United debt up £137 million

[Red_toad]

https://www.tvnz.co.nz/one-news/spo...ebt-climbs-778m-after-transfer-window-splurge

https://www.football365.com/news/man-utd-post-alarming-figures-as-net-debt-rises-by-137-3m

So our transfer spending is now damaging the club?

 

[Aouer-United]

Nah, not really. Our net debt is total debt minus the available cash we have. Our available cash went down by paying that transfer fee upfront for Maguire and in full rather than paying for it in instalments and our failure to qualify for champions league which we've missed out on £60m, from which contributed to an increase in the net debt of the club by £140m. It's more of reduction in our available cash than a rise in actual debt

 

[Nevilles.Wear.Prada]

Well years of mismanagement and eventually numbers will catch up.

There goes haaland and Sancho guys.

 

[Infra-red]

Net debt.

Not gross debt.

All this means is that we spent some cash (in this case, on players).

Debt ceased being an issue of any significance at United many years ago.

 

[JB08]

There is a clear explanation for this (written above) but I’m sure people will choose to ignore that and keep complaining.

 

[SirAF]

Net debt.

Not gross debt.

All this means is that we spent some cash (in this case, on players).

Debt ceased being an issue of any significance at United many years ago.

This

There is a clear explanation for this (written above) but I’m sure people will choose to ignore that and keep complaining.

That

 

[Adisa]

Our debt is still the same.

 

[JPRouve]

To add to what other have said, the club always has cash and cash equivalents that reserve is used during the season to pay the bills because sponsors and competitions do not pay at the same time or in full at the start of the season. There isn't much to see here.

 

[ivaldo]

It’s scaremongering. I’m sure we will see this repeated relentlessly over the next few months though.

 

[Crashoutcassius]

Debt is up ZERO

Please change thread title or lock thread. Misinformed nonsense

 

[Andycoleno9]

Wow, this thread title is so SUN esque.

 

[TheReligion]

Urghhhh the United forum.

 

[Sandikan]

Debt is great and something all smart businesses do...

Or something.

 

[InfiniteBoredom]

Debt is great and something all smart businesses do...

Or something.

As a matter of fact a gross debt equivalent to 12% of the club’s valuation is quite healthy.

Money isn’t an issue with the club, how it was spent is.

 

[OleTheGreat]

Just end this thread already!

 

[DoomSlayer]

I'm sure people will say it's no problem, we are the richest club in the world and will spend £300 million, starting with £80 million rated Haaland in the January transfer window.

Let's all forget that in the last 5 transfer windows, our net spend is around £120 million (plus Mkhitaryan, if he even counts for much).

 

[MrPooni]

"Alarming figures"



FFS.

By this metric, the Glazers are damned if they spend some of our massive pile of cash and damned if they don't.

 

[Pogba's Barber]

I'm sure people will say it's no problem, we are the richest club in the world and will spend £300 million, starting with £80 million rated Haaland in the January transfer window.

Let's all forget that in the last 5 transfer windows, our net spend is around £120 million (plus Mkhitaryan, if he even counts for much).

Correction - Yes, around £180m over last 5 windows

 

[DoomSlayer]

Correction - Yes, around £180m over last 5 windows

I did actually estimate it at first, it's actually about £140 million, not sure where the other £40 million comes from.

Divide that number by 5 and we spend £28 million per transfer window on average. Even if we take you figure, it takes it up to £36 million.

 

[zenith]

What a sensationalist title . Would expect this from the sun or worse tribal football.

At least put it under the united finances thread where people can be educated on finances.

 

[Josep Dowling]

I did actually estimate it at first, it's actually about £140 million, not sure where the other £40 million comes from.

Divide that number by 5 and we spend £28 million per transfer window on average. Even if we take you figure, it takes it up to £36 million.

Where have you got these figures from? Transfermarkt has our net transfers at £439m over the last 5 years. On average that is £88m a year.

I suppose that doesn't suit the agenda that the Glazers don't give the manager enough money to spend.

 

[DoomSlayer]

Where have you got these figures from? Transfermarkt has our net transfers at £439m over the last 5 years. On average that is £88m a year.

I specifically said 5 transfer windows in my initial post. But the numbers you gave also prove we will not be spending anything near the amount that most fans are dreaming about.

 

[sunama]

Debt is great and something all smart businesses do...

Or something.

Forget the "or something" part.

Debt, as long as you use it wisely, is a great thing to have. The more debt the better BUT only if you are gain more from it, than it costs to service it.
I am trying to get into more debt, for business purposes, but the banks are holding me back.

