Man U money madness

[malcolm]

Man u have paid out more in interest (£41m) on its debt than the jambos owe 'themselves' it lost £35m in gambling on hedging as the glazers milk the club dry to meet the debts the club borrowed to fund their purchase.

Reuters coverage here

Now if hawrts had debts like that edinburgh city would be the capital derby

[PaulSmith]

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Man u have paid out more in interest (£41m) on its debt than the jambos owe 'themselves' it lost £35m in gambling on hedging as the glazers milk the club dry to meet the debts the club borrowed to fund their purchase.

Reuters coverage here

Now if hawrts had debts like that edinburgh city would be the capital derby

Does it mention the Glazers taking £10m out the club as well. Absolutely shocking that this is allowed by the football authorities. If you think that the fall out from the Banking crisis was bad wait until the tidal wave hits the English game

[marinello59]

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Does it mention the Glazers taking £10m out the club as well. Absolutely shocking that this is allowed by the football authorities. If you think that the fall out from the Banking crisis was bad wait until the tidal wave hits the English game

As long as Sky keeps bankrolling the clubs that tidal wave will never happen. The TV channels appetite for live football will never be satisfied so these crazy figures will continue to appear. The recession actually resulted in subscriptions to Satellite TV increasing as people chose to stay in. Fox have just started a new channel in America showing more Premiership football, the gravy train just runs and runs. Meanwhile as the rich get richer.....................

[Woody1985]

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Does it mention the Glazers taking £10m out the club as well. Absolutely shocking that this is allowed by the football authorities. If you think that the fall out from the Banking crisis was bad wait until the tidal wave hits the English game

I disagree with the way that the football club was financed but it's a business like any other and if I'm correct in saying that buy to let mortgages are effectively purchased with a guarantee that you can afford it. The rental income pays for the property and you own it in the end and can sell it for a nice big profit.

The problem with Man U is that even if they have success every year they will still be toiling to get rid of that debt.

[PaulSmith]

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As long as Sky keeps bankrolling the clubs that tidal wave will never happen. The TV channels appetite for live football will never be satisfied so these crazy figures will continue to appear. The recession actually resulted in subscriptions to Satellite TV increasing as people chose to stay in. Fox have just started a new channel in America showing more Premiership football, the gravy train just runs and runs. Meanwhile as the rich get richer.....................

But Man U won the EPL, the World Club Champs, the League Cup and were in the latter stages of the Champs League (final) for the season just reported yet without the Ronaldo money of £80m they would've made a loss of £30m (actual fig escapes me at this time).

So unless they sell £40m worth of talent per year and reach the latter stages of all their Cups then they return a loss.

Simply cannot continue.

[malcolm]

think in total the family have had the best part of £25 million in fees etc.

There is a complex set up of companies involved from which the family members get loans and fees etc. see here also

Man U are not really a football club football as well as 'global brand' selling shirts and DVDs they are a money making mechanism that has gone wrong. They are now selling corporate bonds to dig themselves out of a hole (more debt) and if the sale fails the money grubbing glazers may have to sell the club. Course if interest rates stay low then the rate they are offering to tempt bond buyers may be a further financial millstone.

Football should stick to football with only other business ventures that complement the football - gambling on derivatives and dodgy east european banks and mines are just a recipe for disaster

[blackpoolhibs]

I don't know if its just me, but football on the telly has become boring, so much so that i pick and choose my games now. When sky first came out, i'd watch any game, in fact no, i'd watch EVERY game.

Now I'm lucky to watch 2 a month, and have gone back to watching match of the day again. If that is normal, and is happening across the country, surely its only a matter of time before figures go down, so tv bids will come down too. I wonder if this scenario will happen, or are there enough new subscribers to offset my boredom, and people like me?

[marinello59]

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But Man U won the EPL, the World Club Champs, the League Cup and were in the latter stages of the Champs League (final) for the season just reported yet without the Ronaldo money of £80m they would've made a loss of £30m (actual fig escapes me at this time).

So unless they sell £40m worth of talent per year and reach the latter stages of all their Cups then they return a loss.

Simply cannot continue.

Having just read up some more on the situation at United I now have to agree with you. Madness. It can't continue.

[Monktonhall 7]

I don't know if its just me, but football on the telly has become boring, so much so that i pick and choose my games now. When sky first came out, i'd watch any game, in fact no, i'd watch EVERY game.

Now I'm lucky to watch 2 a month, and have gone back to watching match of the day again. If that is normal, and is happening across the country, surely its only a matter of time before figures go down, so tv bids will come down too. I wonder if this scenario will happen, or are there enough new subscribers to offset my boredom, and people like me?

