ALL issues relating to the bond issue and club finances

Anduin

Yeah, but I just can't see anyone challenging us finishing in the top 3. Bar another sugar daddy coming around, Arsenal, Spurs, Everton, Liverpool et al. are miles behind City, Chelsea and us. It would take a collapse of gigantic proportions for us now to finish outside the Champions League qualification spots, as our squad is simply that good.

Cold_Boy

Hopefully Fergie is there till 2016.

Will Absolute

I've wondered why Chelsea are supporting the new financial restrictions proposed for the Premiership. I guess they believe they're riding the same gravy train, and they truly can break even in the next few years.

MDFC Manager

Are they actually supporting the new regs? IIRC i read that they arent supporting the regs? Them, City and Fulham i think.

Will Absolute

This article http://bleacherreport.com/articles/1...he-alternative says Chelsea are against the new rules, but earlier reports definitely said they were in favour.

mariachi-19

I wonder if the bump on interest caused by Chevrolet's new Corvette has had a slight positive affect on our share prices. It's sparked massive interest in Chevrolet as a brand and they're linked to us pretty heavily.

Devil_forever

Was the prediction released by the club? Source?

steeeb

You can see the source on the image in the bottom right.

Devil_forever

I know but I was looking for the specific link? Was it projected by the club itself?

Keltoi

Why do you expect that to change anytime soon?


Im no financial expert so would someone mind explaining EBITDA? Also who produced this graph? Was it Glazers or someone on the outside doing guess work? Oh and what do they mean by leverage, leverage in relation to what? What is effecting that to go down?

kietotheworld

Articles from the Bleacher Report are as reliable as posts written on here, probably less so. It's just a fan website.

LondonRed

No definitely not. Taken from an analyst/broker report I imagine, was just sent it at work.

As Cold_Boy said, even assuming a 20% margin of error in 2016 (it is after all a long way off and we have a lot of big sponsorhip deals to renew that one can only estimate at this stage) then it looks pretty healthy.

Going to be a cash cow by 2016 - but with an added caveat that these figures assume NO dividends to be paid out in the interim. Clearing £100m+ cash at bank not including player sales screams dividends. I have a feeling any anti-glazer sentiment will die down and then come back with a vengeance when that happens.

Regardless, love them or hate them they clearly know how to run the club. I'm sure they wouldn't be stupid enough to pay dividends to the extent that it sacrifices or impacts on the on-pitch performance and that situation really wouldn't be any different to the pre-Glazer plc model anyway.

Jaybezia

Stock Price up to 15.29 Good signs

Jaybezia

Would i be right in assuming this is because the stock holders or people that have invested will be due payouts if we make a profit? Or have i understood dividends incorrectly?

Will Absolute

The Glazers can pay or not pay dividends as they choose.

Politics will play a big role. I suspect the owners are wary of the fans damaging the club's brand by kicking up another public fuss.

Cevno

We have a Official Paint Partner now.

http://www.manutd.com/en/News-And-Fe...-of-japan.aspx

Keltoi

In fairness as much as I despise the Glazers they have taken up to a whole new level in commercial terms.

Nate Dogg

I'm surprised we haven't got more Japanese partners on the back of Kagawa transfer.

Cevno

Can paint Kagawa different colors each game and replay our debts ?

ISSYNAZAR

I'd love to know how much these 'smaller' deals are worth.

Mamee - The official noodles partner of Manchester United for Asia, Oceania and the Middle East?

That is possibly my favourite one of the lot...official noodles partner. Incredible

SirAF

Credit has to go to the Glazers.. They really have taken the commercial side of the club to another level - hats off to them for that. What will be really interesting is what will happen when the debt is finally cleared, will they milk it for all it is worth? Take out another loan secured against the club? Buy us Messi? ( )

Maagge

Isn't Smirnoff our "Drink Responsibly Partner"? I like that one better. Although a Noodles Partner isn't too shabby either.

