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Post by luke45 on Oct 20, 2008 22:17:12 GMT
Just been reading into some financial figures for Manchester United, and their situation really is severe, heres a few interesting financial facts as follows:
- The Glazer Family paid a total of £921 Million to purchase Man Utd.
- They borrowed at least £650 Million, of that sum, some at 20% compound interest.
( baring in mind these figures are based around 6 months or more ago, so the situation could be far more severe. )
- it is expect that within a matter of a couple of years their debts will reach £938 Million or more at the current rate.
Lets now say for example every pound spent on man united was straight profit, man utd fans would have to pay DOUBLE on everything ( merchandise and tickets ) so what £90-100 per ticket per person? and say £90 per replica shirt?
If they sold their stadium ( 75K a week ) and at those prices that continued for at least 3 years they would STILL be in the red.
The Hedge Funds ( the finance company who gave glazer the vast majority of his loans ) are in a win-win situation really, why?
If glazer's financial plan pays off, they get their money back plus interest.
And if it fails, the hedge funds get control of man united, real control of the board. real ownership.
And these guys will not care about the clubs history.
On this basis the only logical way out would be to sell off their assets and estimates suggest that they would get about £200 Million for Old Trafford, which when you bare in mind the reason their debts aren't even more severe, is because of the stadium income, would make minimal different to their problems.
People can slate Peter Kenyon, but the bloke isn't stupid, the minute they took over he said the whole thing, the financial targets by glazer in particular were unrealistic, and the evidence is their.
The fact that when glazer took over united, he aimed to be £108 Million in the green by THIS YEAR, tells how bad its going, they still find themselves in excessive debt.
Man United are too bigger club to fold, i think we all know that ( and as much as i dislike them, i wouldn't wish administration on any club ) but with these figures in years to come are they going to be the force they are? all will be revealed.
Ide sooner be associated with the mighty potters, stable balance, honest local chairman, and good future prospects there to hopefully achieve.
Make of it what you will, clubs throughout the world are really struggling with money, with clubs needing more and more finances to compete these days, with even championship clubs competeing with excessive parachute payments.
Caps on both wages and fees would only improve the scenario in my opinion, i just hope the FA or UEFA or SOMEBODY. acts soon, because finances are really damaging the game, more than meets peoples eyes.
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Post by crimesy on Oct 20, 2008 22:20:02 GMT
it is a complicated and very worrying issue.. something that i hope will not effect Stoke or teams alike.. or the fans!
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Post by mumf14 on Oct 20, 2008 23:07:43 GMT
It just takes one top 10 club to hit the wall.....then confidence will slump in clubs of a similar position.
Just take Liverpool as an example.When will their debt supercede their attractive European status and pedigree.....
The answer is very soon....Unless of course you know of a few bored Arab Billionaires.
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