Man Utd Debt

[Andrewmaha]

Does anyone understand how Man Utd have managed to become over £700m in debt? If so I would like an explanation.

I heard something on Radio 2 on Monday being discussed by Steve Claridge (I fine one to be discussing debt) and co and it went along the lines of buying bonds to cover loans etc.

I cannot find any answers on the www so can the accountants out there provide comment. Please don't spare the detail.

My underlying fear is that we go the same way, not.

[Hog]

Is this something you could go and discuss on a Manure site as frankly I don't think many on here will give a damn!

[Radley Rambler]

Is this something you could go and discuss on a Manure site as frankly I don't think many on here will give a damn!

I'd also like to understand it Hog. But only briefly.

[Hog]

I knew it! I just knew I should have added the sentence 'except the pedants who will express an interest just to prove me wrong!'

[Baboo]

Is this something you could go and discuss on a Manure site as frankly I don't think many on here will give a damn!

Obviously will get a more sensible answer on here.

[theox]

It is something to do with Glazer securing the money he borrowed to actually buy the club against the club. Sadly, as they make so much money they can afford the repayments and still turn a profit.

I'm just hoping the money gets called in so that they go bust. They are the only club I wouldn't mind actually going under (even including Slumdon) as they don't have any real fans left anyway................

[Andrewmaha]

Is this something you could go and discuss on a Manure site as frankly I don't think many on here will give a damn!

Only manure fans are likely to discuss on a manure site.

The intellect lies here.

[SmileyMan]

I was halfway through writing an intelligent reply about whether buyouts should be allowed to leverage against assets of the buyout target, and then the responsibility for the premium transferred to the target.

But then I realised it's ManUre and no-one cares.

[Boogie]

http&#58//www&#46bbc&#46co&#46uk/blogs/ ... ta&#46html

might help for anyone who is interested.

[slappy]

Although on a completely different scale, I think this does have parallels to our own club.

WPL bought OUFC for £2m from Kassam and then charged the club interest on that £2m. (I believe they actually bought the club for £1 or so and the club repaid £2m of debt due to Kassam/ Firoka London Park funded by a loan from WPL, but the effect is the same)

[GodalmingYellow]

Does anyone understand how Man Utd have managed to become over £700m in debt? If so I would like an explanation.

I heard something on Radio 2 on Monday being discussed by Steve Claridge (I fine one to be discussing debt) and co and it went along the lines of buying bonds to cover loans etc.

I cannot find any answers on the www so can the accountants out there provide comment. Please don't spare the detail.

My underlying fear is that we go the same way, not.

I did write a lengthy reply, but RO crashed as I pushed the submit button, and I couldn't be arsed to do it again.

Basically Glazer wanted to buy ManUre, but couldn't afford it, so he borrowed the money to buy the majority shareholding, then transferred the debt to ManUre and hocked the club, it's stadium, season ticket money, future stadium naming rights, TV rights, the company van, and just about everything else.

Although ManUre has huge crowds, the debt is so huge, and was taken when interest rates were (relative to today) high and the club can't afford the repayments, hence the sale of Ronaldo last summer.

The rumours are that they will have to sell another big name before the end of the season.

The bond issue was to raise capital to repay some of the debt to reduce the interest charges to avoid player disposals. The bonds pay investment income at a rate lower than the interest charged on the borrowings, thus making it financially benefical. It worked to the extent that the bond issue was full taken up to the tune of £504m, but the value of the bonds is falling rapidly as no major investor has confidence in ManUre's finances. The bonds will have to be repaid at some point in the future.

Sooner or later, a &quotbig&quot club is going to fall.

[slappy]

http&#58//www&#46bbc&#46co&#46uk/blogs/ ... ta&#46html

might help for anyone who is interested.

in the earlier blog by Matt Slater was a link to a united rant which explains a bit more. (Strangely this United Rant seems to be about a team playing in red rather than yellow - how odd: I thought there was only one United)

[Snake]

Does anyone understand how Man Utd have managed to become over £700m in debt? If so I would like an explanation.

I heard something on Radio 2 on Monday being discussed by Steve Claridge (I fine one to be discussing debt) and co and it went along the lines of buying bonds to cover loans etc.

