What happens with the debt now Sir Jim has completed his buy-in?

[RedRocket9908]

What happens with the debt now Sir Jim has completed his buy-in?

Shiekh Jassin promised the debt would be fully cleared as soon as possible if his takeover was successful however the Glazers went with Sir Jim's offer instead and as far as I can see Sir Jim hasnt said anything about what happens with the debt if anything.

Will the Glazers pay any off with the money from Sir Jim?

Will Sir Jim pay any off?

Will it be restructured with a proper plan in place to clear it within a reasonable time period?

I cant see how we can be looking at building a new stadium or refurbishing the current one at this moment when the simply cant afford it due to carrying £1bn worth of debt.

 

[The Cat]

There is no way Sir Jim tackles it when he doesn't own 75% of the club.

 

[Withnail]

There is no way Sir Jim tackles it when he doesn't own 75% of the club.

Maybe and maybe not. I don't see him paying it off but it's up to 1billion now isn't it? So I think he'll have to ensure it's managed down over the coming seasons.

As for the OP mentioning Jassim paying it off. Let's not quote the promises of someone who it turns out was never seen as a serious bidder.

 

[foolsgold]

I think the present debt is probably forever, the focus will be on rolling it over at the lowest possible costs.

As we grow revenue it will become a smaller part of the overall picture in percentage terms.

 

[Woziak]

This has been out on hold until Sir Jim has at least 51% ownership and full control, there was something mentioned with a small down payment when he was looking to buy all 69 of the Glazers and then used increase revenue to pay some of the debt of yearly. But for now this will be on hold and then rescheduled in 2025.

 

[stevoc]

What happens with the debt now Sir Jim has completed his buy-in?

Shiekh Jassin promised the debt would be fully cleared as soon as possible if his takeover was successful however the Glazers went with Sir Jim's offer instead and as far as I can see Sir Jim hasnt said anything about what happens with the debt if anything.

Will the Glazers pay any off with the money from Sir Jim?

Will Sir Jim pay any off?

Will it be restructured with a proper plan in place to clear it within a reasonable time period?

I cant see how we can be looking at building a new stadium or refurbishing the current one at this moment when the simply cant afford it due to carrying £1bn worth of debt.

Jassim said a lot of things, who knows if it of them were real or fantasy.

 

[Rood]

What happens with the debt now Sir Jim has completed his buy-in?

Nothing - it all remains exactly the same

That was one of the major reasons I preferred the Sheikh Jassim bid

And yes there are major questions about how a new stadium will be financed but seems Sir Jim is already working on it so he must have a viable plan

 

[Marcelinho87]

Debt was never the issue, mismanagement of said debt was.

no new debt to be added and an actual plan to reduce/tackle the debt over a period of time is what I suspect but the club having debt gives some benefits like lower tax rates.

the Qatar bid was all hot air.

 

[Regulus Arcturus Black]

Shiekh Jassin promised the debt would be fully cleared as soon as possible if his takeover was successful.

The fake Sheikh was full of shite, all bark and no bite.

 

[Cloud7]

Everytime these discussions come up I am reminded that I understand nothing of how debt works on the scale of countries and large companies

 

[arnie_ni]

Nothing - it all remains exactly the same

That was one of the major reasons I preferred the Sheikh Jassim bid

And yes there are major questions about how a new stadium will be financed but seems Sir Jim is already working on it so he must have a viable plan

What bid?

 

[Lentwood]

What happens with the debt now Sir Jim has completed his buy-in?

Shiekh Jassin promised the debt would be fully cleared as soon as possible if his takeover was successful however the Glazers went with Sir Jim's offer instead and as far as I can see Sir Jim hasnt said anything about what happens with the debt if anything.

Will the Glazers pay any off with the money from Sir Jim?

Will Sir Jim pay any off?

Will it be restructured with a proper plan in place to clear it within a reasonable time period?

I cant see how we can be looking at building a new stadium or refurbishing the current one at this moment when the simply cant afford it due to carrying £1bn worth of debt.

The debt is a complicated subject. Of course we'd be better off without it, that goes without saying. It also feels grossly unfair that a club that was previously one of the most commercially successful in World football has been artificially saddled with debts whilst rivals have money poured in from sovereign wealth funds.

All that being said, debt does not necessarily prevent us from achieving our objectives. Most of us have huge debts - mortgages, car loans etc....Most corporations have large debts to banks or investors.

Problems arrive when either-.

1) The interest payments are huge and difficult for the debtor to manage. See Glazer PIK loans between 2005-2012 or, for the personal finance equivalent, think something like a payday loan.

