Man Utd Debt
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- Brat
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Man Utd Debt
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 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.
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- Grumpy old git
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Re:
I'd also like to understand it Hog. But only briefly."Hog" wrote: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!
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................
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................
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- Brat
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- Location: Swansea
Re:
"Hog" wrote: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.
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)
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)
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- Senile
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Re: Man Utd Debt
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."Andrewmaha" wrote: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.
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 "big" club is going to fall.
Re:
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)"Boogie" wrote:http://www.bbc.co.uk/blogs/ ... ta.html
might help for anyone who is interested.
Re: Man Utd Debt
Indeed, now....how much is that Rooney bloke worth I wonder?"GodalmingYellow" wrote: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."Andrewmaha" wrote: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.
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 "big" club is going to fall.
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- Brat
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- Joined: Thu Feb 12, 2009 5:09 pm
- Location: Swansea
Re: Man Utd Debt
"GodalmingYellow" wrote: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."Andrewmaha" wrote: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.
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 "big" club is going to fall.
Ok, situation understood. Thanks for clarification.
Thread now closed.
Re: Man Utd Debt
How long was the 'lengthy' reply?!"GodalmingYellow" wrote: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."Andrewmaha" wrote: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.
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 "big" club is going to fall.