Man Utd almost £1bn in debt

[Compton22]

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Thought it deserves a thread of its own to analyse the economic mismanagement. For a club that prided itself in the last decade of being a pioneer in terms of off the field sponsorship and social media interaction, turns out that it only works when your team is successful on the pitch.

"While the principal debt remains at $650m, a change in the exchange rate meant the club owed £535.7m compared to £477.1m at the same point in the previous year.

In addition, £206.2m has been taken from a rolling credit facility, with another £227.7m owed in outstanding transfer fees. The club did have £31m in cash or equivalent, but the overall sum remains just short of £1bn."

Ouch.

 

[horsechoker]

The Glazers are a cancer.

 

[The Corinthian]

The parasitic leeches are running us into the ground. Can’t wait to see the back of them.

 

[Chief123]

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Thought it deserves a thread of its own to analyse the economic mismanagement. For a club that prided itself in the last decade of being a pioneer in terms of off the field sponsorship and social media interaction, turns out that it only works when your team is successful on the pitch.

I think it also shows what a monster institution Utd is. Despite a lack of success in the last 10 years and to have wasted a large chunk of £1 billion on failed transfers, most other clubs would have folded.

 

[TheReligion]

Aren’t spurs in 1.2bn of debt out of interest?

 

[Tibs]

feck the bastard Glazers!!!

 

[C'est Moi Cantona]

How what they have done to us was ever deemed legal is beyond me.

They really should be having the club physically taken from them at this point.

 

[horsechoker]

Aren’t spurs in 1.2bn of debt out of interest?

No I don't think the interest is 1.2bn

 

[humdinger]

Completely mismanaged for years and years. The Glazers didn’t give a shit about club performance, just collecting their millions of pounds worth of dividends while lumping debt onto the club. And here they are trying to squeeze more money out of the sale. Every penny they get out the sale is a penny less to put into club infrastructure etc. feck them. The sooner they are gone the better.

 

[dove]

Debt is fine, nothing to worry about lads. Or so we are constantly being told here.

 

[Nou_Camp99]

Aren’t spurs in 1.2bn of debt out of interest?

I believe so but they are in that debt to a much needed stadium. Similar to what Arsenal did with the Emirates.

We are in that amount and still need a new stadium / current stadium facelift.

It's an absolute mess. I wish nothing but horrible things on the Glazer family and I don't even care how that bad that makes me look. They are everything that is wrong with the world.

 

[rimaldo]

Aren’t spurs in 1.2bn of debt out of interest?

at least that’s only due to paying off poch and conte. ours is due to buying maguire.

 

[TheReligion]

Debt is fine, nothing to worry about lads. Or so we are constantly being told here.

Who is constantly telling you that?!

 

[Leftback99]

Grim

 

[OleGunnar20]

I believe so but they are in that debt to a much needed stadium. Similar to what Arsenal did with the Emirates.

We are in that amount and still need a new stadium / current stadium facelift.

It's an absolute mess. I wish nothing but horrible things on the Glazer family and I don't even care how that bad that makes me look. They are everything that is wrong with the world.

I feel the same to be honest. Heartless leeches, running an institution into the ground for the sake of greed alone.

 

[Chief123]

Aren’t spurs in 1.2bn of debt out of interest?

Yes something like that which is mostly stadium cost I believe. I’ve not put any effort into understand why their debt doesn’t attract much media attention though. I saw they were at the top of teams in premier league who are in debt. Most debt with least success out of the bigger clubs.

 

[tomaldinho1]

Glazer business model 101 at work

 

[cyberman]

Not sure why the owed transfer fees are included in there and the exchange rate is cheating a bit since the debt isn’t in Sterling.
Still way too high but there’s a reason we’re being sold

 

[Rightnr]

Debt is fine, nothing to worry about lads. Or so we are constantly being told here.

If you knew anything about business, you wouldn't be worried.

Or something like that

 

[AndySmith1990]

And to think those scumbags will still walk away with billions. Cnuts

 

[SuperScoot]

Makes you proud that we have been trying to compete with other clubs including the oil rich City, whilst being completely mismanaged, and run into the ground by those incompetent owners of ours.

The Glazer/Woodward era oversaw the greatest football club in the world turn into an also ran. We have only this season under Eth turned a corner, but find ourselves £1bn in debt, in need of more squad and stadium investments, and the Glazers have ran out of wriggle room trying to solve it, whilst importantly to them not being able to take a dividend any longer - Glazer = Parasite literally

Only MUFC could have survived this period, without being relegated or worse gone under.

If they don't go now, then there needs to be a mass fan revolt on an epic scale.

 

[Nou_Camp99]

And to think those scumbags will still walk away with billions. Cnuts

They should get their 330m back and everything else should stay with the club. Obviously that wont happen but the fact they can walk away with 6bn honestly sickens me. The club paid for more than half of their buyout price for them.

