Mystery Chinese investor wants to buy Man Utd

Discussion in 'Manchester United Forum' started by Adnan, Aug 5, 2017.

  1. Aug 10, 2017

    Revan Full Member

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    This should be wrong, right? The club's valuation is circa 3b, but 11% of it is worth 55m? Either math doesn't check or I am missing something.
  2. Aug 10, 2017

    KM I’m afraid I just blue myself

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    It's two percent. This Kaveh guy is clueless.
  3. Aug 10, 2017

    Revan Full Member

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    That makes perfect sense. 2% at 55m puts the evaluation of the club around 2.75b which kind of matches.
  4. Aug 10, 2017

    KM I’m afraid I just blue myself

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    It's also two percent of the share Glazer owns which is 80%.
  5. Aug 10, 2017

    IWat New Member

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    People banging on about debt and how it should be wiped out really don't understand how finance and organisations work. The amount of debt itself is not the issue, it's the debt to equity ratio, for us that is 1.13. To put that into perspective, Apple have a ratio of 0.81, Microsoft 1.19 and Google is something daft like 0.04. The fact that we were so lowly geared in the first place is why the Glazers were able to do a leveraged buyout (LBO) in the first place, where you borrow a shit load of money and use the assets of the company you buy as the collateral on the loan you take out which you can get away with as the company has so little debt of it's own tied to its asset. It's what is known in finance as a 'free lunch', you borrow the money, if it all goes up shits creek then you no longer own the company and the companies assets get stripped to pay the debt. Google get away with such a low gearing because a) they're swimming in cash and don't need to borrow and b) they're so big they don't need to worry about an LBO because no bank can issue a $600bil loan.

    Debt is about as cheap as it has ever been, it's not going to stay that way though for that much longer. It's going to be very interesting to what happens when interest rates rise and servicing what is a fairly large debt to equity ratio becomes more expensive. The fact is, even if the Glazer's wanted to pay it off, which makes little sense while it is still cheap, they probably don't have the liquid capital to do so.
  6. Aug 10, 2017

    arthurka Full Member

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    Sowing the seeds..
    Plus it´s tax deductible...
  7. Aug 10, 2017

    I Believe New Member

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    I suspect this is part of the 'launch' to acquire EPL information on club management etc. via the backdoor. The Chinese are setting up a football league system what they hope will, over time, rival the PL as a world wide platform for their industries and commercial activity and sponsorship. They have experienced some problems recently in payments to players, and what might be described as 'cultural' differences when importing foreign players. By taking a stake in a large multi-million pound business, not only will they take the profits, but will have legitimate access to the information on the workings of the PL, with large clubs in particular.

    Wasn't it Chairman Mao who said "a thousand mile march, starts with the first step", the Chinese tend to think and plan not in 5 or 10 year cycles, but because of their system of government its more like 50 or even a hundred years ahead. This is just the beginning! :smirk::D
  8. Aug 10, 2017

    ATXRedDevil Full Member

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    Shhh, get out of here with your facts and understanding of finance...
  9. Aug 10, 2017

    ATXRedDevil Full Member

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  10. Aug 10, 2017

    Fraser76 New Member

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    Funny enough I work for Al Waleed and he has suddenly taken up an interest in Football. He watched the game this week. I would not want him involved with United though. He has lots of money but he does not like spending it.
  11. Aug 10, 2017

    Xeno Full Member

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    The only thing I took from the prospectus was this:

    To maintain our high standard of performance we anticipate a higher level of net player capital expenditures and player wages to retain talent and enhance the caliber of our team in the near term.
  12. Aug 10, 2017

    MoskvaRed Full Member

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    Having gone through the era of austerity with the Glazers (particularly the failure to build on 2008), I don't see any compelling reason to wish for their departure now they have hugely increased revenues and are reinvesting a substantial proportion in the team. There is no individual in the world rich enough to move the dial relative to Abu Dhabi (City) and (for now) Qatari (PSG) sovereign wealth funds and it is even less desirable when you take into account the political risk and opacity associated with individuals in the likes of China and Saudi.
  13. Aug 10, 2017

    yumtum DUX' bumchum

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    I know a millionaire who is so tight it's unreal, lives in a 3 bed, his wife drives a 5 year old Mitsubishi jeep, while he drive an Audi Q5 (he won about £7m on the lotto) and I just don't get it?

    Obviously having billions, there's no real danger of it suddenly running out so I don't get how he's tight, or is he tight in terms of being a billionaire? :lol:
  14. Aug 11, 2017 at 08:14

    finndt New Member

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    Billoinaires have been playing their real life fantasy league for quite a while. I prefer our club the way it is. Without a mystery Chinaman or any other sugar daddy for that matter. But I find it weird that none of them has yet taken over the club. I mean Abramovitch for example. Imagine if he had invested on United instead of Chelsea in the early 2000. We would have been way above any English club for years with his money and our huge brand.

    Pushing Chelsea or especially City to the level they are atm has been twice the effort and cost it would've been with us.

    We're still one of the biggest and most recognizable sports brand on the planet. I would imagine it has to be a matter of time before some money man decides to take over the club. I'm also afraid that it's the only way we'll stay on the top (huge competitive club) for the next decade or two.
  15. Aug 11, 2017 at 08:53

    JohnnyKills Full Member

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    With our revenues, I don't think we need someone to 'do a City' with us. It might just be a case of someone pumping in 50m a year to top up the commercial streams with direct investment, to ensure we can compete with the steroid clubs.
  16. Aug 11, 2017 at 10:00

    finndt New Member

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    But for how long? That's the crucial question.

    If the transfer fees keep rocketing and I'm sure they will, revenues won't be enough. We won't necessarily be seeing players come and go for 200m+ on a daily basis but more and more 100m players are being sold and bought. It's already started. Sheiks and oil states are not going to be running out of cash anytime soon. That's for sure. To be able to compete in the transfer market with only our revenues to splash, it would require our revenues growing at the same rate these sugar daddies increase their spending. And not even Eddy boy can achieve that.

    As a pessimist I believe these crazy days won't be coming to an end before something serious and concrete is happening in the world and global markets. I mean something way more important and bigger than football. Something that affects every single country and business. After all football business in only a hobby, a serious one though, for the ones who are financing this circus.

    I've said it before and I'll repeat it: This won't last forever but let's try to keep up and enjoy it while we still can.
  17. Aug 11, 2017 at 11:57

    Lastwolf Full Member

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    11% of the tradeable shares, only a percentage of the shares are traded/ tradeable.
  18. Aug 11, 2017 at 20:50

    KingMinger22 City >>> United. Moaning twat

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    I'd love a sugar daddy personally.

    They don't need to put any money in. Just let the club reinvest every penny it makes like Real and Barca.
  19. Aug 11, 2017 at 20:55

    arthurka Full Member

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    Add 100m + every year.. Would be nice.
  20. Aug 12, 2017 at 08:04

    RoyH1 Full Member

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    I suppose the Chinese like our colours, so.
  21. Aug 12, 2017 at 08:13

    MDFC Manager Full Member

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    Real and Barca pay dividends to shareholders too.
  22. Aug 12, 2017 at 09:04

    psychdelicblues Full Member

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    Real and Barca do not have shareholders as they are not a PLC. So how can they pay dividends?
    They are owned by the fans/members.
  23. Aug 13, 2017 at 00:35

    Adnan Twitter machine

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    That's incorrect
  24. Aug 13, 2017 at 00:39

    IWat New Member

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    You realise private companies can have shareholders and issue dividends right? Not saying Real or Barca do as I don't know.