Rozay

If we still had Ronaldo, we'd be even more unstoppable from a marketing perspective. If we managed to get our hands on Neymar, it would be a great signing on and off the pitch I reckon. He's the new Brazilian superstar, next generation face of Nike too. If he goes to a club with charisma like ourselves, Barca or Real - he'd make them a shitload of money.

Will Absolute

Why would they take out another loan? What does 'milk it for all it is worth' mean?

The Glazers now own a highly profitable business with excellent growth prospects. There's no reason to change tack when the (increasingly irrelevant) debt finally disappears. They'll continue to work to increase revenues and profits.

When/if the new financial regulations emasculate the sugar daddies, United could assume an even more dominant position - certainly in the Premier League - than they did in the pre Abramovich/Sheik era.

ravelston

EBITDA is an approximate measure of the club's profit on operations before allowance is made for finance charges (interest, etc) and the buying and selling of players. It's a useful guideline to the amount of spendable cash that the club is throwing off (although if you're actually looking at the club's financials, the Statement of Cash Flows is much better).

The graph was produced by outside analysts using public information on future revenues (together with guesswork on the renegotiated Nike deal) and projections of the growth of expenses and the paydown of the debt.

Leverage is the relationship between debt and another financial variable - most commonly equity. In this case they are looking at debt vs. EBITDA. As the amount of debt outstanding goes down (and as EBITDA goes up) the ratio of debt to EBITDA will go down. When the debt is fully paid down, the ratio will fall to zero.

Comsmit

Yes a certain amount of kudos should go to them for addressing the commercial arm, although it's ultimately all for their benefit long term. This trend was definitely required to keep us competitive in the transfer market.

To be fair though the real credit must go to the shit-talking suits who pull of these "partnerships." They are earning their bread...and butter to go with it.

KingMinger22

Where do you see the excellent growth prospects coming from?


The new TV deal is great news. Maybe it will go up next time too but that won't be for four years now.

The Chevy deal is the one thing I think they have done that is impressive in comparison with what our rivals (Real, Barca, Bayern) do. But that is a long-term deal so no growth potential there.

Certainly not match day revenues.

The new TV deal, Chevy will definitely make a massive impact for next year but these are the key deals for us and the subsequent years will surely not see as sizeable increases.

JayWalker

They will have an asset the size of Manchester United without virtually paying a penny for it, I'd say that's not too shabby.

KM

The Nike deal is still up for renewal. Won't be surprised if it's a record breaking deal.

Cevno

Yeah, the Nike deal will be record breaking probably.

And then we terminated the Training kit sponsorship too with DHL, to find something better no ?

Will Absolute

The leisure industry is bound to grow in the future as people worldwide have more and more disposable income to spend. Sport is well placed to cut a big slice of that. Football is the world's biggest sport. Manchester United arguably football's biggest brand.

Look at the growth in revenues in the premiership era - a continuously upward graph. And the last six years have been more impressive still. I see that continuing. There's no reason why it shouldn't.

All our little mini deals are straws in the wind. I'll bet if you asked the Glazers they'd say (or sing) "We've only just begun".

Keltoi

Thanks for the reply mate, helps us average joes understand it better

MPTutd

Share price is now $17.35.

Don't see anyone slagging off the stock now!

Rood

Ye I had been monitoring recently and it has really been motoring along - $12 was a great entry point for anyone who took it!



where are those jokers who valued it at $5?

charleysurf

Should have given Fergie shares! At least somebody who deserves it would be making some money.

Screw you Andersred.

Will Absolute

The club is now worth about £2.3 billion, for anyone interested in buying.

ravelston

They put £270m of equity into the original transaction and more recently paid £250m to pay down the PIKs. So their total investment is around £520m - a little bit more than a penny.

Spoony Kobayashi

Based on that, will they be releasing more shares?

Will Absolute

Am I right in saying that their original risk was just the £270m? If it had gone belly up in the first few years, that's the most they could have lost? Since the Piks were secured against shares in the holding company?

ravelston

That's correct. Then they paid the extra £250m essentially to remove that claim on their shares.