08 Jun 2017 13:57:23
Anyone shed any light on the current debt situation. Since we are making record revenue and now the added sponsorships deals and ucl football money to add,

Where does the debt stand. Are we aiming to clear the debt anytime soon? And how much is it at.


1.) 08 Jun 2017
08 Jun 2017 16:02:05
I don't know the exact answer to this but I doubt we will ever look to clear the debt, most clubs / companies have a level of debt that they work with.

2.) 08 Jun 2017
08 Jun 2017 16:36:48
Using other people's money to make money is always better than using your own. So there is no issue with us having debt, people read things and get scared. Don't be scared.

3.) 08 Jun 2017
08 Jun 2017 16:41:30
A UEFA report in January said it was around £450 million which is the highest in world football and had increased by 25% over the past year.

4.) 08 Jun 2017
08 Jun 2017 16:42:31
I'm not scared walrus. Just don't understand why the debt hasn't been cleared yet.

5.) 08 Jun 2017
08 Jun 2017 16:56:42
Bolger. Clearing the debt would not be good business for the club.

6.) 08 Jun 2017
08 Jun 2017 18:38:26
Why would it not be good business?

Surely clearing the debt would be good business as payments to reduce the debt/ interest payments would stop and the money could be spent elsewhere within the club.

I'm not saying pay it off all in one go but if the figure of 450 million above is correct what are we are the plans to remove the debt.

Has the club go a plan on when they are aiming to pay it all off, that's my question or are they not bothered about it.

7.) 08 Jun 2017
08 Jun 2017 20:05:59
A business of this stature is better off running in the red, don't worry one bit about the debt. The uproar when the club was bought was over the top. Debt is not a bad thing for a business.

8.) 08 Jun 2017
08 Jun 2017 20:24:00
Compared to when the Glazers bought the club the interest payments are quite small. At that time our revenue/ turnover was approximately 1/ 3rd of what it is now and debt was twice as much with some high rate of interest loans. £400m net debt is very manageable especially when compared to Forbes recent valuation of the club at almost £3bn. In other words the directors have every reason to be satisfied with the capital structure of the club as it is. Debt elimination will be less important than fulfilment of the overall business plan.

9.) 08 Jun 2017
08 Jun 2017 20:29:16
Fair enough :)

10.) 08 Jun 2017
08 Jun 2017 23:39:37
financial leverage. google it. and you would understand why it is good business to keep debt. I don't like it but it´s just good business.

11.) 09 Jun 2017
09 Jun 2017 13:30:04
It annoys me that people don't understand money. Our debt is linked in with the currency exchange rate so our debt has increased massively this year since bro it and the hit on the currency exchange rate- the debt will be even higher this morning after the election. Our debt is huge still, the only reason we've been okay is because we are a. corporate machine now.

12.) 10 Jun 2017
10 Jun 2017 07:49:41
Leverage is part of business, not having any debt could be seen as not managing the business in the most effective manner.

There is a huge however though. Usually a debt is to enable investment in improving the business, helping it to grow. This debt was not used to invest and improve the business but foisted on us to enable someone who didn't have the money to buy our club and make the club pay for it. Where did the £1bn of loans, costs and interest go? Players, stadium, no it was to fund the managed buy out, wasted wasted money.

The debt will probably sit there eating interest, taking a piece of our income until they sell.

Therefore usually it is efficient to have debt, but not in this instance because it was not invested to improve the business.