To make up for the Adidas money we'll be losing from next year once we miss out on Champions League football.
Glazers to generate $400m by selling 24m Class A shares (apparently not)
- Thread starter RonaldoVII
- Start date
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In the latest episode of the United Hour Podcast, Nik and Imran hold a long overdue conversation about United's awful league form with 1 win in 7. They discuss a disappointing draw at Bournemouth, a not so disappointing draw against Liverpool and a crushing defeat at Chelsea - Is time nearly over for Erik Ten Hag?
Then in a special second half of the pod, Nik welcomes Natalie ( https://twitter.com/natalie_17) to discuss the fortunes of Manchester United Women as they booked a place in the FA Cup Final after a historic first ever win vs. Chelsea.
I could see them seriously considering walking away. With their leveraged buy out and putting very little of their own money into the club they could leave with at least 2 billion profit for what has been a 14 year investment.
Why would they want to leave? To me it’s simple. Football has changed. Players cost a fortune, and player contracts keep going up and most of all they lost their security blanket in Sir Alex. They had to invest very little and would reap huge rewards financially. Now they have to invest a lot and those rewards are not guaranteed. If this continues going this way they might not get an offer as high as they can now.
Why would they want to leave? To me it’s simple. Football has changed. Players cost a fortune, and player contracts keep going up and most of all they lost their security blanket in Sir Alex. They had to invest very little and would reap huge rewards financially. Now they have to invest a lot and those rewards are not guaranteed. If this continues going this way they might not get an offer as high as they can now.
It's just a registration statement saying that the club might raise money by various means and the Glazers might sell some shares. Nothing more. It's a recurring filing.
They might just be doing it for the laughs.
Cheers. I doubt they will clear the debt or fix the stadium at any point.
This needs to be added to the title:
These two posts right next to each other just made me chuckle #Glexit
I'm sorry i don't understand what the shares all means. Can someone explain it easier terms. Will it means the Glazers gonna sell the club?
To be honest I wish far worse on them that. I know that sounds harsh but there you are. They are a fecking cancer and need to be destroyed.
Exactly this.
What's so hard to understand about it? They are selling off shares to raise capital but those shares are pretty much worthless when it comes to having a say at the club. They are purely for people to make a quick buck and make the Glazers richer essentially.
This doesn't make the sale of the club any closer basically.
That remix is straight fire bruh
Isn't that a good thing? Because usually the one say shareholders want to have is that the business needs to do whatever it can to protect the value of their investment. That means cutting costs and increasing profit.
If I was a shareholder, I'd be wanting the club to curb it's spending massively considering the way the club has wasted money in the last few years in poor transfers and a massive wage bill.
You missed the bit where he said good for us. It's not. It's good for them. That's what I'm getting at. Shares with little to no voting rights doesn't put any pressure on them at all.
This isn't a good thing for us.
From my experience this is a classical corporate “have your cake and eat it too”!
Using a timeline it started in the summer 2018. I assume the owners gave the board instructions to;
a) reduce investments
b) cutting costs
c) shifting focus from increasing revenues to maximize profits
It all make sense.
In the summer 2018 we saw Woodward using the handbrake regarding buying new expensive players. He started to shifting high incomes against low or median incomes.
Mourinho (high) against Solksjaer (low median)
Lukaku and Sanchez (high) against James and Greenwood (low)
Fellaini and Herrera (median) against McTominay and Pereira (low)
Valencia, Darmian and Smalling (median) against Tuanzebe and Dalot (low)
Selling assets 2019
Lukaku
Fellaini
Maguire and AWB was a huge long term investments t but both are English and on relatively speaking median incomes. So that also make sense in this scenario. We need to blend young academy players with proven quality.
Next summer (2020) we will probably see the departure of Matic, Young and one of Jones/Rojo. All of them are on median incomes. It’s possible we sell Pogba (high income/huge asset) and reinvest some of it in younger players with low or median incomes.
Yesterday the owners opened the door to sell more shares. From my perspective that’s the next logical step if they want to “cash in”. We have already heard the rumors about a Saudi takeover. I assume more rumors will come.
We saw from last financial report that we estimate a lower turnover in 2020. The owners are scared that this will reduce the value of the club. That why we so dramatically lowering our costs in order to keeping our profits high. Typical behavior of defensive owners.
Shifting Mou against Ole was another indicator. From a vocal and controversial character to a loyal and diplomatic person who is (over) positive and can follow corporate instructions. On top of that a ex player and a legend who has the fan base behind him. Bingo!
Next crucial indicator will be how we handle Paul Pogba. Selling him and mission is completed.
Using a timeline it started in the summer 2018. I assume the owners gave the board instructions to;
a) reduce investments
b) cutting costs
c) shifting focus from increasing revenues to maximize profits
It all make sense.
In the summer 2018 we saw Woodward using the handbrake regarding buying new expensive players. He started to shifting high incomes against low or median incomes.
