£126,000 per day...

Ericisgod

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Is what's estimated we will have to pay in interest charges if the deal go's through. :( :( :( :(





Furious Manchester United fans are launching a range of club merchandise to bolster a fighting fund to oppose Malcolm Glazer's takeover.

The red and white wristbands bearing the slogan "Not For Sale" will go on sale next week.

They have been produced by the supporters' group Shareholders United.

Profits from sales will go towards undermining the takeover and cut merchandising income to the American millionaire.

Shareholders United vice chairman Sean Bones said 100,000 bands had already been manufactured and would go on sale at an official launch.

Hundreds of fans have been protesting outside Old Trafford through the weekend.

Mr Bones said: "We are not going to take this lying down. We want to show Glazer and the club we have the means to produce merchandise ourselves.

"Our products have the real support of the fans and if we can affect the revenues the club makes through merchandising, we can really hit Glazer where it hurts."

He added that the group had already taken an order for 2,000 wristbands from Denmark.

Fans are also plotting a series of protests and there are fears the FA Cup final against Arsenal on Saturday could be delayed.

Mr Glazer is on the brink of taking complete control of the club. He now has control of 74.81% of the club's shares. The crucial threshold is 75%.

The London Stock Exchange has confirmed that it is possible for shares in the club to be traded over the weekend.

Glazer, owner of the Tampa Bay Buccaneers, has revealed he will carry £265m of borrowings into the deal, which values United at £790m.

Mr Glazer will stump up £272m of his own money for the takeover bid.

It has been calculated that the club will have to pay interest of £126,000 a day on the amount of debt it will be saddled with if the takeover goes ahead.


http://www.sky.com/skynews/article/0,,30000-13348680,00.html
 

GiggsysGirl

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if the interest rate is around 6% that will be about 37million quid (someone check that...maths is not my strong suit) which is more than we make in a year usually.
 

GiggsysGirl

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soccerbest said:
Any idea how is he going to find the money to repay the debts that is going to be huge? :(
it's all been mentioned really, selling players, not buying new ones, raising ticket/merchandise prices.
 

soccerbest

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GiggsysGirl said:
it's all been mentioned really, selling players, not buying new ones, raising ticket/merchandise prices.
or worse still he may mortage our club to the bank. :nervous:
 

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That doesn't make sense. It can't be that high, or he would have never gotten bank financing.

As much of a twat as he is, the banks aren't stupid, and they don't want to lose money. They will believe there is more money to be made, and I can't beleive they would agree to a deal that would require a 50% increase in revenue just to pay the interest of the loan without even touching the principle.
 

GiggsysGirl

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jasonrh said:
That doesn't make sense. It can't be that high, or he would have never gotten bank financing.

As much of a twat as he is, the banks aren't stupid, and they don't want to lose money. They will believe there is more money to be made, and I can't beleive they would agree to a deal that would require a 50% increase in revenue just to pay the interest of the loan without even touching the principle.
they would if they're making him pay insurance.

listen to me making out like i know what i'm talking about :nervous:
 

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GiggsysGirl said:
they would if they're making him pay insurance.

listen to me making out like i know what i'm talking about :nervous:
How do they collect if his United related corporation goes bankrupt?

I'm listening to you, I'm just not hearing logic. :p
 

GiggsysGirl

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jasonrh said:
How do they collect if his United related corporation goes bankrupt?

I'm listening to you, I'm just not hearing logic. :p
:nervous: uh oh...what have i'm talked myself into?

well, i don't know anything about this kind of huge business transaction but wouldn't there be something like PMI? so the bank's covered if he can't make payments.
 

GiggsysGirl

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this is according to Robert Cole....

"Business principles are common sense principles and therefore it is difficult to see how Mr Glazer expects to pay the interest on the £540 million, let alone pay it back. We do not know what the interest rate will be but it is fair to make a guess at 6 per cent. If that is the rate, interest on the £540 million will be about £32 million."
 

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GiggsysGirl said:
this is according to Robert Cole....

"Business principles are common sense principles and therefore it is difficult to see how Mr Glazer expects to pay the interest on the £540 million, let alone pay it back. We do not know what the interest rate will be but it is fair to make a guess at 6 per cent. If that is the rate, interest on the £540 million will be about £32 million."
The team is 'only' being saddled with 270 of that, though. The rest he is essentially 'borrowing' from himself through other business ventures.

And 6% is a ridiculously high interest rate.
 

GiggsysGirl

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jasonrh said:
The team is 'only' being saddled with 270 of that, though. The rest he is essentially 'borrowing' from himself through other business ventures.

And 6% is a ridiculously high interest rate.
hmmm...is that true?

and isn't 6% only a quarter of a percent higher than the average? :confused:
 

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GiggsysGirl said:
hmmm...is that true?

and isn't 6% only a quarter of a percent higher than the average? :confused:
This is not the 'average' loan.

This is a totally different animal.

The collateral is quite likely the biggest sports franchise in the world, and one of the most profitable NFL teams.

He can negotiate a VERY favorable rate, with that sort of shit to back it up.
 

GiggsysGirl

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jasonrh said:
This is not the 'average' loan.

This is a totally different animal.

The collateral is quite likely the biggest sports franchise in the world, and one of the most profitable NFL teams.

He can negotiate a VERY favorable rate, with that sort of shit to back it up.
like i said, this is me --> :confused:

;)