Now, the kind of debt that most people in this country have (eg, borrowing £5k to go on holiday or to buy another car) - that's bad debt and should absolutely be avoided.
The best way of course, is to buy assets (part funded by debt) and use the cash generated by these assets to service the debt and anything remaining can be used to pay for stuff (including cars or holidays).

 

[red thru&thru]

So City will catch up with us and potentially supersede us next year? Great.

 

[Interval]

I like how dismissive people are being. Yes, net debt is an important figure and its rise shows that we spent more than we made. Could this change the way we conduct business in the near term - yes.

But I guess there will always be a bunch of people who truly believe that we can easily keep spending 250mn+ each year on transfer spends. Wont happen

 

[Dr. Dwayne]

I like how dismissive people are being. Yes, net debt is an important figure and its rise shows that we spent more than we made. Could this change the way we conduct business in the near term - yes.

But I guess there will always be a bunch of people who truly believe that we can easily keep spending 250mn+ each year on transfer spends. Wont happen

When have we ever spent £250 million in a year on transfer fees?

 

[ivaldo]

So City will catch up with us and potentially supersede us next year? Great.

Erm. Ok.

 

[ivaldo]

When have we ever spent £250 million in a year on transfer fees?

When has anyone ever regularly spent £250mil a year?

 

[astracrazy]

Club can't win.

One minute people complain we don't spend enough on players the next minute they moan that in actually buying players it increases our net debt.

 

[Offside]

Club can't win.

One minute people complain we don't spend enough on players the next minute they moan that in actually buying players it increases our net debt.

There's one thing they can do to amend this. Win.

 

[Interval]

When have we ever spent £250 million in a year on transfer fees?

What I meant was that there are always a bunch of people who believe that we can spend 250mn, no problem because of our revenues. Fact is, we are already at the limit of what we can spend. And the cash flows show that

 

[Tom Cato]

I'm sure people will say it's no problem, we are the richest club in the world and will spend £300 million, starting with £80 million rated Haaland in the January transfer window.

Let's all forget that in the last 5 transfer windows, our net spend is around £120 million (plus Mkhitaryan, if he even counts for much).

Friendly tip: dont read headlines and portray them as facta upon which you will form an argument.

What is the problem exactly? We literally tried to offload lukaku for dybala. Its like you think we dont have money to spend.

I, like many others I assume, read the fiscal reports. We have cash, and lots of it. We also have responsible directors that manage the cash well

 

[Tom Cato]

What I meant was that there are always a bunch of people who believe that we can spend 250mn, no problem because of our revenues. Fact is, we are already at the limit of what we can spend. And the cash flows show that

We’re not. Source: finance guy (Im not advocating for spending more, just pointing out that we CAN if the right player is there)

 

[dev1l]

I m not a finance guru but it s quite clear why we didn't sign more players in summer - net spending was capped. Taking into consideration the sale of Lukaku, our net spend in summer was around 75 million gbp. - Not far from the figure mentioned by James Ducker of a max 100 million.
So we may presume that kitty available for January would be - remaining 25 m
+ Matic fee (if he goes)12m?
+ Smalling fee 18m?
That s around 55 m.
+ some funds from next summer - 20m.
Thats not far from the 72m January kitty that was mentioned a couple of weeks ago or so.

So forget all this talk about getting both Sancho and Haaland.

 

[TRUERED89]

Papers just click baiting during IB. They have nothing better to do than spout nonsense, as they know they'll get plenty of readers when its concerning United.

 

[ChaddyP]

GLAZERS OUT !!! we dont spend enough money!

GLAZERS OUT!! we're spending too much money!

 

[mu4c_20le]

Sell Pogba, eliminate debt.

 

[Josep Dowling]

I specifically said 5 transfer windows in my initial post. But the numbers you gave also prove we will not be spending anything near the amount that most fans are dreaming about.

I agree with that, and that’s why I cannot see us signing Sancho or Maddison.

 

[Josep Dowling]

Friendly tip: dont read headlines and portray them as facta upon which you will form an argument.

What is the problem exactly? We literally tried to offload lukaku for dybala. Its like you think we dont have money to spend.

I, like many others I assume, read the fiscal reports. We have cash, and lots of it. We also have responsible directors that manage the cash well

How true is this though? I still believe we had no intention of ever signing Dybala, it was to keen fans quiet into thinking we do try to sign the world’s best players.

 

[Wumminator]

I specifically said 5 transfer windows in my initial post. But the numbers you gave also prove we will not be spending anything near the amount that most fans are dreaming about.

Now check how much money went on wages at the same time.

We are spending a decent amount.