Manchester United Rumours Archive October 09 2010

 

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09 Oct 2010 13:44:36
Manchester United Rumours
The Glazers must be pissing themselves as they can't believe their luck They are bleeding the club dry Selling the best asset without replacing like for like and still idiots come on here supporting them and making excuses. The 83 million loss is the exact same figure United received for selling Cristiano Ronaldo, one of the world's most glittering footballers, gone in £40m interest, on the £500m bond the Glazers borrowed in January, and £41m for early repayment of an interest rate agreement United's financial wizards had entered into only a year earlier. The same huge money earned for trading a great and thrilling player, spent in useless payments to financial institutions who, in a recession, can surely hardly believe their luck.

And there they were again, the same justifications rolled out by David Gill, United's chief executive, as if he, a United fan and football lover, really believes them: that the mountain of debt, now up to £769m, has no effect on United whatever, that the club is not burdened in any damaging way by money going out on that scale. With the interest payments, plus interest at 14.25% on the £202m "payment in kind" hedge fund debt, and the £13m paid to banks for United to issue that bond, the cost of the Glazers' financial chicanery last year alone was £123m. The total cost of the Florida-based family's takeover of United, done with mostly borrowed money in 2005, which was then loaded on to the club to repay, has since been £583m, in interest, bank fees and other charges.

RAINFISHTROMBONE

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09 Oct 2010 13:14:32
Manchester United Rumours
"09 Oct 2010 01:13:14
Manchester United Rumours
The bad news for Utd is that what hasn't been made clear is that although the club made £100,000,000 profit it finished on minus £83,000,000. Think about it, this doesn't mean we lost £83,000,000, start at zero, you have zero, you make £100,000,000, your final accounts show -£83,000,000, with me yet? That means we have lost £183,000,000.

Players will be sold soon. How do I know? I work for Duncan Williamson, financial accountants (one of a few) for United. Plans are already afoot to trim the team and the wage bill of the highest earners. Berbatov's recent form will be used against him, he will be touted around to the highest bidder, something that wouldn't have happened last season as no team wanted him. Sir Alex is waiting for him to get unhappy by not starting and will instead stick to his cheap players, hoping they perform and can be sold. Dark times ahead, Utd are in dire financial straits. Fergie's dreams of overtaking Liverpool will not be realised, but he is promised a decent signing off fee if he sees out his contract quietly. Fans, revolt NOW!"

Another "non finance" person trying to apply common man's mathematics to finance. Go and study economics for some time mate you yourself will be laughing at what you wrote.

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09 Oct 2010 11:27:31
Manchester United Rumours
This Utd scare mongering is ridiculous. .

UTD have debts, but they are also managable. Although far from ideal.
The idea is to pay of these PIK loans first and show losses before the financial fair play rules come into play. (which incidentaly will bugger City, as they can't just write off their massive losses, they have to spread their losses over the period of their players contracts) When these rules come into play UTD will be showing breakeven or a small profit, due to payments of the PIK loans, which accrue 16% odd interest.
UTD generate more global income than any other team on the planet, so although their debts are larger, they generate more money too.
UTD have also budgeted to save by vastly reducing transfer spend for X period, so that when the bonds mature in 2017, they have enough funds to start heavily clearing remaining debt.

Will take about 10 years to do. There isn't a great danger of UTD going bust at all, as the model works (providing top four is maintained).
The only issue is, UTD won't be able to compete for stellar signings for a few years.(maybe 1 or 2, but certainly not season after season.) and will have to rely on finding young, talents and turning them into stars and selling on for huge profits, using this revenue for mild reinvestment and saving with 2017 in mind. .

UTD are going nowhere, but for a few years are also going nowhere! ; )

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09 Oct 2010 01:13:14
Manchester United Rumours
The bad news for Utd is that what hasn't been made clear is that although the club made £100,000,000 profit it finished on minus £83,000,000. Think about it, this doesn't mean we lost £83,000,000, start at zero, you have zero, you make £100,000,000, your final accounts show -£83,000,000, with me yet? That means we have lost £183,000,000.

Players will be sold soon. How do I know? I work for Duncan Williamson, financial accountants (one of a few) for United. Plans are already afoot to trim the team and the wage bill of the highest earners. Berbatov's recent form will be used against him, he will be touted around to the highest bidder, something that wouldn't have happened last season as no team wanted him. Sir Alex is waiting for him to get unhappy by not starting and will instead stick to his cheap players, hoping they perform and can be sold. Dark times ahead, Utd are in dire financial straits. Fergie's dreams of overtaking Liverpool will not be realised, but he is promised a decent signing off fee if he sees out his contract quietly. Fans, revolt NOW!

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