Mourinho (high) against Solksjaer (low median)
Lukaku and Sanchez (high) against James and Greenwood (low)
Fellaini and Herrera (median) against McTominay and Pereira (low)
Valencia, Darmian and Smalling (median) against Tuanzebe and Dalot (low)
Selling assets 2019
Lukaku
Fellaini
Maguire and AWB was a huge long term investments t but both are English and on relatively speaking median incomes. So that also make sense in this scenario. We need to blend young academy players with proven quality.
Next summer (2020) we will probably see the departure of Matic, Young and one of Jones/Rojo. All of them are on median incomes. It’s possible we sell Pogba (high income/huge asset) and reinvest some of it in younger players with low or median incomes.
Yesterday the owners opened the door to sell more shares. From my perspective that’s the next logical step if they want to “cash in”. We have already heard the rumors about a Saudi takeover. I assume more rumors will come.
We saw from last financial report that we estimate a lower turnover in 2020. The owners are scared that this will reduce the value of the club. That why we so dramatically lowering our costs in order to keeping our profits high. Typical behavior of defensive owners.
Shifting Mou against Ole was another indicator. From a vocal and controversial character to a loyal and diplomatic person who is (over) positive and can follow corporate instructions. On top of that a ex player and a legend who has the fan base behind him. Bingo!
Next crucial indicator will be how we handle Paul Pogba. Selling him and mission is completed.
I don't understand how them selling off voting rights would be good for us? What kind of people do you think those shares word end up in the hands of anyway?
Its not gonna happen lads. United is a cash cow to the Glazers and until some multi billionaire makes an offer they can't refuse they will not sell. Even if there were voting rights, they'd never make enough available to actually put their decision making at risk and the eventual buyers of said votes are unlikely to be football men anyway.
The only hope is that any shares sold are done so to at least partly make funds available for a significant one-off investment in the squad next summer.
The only hope is that any shares sold are done so to at least partly make funds available for a significant one-off investment in the squad next summer.
Any savvy investors think now is a good time to buy?
Or you're better off waiting till next year, once we finish 2 consecutive seasons outside of the top 4 and have to write off a chunk of the Adidas income? That should crash the share price a fair bit?
Or you're better off waiting till next year, once we finish 2 consecutive seasons outside of the top 4 and have to write off a chunk of the Adidas income? That should crash the share price a fair bit?
Wait for Brexit, most likely. By then £3bn will be equivalent to a dime.
Is Brexit really going to have a massive effect on the business of the club? Or will it just be the downturn in economy, which will mean less money for people to spend on season tickets/sky & TV income?
well that killed my buzz pretty quick
Doesn't matter who buys United? Seems for some it's a matter of anyone but the Glazer's
I read a few years ago it was a 50 50 split. 3 wanted to sell up but Joel and abram talked them out of it. Maybe its waivering
This needs to be emphasised more in the thread. This is a nothing update.
And Ed after yesterday for me, it’s like buy one get one free.
What are you talking about?
It will happen sooner or later when the mismanagement of this club has caused it to deteriorate further. The new tv-deals might extent the profitability of this club by 2-3 season but with no CL-money, saturated commerical opportunities and long expensive deals on a number of players will make us less profitable in the future. And if they do not invest in the squad each summer then we are more likely to fight a relegation battle than for a top 4 spot.
The shares sold, and they will sell them, will be pocketed by the Glazers.
What if they sell and we get someone even worse? What if the new owners drive up the dept again, the same way the Glazers did when they first came? I would like them gone too. But everyone seems to think if they sell it will be an automatic improvement. It could easily get even worse.
Well if the glazers go so does Ed, it’s a twofer, not hard to understand.
Doesn't matte to some as they seemingly think the Glazer's are as bad as it gets. They're obviously not though.
You said "Ed after yesterday" so I assumed something came out then.
Unless the Saudi's buy the club this would probably be the case
Ah sorry, some of the comments he made about not needing a DOF and his strategy is working which was bizarre.
Will have to find that.
Hahahahah!
Seriously though, I don't know finances, no idea what this could mean really.
I always think, better the devil you know.
Apart from the moral issues, someone in SA might be worth £50bn today and be in prison tomorrow. That's how volatile the place is ubder that madman.
If people look at the last six years, out operating profits are actually quite low compared to some of our rivals like Liverpool and Spurs. We actually do invest in the team. Just do it badly. Most of our problems seems to be organisational on the football side not a lack of investment.
Apart from the moral issues, someone in SA might be worth £50bn today and be in prison tomorrow. That's how volatile the place is ubder that madman.
If people look at the last six years, out operating profits are actually quite low compared to some of our rivals like Liverpool and Spurs. We actually do invest in the team. Just do it badly. Most of our problems seems to be organisational on the football side not a lack of investment.
I’d assume the glazers. whoever buys it its an investment obviously - buying into future sale price and dividends. Interesting to see if the money goes on the stadium or debt or players. But doubt it
Great post. Thank you.
A very good post. Sensible reading of business decisions behind the football stuff. I think currently the method of clearing out the overpaid garbage and replacing with young hungry players is a good step. By coincidence. I think Pogba will go. The proof of the pudding on this ‘young british’ issue will be if he does go we sign a big replacement and do we carry on with our young english policy if it involves writing a blank check for Maddison or Sancho? My suspicion would be no.