Agree 100% with Blackpool Hibs. I'm the same, pick and choose, and watch a lot less now than ever. MOTD2 highlights are great for catching up, and its only a matter of time before the SKY Sports TV starts to dry up in the UK, but the Premiership seem to have it sussed selling rights across the globe, and thats what seems to be making them richer and will probably continue for the next few years.When it does eventually dry up though, the baw is well and truly burst, and already there seems to be several English clubs struggling.They must have borrwed the Yamenomic book on football finances.

[NadeAteMyLunch!]

I like in the clip when it says something along the lines of 'Abramovich has lost a few BILLION in the last couple of yrs but nothing to worry about'. Imagine having enough money that you could lose a few billion and it not be a problem!

[erskine-hibby]

Sky bankrolling the EPL is like the finger in the dam scenario. It will all come crashing down one day

[cockneymike]

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Agree 100% with Blackpool Hibs. I'm the same, pick and choose, and watch a lot less now than ever. MOTD2 highlights are great for catching up, and its only a matter of time before the SKY Sports TV starts to dry up in the UK, but the Premiership seem to have it sussed selling rights across the globe, and thats what seems to be making them richer and will probably continue for the next few years.When it does eventually dry up though, the baw is well and truly burst, and already there seems to be several English clubs struggling.They must have borrwed the Yamenomic book on football finances.

Totally agree have cancelled my sky subscription twice this year, put it back on in the summer to watch the lions and the ashes (I'm tri-lingual what can I say!)

To be honest in the last 3 months of not having it, I've not been bothered at all, I've still got espn for most of the spl, and with the fa cup on itv, there's still more football than I can be bothered to watch anyway!

[cockneymike]

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think in total the family have had the best part of £25 million in fees etc.

There is a complex set up of companies involved from which the family members get loans and fees etc.

There was actually a very good blog on this on the bbc, i think; I can't find it unfortunately; where the journo said that the point of the bond issue is essentially an ocean finance style refinancing, because despite low central bank rates, commercial borrowing rates are much higher and the Glazers are in hock to a couple of NY hedge funds for 10s of millions; paying them double digit interest rates.

As a result the bond issue is actually quite sensible; as they consolidate the debt and the bond dividend - not sure of the technical term - they pay is less than the interest they're currently paying; so much so that they can cut millions and millions off the interest they pay each year.

The other thing though, to do with the sky deal, is that clubs like man utd, want to rip up the sky deal and do what barca and real do, which is negotiate their own deal, rather than do it as a league. That way they don't need to subsidise the Burnley's of this world. I mean seriously Hibs would get more money than Burnley for their TV rights, if it was done this way - and probably a lot more!

There is currently something in the anti competition courts in the EU doing the rounds about this, with the potential to rip up these deals as being cartel like and therefore anti-competitive; and I bet the Glazers are partly hanging out for this, as if it were to happen, then Ka-Ching! Watch the money roll in for the club with the biggest fan base globally. Real get like £200m a year (if memory serves) from their TV right, which is about 4 times what Man U do.

[7Hero]

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If you think that the fall out from the Banking crisis was bad wait until the tidal wave hits the English game

you have lost me here mate, how would the fallout be worse than the banks, im not sure there are many things that could happen in this world (tsunami / earthqquakes / meteorites obviously) that could come close to causing the damage the banks did.

[.SeventyFive]

It all is getting quite ridiculous and as mentioned will eventually come crashing down.

As I don't think there is any substitute for watching a live game (like most real football fans) I don't feel the need to pay for Sky and if I do watch football on TV, I go to a pub.

The novelty will wear off.

[Joe Baker II]

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Sky bankrolling the EPL is like the finger in the dam scenario. It will all come crashing down one day

As said before it will be great news for football in tne rest of the world (and particularly rest of Europe) when it happens but fear it is still some time away - hope I am wrong though.

[HIBERNIAN-0762]

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Does it mention the Glazers taking £10m out the club as well. Absolutely shocking that this is allowed by the football authorities. If you think that the fall out from the Banking crisis was bad wait until the tidal wave hits the English game

Keep yanks out of British football!, they have no love for the sport and it's all money money money with them, look at Liverpool as well, a lesson to be learned here

[Hibernating (Im a stoopid yam tramp)]

The Glazers have wrecked Man U, and as pointed out if the Sky bubble ever bursts it will be RIP United. As a United armchair fan, it does annoy me that some lunatic pre crunch US bank gave the Glazers such monies. Better with a steady owner like Farmer than cheapskate conmen.