I cannot find any answers on the www so can the accountants out there provide comment. Please don't spare the detail.

My underlying fear is that we go the same way, not.

I did write a lengthy reply, but RO crashed as I pushed the submit button, and I couldn't be arsed to do it again.

Basically Glazer wanted to buy ManUre, but couldn't afford it, so he borrowed the money to buy the majority shareholding, then transferred the debt to ManUre and hocked the club, it's stadium, season ticket money, future stadium naming rights, TV rights, the company van, and just about everything else.

Although ManUre has huge crowds, the debt is so huge, and was taken when interest rates were (relative to today) high and the club can't afford the repayments, hence the sale of Ronaldo last summer.

The rumours are that they will have to sell another big name before the end of the season.

The bond issue was to raise capital to repay some of the debt to reduce the interest charges to avoid player disposals. The bonds pay investment income at a rate lower than the interest charged on the borrowings, thus making it financially benefical. It worked to the extent that the bond issue was full taken up to the tune of £504m, but the value of the bonds is falling rapidly as no major investor has confidence in ManUre's finances. The bonds will have to be repaid at some point in the future.

Sooner or later, a &quotbig&quot club is going to fall.

Indeed, now....how much is that Rooney bloke worth I wonder?

[Andrewmaha]

Does anyone understand how Man Utd have managed to become over £700m in debt? If so I would like an explanation.

I heard something on Radio 2 on Monday being discussed by Steve Claridge (I fine one to be discussing debt) and co and it went along the lines of buying bonds to cover loans etc.

I cannot find any answers on the www so can the accountants out there provide comment. Please don't spare the detail.

My underlying fear is that we go the same way, not.

I did write a lengthy reply, but RO crashed as I pushed the submit button, and I couldn't be arsed to do it again.

Basically Glazer wanted to buy ManUre, but couldn't afford it, so he borrowed the money to buy the majority shareholding, then transferred the debt to ManUre and hocked the club, it's stadium, season ticket money, future stadium naming rights, TV rights, the company van, and just about everything else.

Although ManUre has huge crowds, the debt is so huge, and was taken when interest rates were (relative to today) high and the club can't afford the repayments, hence the sale of Ronaldo last summer.

The rumours are that they will have to sell another big name before the end of the season.

The bond issue was to raise capital to repay some of the debt to reduce the interest charges to avoid player disposals. The bonds pay investment income at a rate lower than the interest charged on the borrowings, thus making it financially benefical. It worked to the extent that the bond issue was full taken up to the tune of £504m, but the value of the bonds is falling rapidly as no major investor has confidence in ManUre's finances. The bonds will have to be repaid at some point in the future.

Sooner or later, a &quotbig&quot club is going to fall.

Ok, situation understood. Thanks for clarification.

Thread now closed.

[theox]

Does anyone understand how Man Utd have managed to become over £700m in debt? If so I would like an explanation.

I heard something on Radio 2 on Monday being discussed by Steve Claridge (I fine one to be discussing debt) and co and it went along the lines of buying bonds to cover loans etc.

I cannot find any answers on the www so can the accountants out there provide comment. Please don't spare the detail.

My underlying fear is that we go the same way, not.

I did write a lengthy reply, but RO crashed as I pushed the submit button, and I couldn't be arsed to do it again.

Basically Glazer wanted to buy ManUre, but couldn't afford it, so he borrowed the money to buy the majority shareholding, then transferred the debt to ManUre and hocked the club, it's stadium, season ticket money, future stadium naming rights, TV rights, the company van, and just about everything else.

Although ManUre has huge crowds, the debt is so huge, and was taken when interest rates were (relative to today) high and the club can't afford the repayments, hence the sale of Ronaldo last summer.

The rumours are that they will have to sell another big name before the end of the season.

The bond issue was to raise capital to repay some of the debt to reduce the interest charges to avoid player disposals. The bonds pay investment income at a rate lower than the interest charged on the borrowings, thus making it financially benefical. It worked to the extent that the bond issue was full taken up to the tune of £504m, but the value of the bonds is falling rapidly as no major investor has confidence in ManUre's finances. The bonds will have to be repaid at some point in the future.

Sooner or later, a &quotbig&quot club is going to fall.

How long was the 'lengthy' reply?!