David Gill: "financial woes? you're having a laugh"

SAred · 15th January 2009, 06:43

Surely with the drop in interest rates around the world this will only mean good news for the Glazers servicing that debt. That is of coarse they didnt take out a fixed rate.

peterstorey · 15th January 2009, 07:51

Quote:

Originally Posted by WeWonItTwoTimes

That really isn't a good article. Again, written by a sports journalist who doesn't know what he's talking about, trying to create something out of nothing.

He has the advantage over most of the other sports journalists of at least having the sophistication not to just look at MU plc and also points out that you made a loss. He also doesn't just brush the PIKs under the carpet as some self-styled experts do in order to turn a loss into a profit.

Quote:

Originally Posted by WeWonItTwoTimes

There is at the very least a £250m positive gap in that comparison.

Must try harder.

I doubt ManU would be valued at £1bn in the current climate, with a debt of £800M+ by now it's a moot point as to whether your liabilities exceed your capitalization and the delta is getting smaller.

WeWonItTwoTimes · 15th January 2009, 08:28

Quote:

Originally Posted by peterstorey

He has the advantage over most of the other sports journalists of at least having the sophistication not to just look at MU plc and also points out that you made a loss. He also doesn't just brush the PIKs under the carpet as some self-styled experts do in order to turn a loss into a profit.

I doubt ManU would be valued at £1bn in the current climate, with a debt of £800M+ by now it's a moot point as to whether your liabilities exceed your capitalization and the delta is getting smaller.

I haven't brushed the PIK loan under the carpet. I've acknowledged it's importance but have merely pointed out that at present the interest accrued on the loan doesn't have to be paid for.

Even if you include the rolled up interest in the profit and loss account, Red Football Shareholder Limited still effectively broke even in 07/08.

The debt we know about comes to c£700m but there is inevitably more out there, hiding in the US holding company.

I'd value United at £1.25bn.

A Forbes article on another thread values United at £1.2bn.

theimperialinn · 15th January 2009, 09:11

Quote:

Originally Posted by peterstorey

There's quite a good article here:

http://www.dailymail.co.uk/sport/foo...each-760m.html

How they can suggest that united are being affected by the credit crunch from these accounts is beyond me. They are for June 2007. We will need to see the June 2009 & 10 accounts to properly access the impact. I can't believe a journalist failed to realise this.

theimperialinn · 15th January 2009, 09:21

Quote:

Originally Posted by Escobar

You have the reports, financial statements etc. So far, we increased our turnover and made profit. So to now think we wont do that is a big assumption.

We make an operating profit, overall we make a huge loss.

theimperialinn · 15th January 2009, 09:24

Quote:

Originally Posted by MDFC Manager

My economics is quite weak but i was wondering whether the yearly payments reduce our debt as we go along?
I mean if we are having a debt of 600 million and pay 60 million yearly does it mean the debt is gone in 10 years? Note that i havent included interest in my example.

We are not paying off any of the capital at the moment and we dont have to for a few years. We could not afford to repay £60m capital a year plus make the interest payments. Read into what Gill is saying. He is talking about our ability to service the debt, ie pay interest, to think we could make capital repayments as well is a pipe dream.

theimperialinn · 15th January 2009, 09:26

Quote:

Originally Posted by lysglimt

What one should remember though - is that last fiscal year did not include the new TV-deal and our new sponsor agreements with numerous companies valued at £2-2.5 mill a year (I think we have signed 2 new ones - in addition to the Smirnoff deal I read about in another post - but I don't know how much that one is worth)

So this alone easily adds up to £30-35 million a year - in addition to the higher ticket prices (which we could have done without), doing better in the C.L etc

I would be surprised if we don't break £100 million profit for next fiscal year

Not a chance!!

theimperialinn · 15th January 2009, 09:28

Quote:

Originally Posted by kuanteen

Surely the declining interest rates are helping us out so long as the revenue continues growing or at least remains constant?

No because they hedged against fluctuations in the interest rate.

Therefore whether the rate goes up or down our interest payments remain the same.

RedCafe.net

The Leading Manchester United Forum

Member's Login

David Gill: "financial woes? you're having a laugh"

Latest Forum Topics

Jump to Forum

Not yet registered?

15th January 2009, 06:43	#41 (permalink)
SAred Reserve Team Player Join Date: Jul 2005 Location: Lee Martin Scores , Sir Alex legacy begins Posts: 1,600	Surely with the drop in interest rates around the world this will only mean good news for the Glazers servicing that debt. That is of coarse they didnt take out a fixed rate.