Manchester United Message Board
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Mick, I'm not interested in starting a pissing contest between who has the most debt, Man U or Liverpool. If that is what your interested in then I'll be off. I like to discuss football, not "my clubs better than your club......"
My point was, while your right Man U can continue to succeed if the finances are managed well, and you get a strong manager post Fergie, there is no guarantee. The debt has to be taken into consideration. Its not just the size of it, although that is an issue, but that so much is not financed via investment grade paper. Your paying well over normal corporate debt rates, so it begs the question is that sustainable?
It leaves 3 options for the owners. One, they can tighten the belt, reduce costs which will mean either reduced transfer budgets, and or (and this is the bigger cost) reduced wages (or maybe a freeze is more likely), in order to put capital aside to pay down the debt.
Two, they can sell up, pay off the debt with the proceeds, and most likely take a tidy profit. Whether the new owners can buy with cash leaving you debt free, or will use the same leverage buy out methods the Glazners used, no one knows.
Or 3, they could continue to go on as now, and hope that the club can maintain enough success to cover the payments to service the debt. But, if you fail to make the CL, or drop out of Europe before the big money making rounds, or merchandise sales drop, or any other unforeseen reason that can reduce turnover, things could get a little hot.
Crikey man! How many more times do we do this one? If the debt cannot be managed then the G's have to sell as it must be obvious to you as well that compromising the quality of the playing staff can only have dire consequences for the value of the club.
The debt is ridiculously high because the club has been bought by ... well something approaching crooks same as your club. The game they are playing is to see how they can stay below the saturation point of how much more the fans can be taken for.