Manchester United Rumours Archive October 08 2010

08 Oct 2010 22:15:32
Manchester United Rumours
Rumours i'm hearing is that Park, Carrick, Brown, De Laet, Kuszczak and O'Shea will be available for transfer in the summer and Ferguson's transfer kitty will be £50m + player sales over the January and summer window. there will be no move for Gareth Bale in January as this will be pursued in the summer. Defour will definitley be pursued in January. There is also a strong feeling that United will make a £20m move for Alexis Sanchez and Mauricio Isla in January rather than the summer and immediately loan back Mauricio Isla who will eventually replace O' Shea. from these rumours it appears there will be a squad revamp over the next 10 months

08 Oct 2010 14:57:46
Manchester United Rumours
{ed's note - I would think it is intended to pay off the PIKs first and foremost. But if there is some left over to pay off anything when the bonds become due that would be a plus. It would enable to club to either release a lesser bond or take out a lower interest loan or even be debt free.}

@Ed they are only 50m shy of having enough to complete eradicate the PIKs, surely by this time next year they can raise 50m? Then it will leave 6 years to save up and pay off this 509.5m bond?

A debt free United would make profits of between 50-70m after tax no problem. There wouldn't be a club on this planet that could match that ed!

Maybe the Glazers were right to turn down them offers, now the economy is picking up they could walk away from United 2bn richer in 10 years time? {ed's note - I doubt they would want to sell something which could fund their extravagant lifestyles as long as they want it.}

08 Oct 2010 14:22:07
Manchester United Rumours
Ed can you ask if the 83.6m will be subtracted from the 163.8m cash reserves?

{Editor's Note: The answer to this is simpler. The loss is for one year only – the cash reserves are an on-going stash of working funds. They could cover the losses from the cash reserve (thereby reducing the stash of cash they have but not increasing the debt) but have chosen to increase the debt instead. The one off cost related to the setting up and management of the bond scheme. This will not recur.}

@That's right, out of the 83.6m loss, 64.7m of it is that 'one off' bond payment which means our losses would have been just 18.9m. Then if you take away the wages when the legends leave United will be breaking even although will still have an healthy cash balance sitting in the bank.

Could the Glazers be saving up the cash in the bank to pay off the PIKs? Or is it possible it could be saved up to pay the bonds off come 2017? If United could save up 163.4m in just a year or two, surely they could save up enough to wipe the debt in 2017? {ed's note - I would think it is intended to pay off the PIKs first and foremost. But if there is some left over to pay off anything when the bonds become due that would be a plus. It would enable to club to either release a lesser bond or take out a lower interest loan or even be debt free.}

08 Oct 2010 12:41:57
Manchester United Rumours
{ed's note - this is the reply I got from the editor I asked, I hope this helps you because it makes absolutely no sense to me whatsoever!

Cash in hand is what is termed "Capital Employed" and falls in to the same category as the shares (as issued - for example 100 at £1 each will be listed as £100 rather than 100 x their value). I would not like to comment on whether or not this is held for the purposes of tax avoidance.}

08 Oct 2010 12:14:11
Manchester United Rumours
This is why i believe Lindegaard & Defour will be bought and nobody else. Do you think its likely just VDS & Scholes will be replaced? {ed's note - that seems to be the most likely thing, it seems like that would be the minimum buys the club needs to keep it in the top four.}

@Ed we do however have a cash balance of 163.8m, i think that changes a lot of things does it not? {ed's note - not if you are making millions of pounds in losses, that will have to come from the cash balance.}

@From the end of May United had cash reserves of 95m, remember Ed? The time the United fans thought that meant we had 95m to spend? Well since may the cash has risen from 95m to 163.8m, is all of this just a way of avoiding paying tax? {ed's note - I am not an accountant mate, I don't know if they are using tax dodges or not.}

08 Oct 2010 11:51:00
Manchester United Rumours
Ed United make 100.8m in operating profits but an over all loss of 83.6m, what's the crack?

Obviously the 83.6m broken down is the 60m bond insurances plus 7.6m for Bebe, 10m for Smalling and 6m for Hernandez.

But what does it all mean? Does it mean this time next season United will only break even if they do not buy anyone? {ed's note - it really depends, accounts are always at least a year behind so I am not sure if you are referring to the accounts released next year or the state of the club next year. Because if you mean the state of the club next year, you have to remember that you will have a number of extremely high wage earners off the bill, you would expect, in Scholes, Giggs, VDS and Neville. That is millions of pounds in savings right there. I don't think United are going to ever be in trouble of going out of business, but I think you will be struggling to raise money to spend anything unless you sell someone for big money.}

Well United have no intention of selling players Ed or they would have sold Vidic, Berbatov, Rio, Carrick or Anderson when they were bid for. Instead they said they were not for sale. They were going to give Rooney 130k a week contract before all of his problems started so he was staying put too.

Neville, VDS, Giggs, Owen & Scholes are all leaving at the end of the year and together are on over 20m a year wages. The accounts seem to not show United have made 14m on the Tosic & Foster sales.

This is why i believe Lindegaard & Defour will be bought and nobody else. Do you think its likely just VDS & Scholes will be replaced? {ed's note - that seems to be the most likely thing, it seems like that would be the minimum buys the club needs to keep it in the top four.}

08 Oct 2010 09:34:20
Manchester United Rumours
{Editor's Note: I will wait for the figures before making any comment on this.}

@Mind you ed, i have just heard that the 60m loss is the bond insurances, meaning next year we will break even!