
Scum seem to have all their accounting going through secretive regimes in Delaware and now the Cayman's, how can they hide how they are getting the money and yet comply with FFPR
It seems wrong
quiet_riot said:squirtyflower said:how can they hide how they are getting the money and yet comply with FFPR
It seems wrong
They are the great MAnchester United. FFPR was brought in to protect them and their ilk.