Horrible family. Wish nothing but bad things on them. Hopefully someone catches up with them one day and knocks them on their inbred backsides.

 

[Bastian]

And to think those scumbags will still walk away with billions. Cnuts

Yeah, it's incredible unjust. I think a governmental takeover a la Chelsea is more in order for us than it was for them. Force a sale, set a relatively fixed price, ensure that all the debt is paid from the proceeds of the sale and watch them walk away with a lot less.

 

[Pronewbie]

The ugly side of American oligarchy and rentier economy in a nutshell. But hey, are you not entertained?

 

[PaulScholes99]

If you knew anything about business, you wouldn't be worried.

Or something like that

Of course not meant serious - but honestly these threads are really funny. So many people that assume to have knowledge about billion dollar companies. Meanwhile i am sitting here, studying a worldwide top 20 ranked quantitative finance masters program, and still acknowledge that i have no idea about the way such business‘ are run.

 

[Dr. Dwayne]

Click bait. If you looked at all clubs they would likely have outstanding transfer fees simply because they tend to be paid in installments. It's unlikely that a club would be required to settle all of those debts at once.

Likewise, a revolving credit facility, aka line of credit is give to individuals or entities that are deemed credit worthy, not destitute.

The only item of note is that a variance in exchange rates has increased the debt held from the leveraged buyout.

 

[I Am Zlatan]

I can’t wait see them gone! I really hope they sell or we are completely doomed.

 

[Rightnr]

Of course not meant serious - but honestly these threads are really funny. So many people that assume to have knowledge about billion dollar companies. Meanwhile i am sitting here, studying a worldwide top 20 ranked quantitative finance masters program, and still acknowledge that i have no idea about the way such business‘ are run.

You can study another 5 masters, mate. And maybe by the end you'll realise university doesn't teach you shit but is about connections.

 

[Abraxas]

I don't get why they've rolled transfer fees into it. That's the ordinary course of business in football. I get that this is technically the headline figure owed, but it's rather unconventional to show it this way. Obviously trying to really drive home quite an alarmist point with this.

That said, it's still pretty alarming. Ultimately the Glazers don't care. The valuation has always been the endgame for them. The rest is just theatre around that.

 

[Semper Fudge]

You can study another 5 masters, mate. And maybe by the end you'll realise university doesn't teach you shit but is about connections.

He was agreeing with you.

 

[Sandikan]

Debt is fine, nothing to worry about lads. Or so we are constantly being told here.

It's certainly less to be worried about with a business than an individual.
Imagine an individual just casually racking up millions in debt, but being able to carry on day to day and make big purchases!

 

[NFM]

Click bait. If you looked at all clubs they would likely have outstanding transfer fees simply because they tend to be paid in installments. It's unlikely that a club would be required to settle all of those debts at once.

Likewise, a revolving credit facility, aka line of credit is give to individuals or entities that are deemed credit worthy, not destitute.

The only item of note is that a variance in exchange rates has increased the debt held from the leveraged buyout.

And the exchange rate has currently gone the other way, thus reducing the sterling denominated debt. But honestly, do you think facts matter?

 

[Pexbo]

People still think the Glazers are going to restructure and take on more debt rather than take the money and run.

 

[Skills]

Yes something like that which is mostly stadium cost I believe. I’ve not put any effort into understand why their debt doesn’t attract much media attention though. I saw they were at the top of teams in premier league who are in debt. Most debt with least success out of the bigger clubs.

That's precisely why it doesn't get attention. It's capital expenditure into the clubs infrastructure.

Our debt does nothing for the club.

 

[Dr. Dwayne]

And the exchange rate has currently gone the other way, thus reducing the sterling denominated debt. But honestly, do you think facts matter?

Not when it comes to riling up the United fanbase!

 

[red thru&thru]

Don't worry, Elliot will save the day.

 

[Skills]

I still believe some of the spending last summer was completely negligent. Looking at Antony specifically.

 

[Niemans]

Not sure why the owed transfer fees are included in there

Click bait. If you looked at all clubs they would likely have outstanding transfer fees simply because they tend to be paid in installments. It's unlikely that a club would be required to settle all of those debts at once.

I don't get why they've rolled transfer fees into it. That's the ordinary course of business in football. I get that this is technically the headline figure owed, but it's rather unconventional to show it this way. Obviously trying to really drive home quite an alarmist point with this.

Well, to make the figure bigger, create alarmism and that there are more visits.

The same thing has happened to Barcelona. The debt with other clubs and even with Messi is in installments and they add it.

 

[UnitedSofa]

I still believe some of the spending last summer was completely negligent. Looking at Antony specifically.

Not sure if that’s relevant to be totally honest

 

[Woziak]

Glazer business model 101 at work

Exactly and people still think they are trying to stay, they owe money on The Buccaneers as well, simply put they must sell the club this summer or might risk losing any chance of a huge payday of £5-5.5bn offered currently.