2) The debt keeps going up. Even if the interest payments are seemingly manageable, debts spiral out of control because the individual/corporation keeps borrowing. We have seen this recently at United. The debt is going up now, not because the interest payments are unmanageable but because we keep wasting hundreds of millions on dud players.

Basically, the simple answer is - we need to be ran better.

For the last decade or so, we have acted like a Wall Street banker who is bringing in $3m a year in salary but is still barely solvent because they are mortgaged up to the eyeballs, have expensive pools, cars and second-homes to service and are burning cash on drugs and booze!

The amount of money coming in is not our problem. Its how we're spunking it that is the issue.

I'm confident that SJR and the new executive team will fix this immediately. We need to be better at buying and selling. We need to avoid paying crazy salaries.

Commercials opportunities for football teams like United will continue to grow. TV deals and sponsorships will likely keep getting bigger for the foreseeable. All we need to do is get better at spending the revenue we generate.

 

[arthurka]

Nothing the club will keep servicing it's billion dollars debt.

 

[LawCharltonBest]

He hasn’t completed the buy in though

 

[Regulus Arcturus Black]

That was one of the major reasons I preferred the Sheikh Jassim bid

”Bid”

It couldn’t even outbid Sir Jim, let alone the absolute bollocks about clearing the debt and building a new stadium.
Empty promises, all smoke & mirrors.

At least Michael Knighton did some keepy uppies.

 

[The Urban Goose]

That was one of the major reasons I preferred the Sheikh Jassim bid

I preferred my bid of:

1. Wiping the debt
2. Redeveloping Old Trafford;
3. Proper playing staff revolution in the summer with 12 out and 12 in.
4. razing Hulme and Moss Side to the ground and building a world class training centre, free fan car park with trams to OT, training spectator stand for season ticket holders, open youth sessions for local children etc.
5. Buying Man City and turning them into our feeder club.
5. Putting the Glazers into public stocks with a supply of free rotten tomatoes;
7. Paying the council to ban the colour blue from every shop window in Manchester.

It was as realistic as Jassim's but because I'm British and didn't put the word "Sheikh" as my title I was dismissed as a fantasist. Racists.

 

[DanH]

Did he ever formally request the SEC filing be corrected? Or was that just more rubbish?

 

[ForeverRed1]

Nothing - it all remains exactly the same

That was one of the major reasons I preferred the Sheikh Jassim bid

And yes there are major questions about how a new stadium will be financed but seems Sir Jim is already working on it so he must have a viable plan

I’m so so glad we’re not owned by Qatar. Imagine United turning into a city/psg and soon what Newcastle will become.

great to be a traditional, authentic club with a soul still

 

[Tiber]

Very little. Joel and Avram continue on their merry way, but take some time to throw a party to celebrate killing off fan and media pressure for at least a few years

 

[Herman Toothrot]

Did he ever formally request the SEC filing be corrected? Or was that just more rubbish?

It was probably rubbish, or the people making that claim would probably have been disbarred. I think the counter claim was the last of their PR contract with journalist-for-hire Kaveh Solhekol.

 

[Grande]

I preferred my bid of:

1. Wiping the debt
2. Redeveloping Old Trafford;
3. Proper playing staff revolution in the summer with 12 out and 12 in.
4. razing Hulme and Moss Side to the ground and building a world class training centre, free fan car park with trams to OT, training spectator stand for season ticket holders, open youth sessions for local children etc.
5. Buying Man City and turning them into our feeder club.
5. Putting the Glazers into public stocks with a supply of free rotten tomatoes;
7. Paying the council to ban the colour blue from every shop window in Manchester.

It was as realistic as Jassim's but because I'm British and didn't put the word "Sheikh" as my title I was dismissed as a fantasist. Racists.

I should rightly say ‘Fantasist’ in your tagline though. And Jassim’s.

 

[The Boy]

Didn't he say Ineos would take on the debt in his initial bid? Would that still happen if he gains over 50% of the shares?

 

[Someone]

Debt is manageable now, but i'm curious to see how are we going to fund the redevelopment of OT or build a new stadium without adding more debt, which won't be manageable then.

 

[Rood]

I’m so so glad we’re not owned by Qatar. Imagine United turning into a city/psg and soon what Newcastle will become.

great to be a traditional, authentic club with a soul still

Not sure how a £1bn of debt and American vulture capital owners makes us a traditional club with a soul but if it helps you sleep at night then keep dreaming

 

[Rood]

”Bid”

It couldn’t even outbid Sir Jim, let alone the absolute bollocks about clearing the debt and building a new stadium.
Empty promises, all smoke & mirrors.

