United going down the pan as Glaziers continue to milk them

[Dedworth]

Something I've long suspected

http://www.guardian.co.uk/football/2...-glazer-family

In its financial results the club revealed that it was only the £80m sale of Ronaldo and other transfer dealings that lifted Manchester United out of the red last season. Results for the Red Football Ltd subsidiary revealed a pre-tax profit of £48.2m but also indicated the overall amount owed by the club and its owners broke the £700m barrier for the first time since Malcolm Glazer acquired the club in 2005.

Despite increased revenues, interest payments and write downs meant that, without the £80.7m realised in transfer profits in the year to June 2009, the club would have made a loss of £32.5m.

How much is a season ticket down at FC United ? - next home game is Bradford Park Avenue in the Unibond

[KeithD]

It's all covered by assets though, and is cheaper to have the debt than to pay it off. That's how economies work these days

[Dedworth]

It's all covered by assets though, and is cheaper to have the debt than to pay it off. That's how economies work these days

But what is the true value of Uniteds assets and are they sellable ? They haven't got any more £80 million pound players they can flog. There's an icy wind blowing around Sold Trafford and it's not just the cold snap.

[triple5]

Call in the administrators

[KeithD]

Call in the administrators

Dom, Joe & Rob will be along shortly

[walesrob]

Dom, Joe & Rob will be along shortly

Nah, we're the mods, your the admin Did you take your medication today snoopy?

[Bluebirdjones]

To reduce their dependence on bank debt, they have just given a mandate
to an investment bank to raise £500mln+ through a securitisation transaction,
which effectively means pledging future ticket sales, concession payments,
TV monies etc as both interest and security on the debt.

Arsenal did the same when they developed the Emirates Stadium, and the
public document has very strict rules about what they can & cannot do with
revenues, especially transfer fees received. I would expect the same in Moan
Utd’s case.

[Dedworth]

which effectively means pledging future ticket sales, concession payments,
TV monies etc as both interest and security on the debt.

Did Dirty Leeds do something similar a few years back before the recession

[Bluebirdjones]

... yes, Leeds did a simple thing.
That was a private transaction, whereas the Glazer's are doing a public offering.

Incidentally, it appears many of the clubs in the Premiership have already "sold" forward
their TV revenues, so as to fund transfers.
(Certainly wouldn't surprise me if Pompey hadn't .... which makes their situation
even more precarious)

[KeithD]

Nah, we're the mods, your the admin

Which makes you my bum chum slaves