• Manchester United Message Board

  • Mick Mick Mar 23, 2011 18:15 Flag

    Debt and the Glazers

    The Glazers have been around for a long time. They are in the business of making money. They have weathered the recession better than most.

    I think they know a lot more about their business than the ABU's posting on here. It would not be in their interests for United to fail. The Champions League especially is important to them. Selling players for money is only good if the player sold is looking to move (Ronaldo) but selling players like Rooney just for the fee is not good business sense. Berbatov may go because he is reaching the end of his career, however, I wouldn't be surprised if he stayed another year or two.

    Important point. Glazers=savy business men. Abu's= Idiots!

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    • Take it you class those Utd fans with Norwich scarves in with the idiots?
      Savvy businessmen? Have you seen what has happened with their shopping mall investments?
      Hope you are happy with your owners for many more years to come

    • Hi Ian

      Well, given that it's you that's a shame. Orrible Arris

    • Hi pool. I find your concern for United heartwarming.

    • Hi Ian

      I was asking if your "and your debts?" post was aimed at me as I wasn't sure. I assume from your reply that it was.

      As such, you seem unable to seperate someones allegiance to a football team with them having an honest opinion about anything else. It makes no sense when you say "What people like you seem unable to understand" when I haven't passed an opinion on Utd's debts. You seem to want to condemn my opinion because of who I support before you hear it. That makes you a very narrow-minded man/boy. I guess that is my point.

      For the benefit of more open minded Utd fans; despite being a Liverpool fan for over 30 years I have huge respect for Utd as a club and have no wish to see them being dragged under by greedy yanks looking to make a quick buck. I'd always assumed that the well supported green & gold parade meant that many Utd fans felt concerned about the Glazers' motives. Most Utd fans posting here seem to be suggesting that the Glazer's represent sound finances. I hope you're right.

    • No club will over Rooney anywhere near the 250,000 pounds he earns per week so forget about him being sold. Berba maybe sold, he could bring in 10 million at 30 years old. Then Nani and Hernandez would raise a few bob.

      However with so many players retiring and becoming fringe players I don't think it is a time to sell.

    • Hi Levy.
      Taking your points in turn
      The bond is a fixed 7 year structure with a known coupon. Libor rates could and probably will over this period increase a lot to counter inflation. Its always easier to run a business against 'known' criteria, and this is a fairly normal business structure.
      I don't know where the financing came from to pay off the PIK loans. However with them removed and the restrictions of the further debt built into the Bond structure, it looks a lot more stable.
      Why should we care where the PIK money came from?
      I think there was an inherent instability in the old PLC structure for the very reason you identify. It doesn't matter how 'supportive' shareholders are, given the level of investment, they will want a decent return on their money. As they were never certain of the level of dividends under the old structure they increasingly looked at United as a 'growth' stock, one to cash in at a profit. This led to the sale to the Glazers. If the dividend payment was more certain, and here we are talking about at least 6% for the sort of risky investment a football club represents, you can do the sums, as the value increases and new shareholders come on board the 'cost' of the dividend payment would at least equal the Bond coupon. It is extremely unlikely anyone investing the sort of money involved with being a core shareholder in United would contemplate not having some certainty in the level of dividends.
      I don't see anything particularly 'fishy' about any of this, at least not more than any other complex business structure once you start looking closely at it. If you want 'fishy' look at the Virgin structure.
      Until the revolution we are stuck with this sort of thing, Glazers or no Glazers.

    • That is assuming the Glazers want to sell that the Arabs are still interested and if someone does buy you they don't borrow to buy just like the Glazers. That's a lot of assumptions

    • Hi pool. So what's your point ?

    • Hi Ian

      Was that post for me?

      If so it's a bit random isn't it? I was just pointing out that the guy above had got his sums wrong (as had the original article).

      I don't know who "people like me are" but of course I understand that debts can be wiped out. What's your point?

    • and your debts ? Now, I'm sure you're going to tell me your club has no debts . What people like you seem unable to understand is when the Glazers sell the club, I think to the Qatar royal family, all 'debts' will be wiped out. But I know that would please you.

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