At least Michael Knighton did some keepy uppies.

Can't be arsed to go over old ground since it's done and dusted but the whole fake bid thing is total bollocks as far as I'm concerned

The Qataris only wanted the whole club and the Glazers didn't want that unfortunately

Anyway I'm cool with how Sir Jim is operating so far - still major questions about the debt levels and how a new stadium will be financed but hopefully he has a plan

 

[Ole's screen]

Can't be arsed to go over old ground since it's done and dusted but the whole fake bid thing is total bollocks as far as I'm concerned

The Qataris only wanted the whole club and the Glazers didn't want that unfortunately

Anyway I'm cool with how Sir Jim is operating so far - still major questions about the debt levels and how a new stadium will be financed but hopefully he has a plan

Pretty sure if they overpaid the Glazers would have sold.

 

[Partridge]

Maybe he plans to rebuild old Trafford whilst removing the gas from underneath and selling it to finance the rebuild.

 

[tomaldinho1]

Some on here still crying over the fake Jason bid it seems.

 

[Red00012]

Nothing - it all remains exactly the same

That was one of the major reasons I preferred the Sheikh Jassim bid

And yes there are major questions about how a new stadium will be financed but seems Sir Jim is already working on it so he must have a viable plan

That bid was as genuine as that Thomas Zilliacus bid was

 

[Reiver]

Probably a stupid idea this but is it possible the Glazers, in gratitude for being granted the loan, agreed with the bank to just never pay back the debt? I'm sure it wouldn't be written down anywhere. Even by standards then, the deal seemed a bit dodgy. And it's win-win: Glazers get to milk dividends from United, the bank gets interest on the loan year after year.

 

[Rood]

That bid was as genuine as that Thomas Zilliacus bid was

Obviously that's not true

But funnily enough Zilliacus is still around and bidding for Inter Milan apparently
https://www.manchestereveningnews.c...ews/wanted-buy-manchester-united-now-28627483

 

[Pexbo]

Probably a stupid idea this but is it possible the Glazers, in gratitude for being granted the loan, agreed with the bank to just never pay back the debt? I'm sure it wouldn't be written down anywhere. Even by standards then, the deal seemed a bit dodgy. And it's win-win: Glazers get to milk dividends from United, the bank gets interest on the loan year after year.

What a stupid idea. Do you think banks often deal in “not written down anywhere” deals?

 

[NWRed]

great to be a traditional, authentic club with a soul still

We're a host for a parasite that we can't shake.

Also I find the sniping about the Qatari bid from people who wouldn't believe the Glazers if they said rain makes things wet but accept on faith their PR claims that the Qataris didn't provide proof of funds to be both amusing and revealing.

The debt is going nowhere, the Ratcliffe bid has given the Glazers the breathing room they need to refinance the debt, however given current interest rates and economic situation it is going to cost the club significantly more to refinance, probably getting up towards the PIK loan costs. Those costs mean we will find it much harder to compete with City, Newcastle, PSG and the rest. We're already in trouble with FFP and PSR because of misjudgements like Anthony and fixing that whilst servicing the Glazers debt seems like a stretch.

 

[Wilt]

Doubt the Glazers debt has much to do with Sir Jim’s 25% holding ….suppose how the Glazers handle their own debt is up to them.

 

[IrishRedDevil]

Act like it doesn’t exist. Keep on trucking.

 

[Skills]

Doubt the Glazers debt has much to do with Sir Jim’s 25% holding ….suppose how the Glazers handle their own debt is up to them.

It's not the glazers debt. It's the clubs debt

 

[Marcelinho87]

Didn't he say Ineos would take on the debt in his initial bid? Would that still happen if he gains over 50% of the shares?

No he never said that, he said any NEW debt would be put onto INEOS.

 

[DRJosh]

Every point about this topic is hypothetical. None of us know the actual truth or the probable implications to United’s debt. It could go either way.

 

[golden_blunder]

Nothing - it all remains exactly the same

That was one of the major reasons I preferred the Sheikh Jassim bid

And yes there are major questions about how a new stadium will be financed but seems Sir Jim is already working on it so he must have a viable plan

The Sheikhs bid seems to have been a bit of a Michael Knighton minus attempt with the getting on the pitch to do keepy ups

 

[RedRocket9908]

That bid was as genuine as that Thomas Zilliacus bid was

How do you know which bids were genuine and which wernt? I thought only those involved in the process would know that.