Manchester United debt hits �£716m

[ian1964 10,826]

Debts at the parent company of Manchester United have increased to �£716.5m ($1.17bn), according to its latest accounts.

 

http://news.bbc.co.uk/1/hi/business/8470595.stm

[Dr Preston Burke 0]

Their fans have been singing Malcolm Glazer's Gonna Die at recent games. Things could get very ugly.

[Super_Ally 0]

I don't understand how they are not being hounded by the banks for money when we are, even allowing for the fact that their income is vastly greater than ours is their �£700+ million debt really more manageable than our �£30mil?

[craig 5,199]

They have "payment in kind" loans which are attracting interest at 14.25% and that goes up to 16.25% next year. Given the low interest rates generally I would LOVE a piece of that loan - what a return that is. Incredible.

 

Their interest payments overall were about 60 mill which is more than we make in turnover.

 

S_A, they actually might be getting hounded by the banks. The Glazer's are trying to obtain 500 mill through a bond issue and it is believed that the 500 mill would be used to refinance their existing bank loans.

[Super_Ally 0]

They have "payment in kind" loans which are attracting interest at 14.25% and that goes up to 16.25% next year. Given the low interest rates generally I would LOVE a piece of that loan - what a return that is. Incredible.

 

Their interest payments overall were about 60 mill which is more than we make in turnover.

 

S_A, they actually might be getting hounded by the banks. The Glazer's are trying to obtain 500 mill through a bond issue and it is believed that the 500 mill would be used to refinance their existing bank loans.

 

So it's possible our situation with the bank has been made public whilst their's hasn't.

[calscot 0]

I think one of the differences is that our debt was increasing during a time of decreasing income streams while making and forecasting yearly losses, with the additional threat of continual removal of CL football looming due to Scotland's coefficient dipping dramatically. At the same time SDM's company are in deep doggy doo doo and can no longer guarantee the debts. Rangers just didn't look viable with the business plan they were following and so the bank stepped in.

 

For Man U, they have increasing revenue streams and almost guaranteed CL. I also haven't heard reports of the Glazers' other businesses being in trouble. While their debt is much higher than ours, their ability to service it and reduce it using the club's income probably looks a lot more secure than ours and it is far easier and attractive to sell off as a going concern.

 

When you're awash with revenue and at the top of your business sector, the banks will be a lot more supportive of you.

[Gers4Life 0]

I don't understand how they are not being hounded by the banks for money when we are, even allowing for the fact that their income is vastly greater than ours is their �£700+ million debt really more manageable than our �£30mil?

 

And we thought we were in trouble

[pete 2,511]

I think one of the differences is that our debt was increasing during a time of decreasing income streams while making and forecasting yearly losses, with the additional threat of continual removal of CL football looming due to Scotland's coefficient dipping dramatically. At the same time SDM's company are in deep doggy doo doo and can no longer guarantee the debts. Rangers just didn't look viable with the business plan they were following and so the bank stepped in.

 

For Man U, they have increasing revenue streams and almost guaranteed CL. I also haven't heard reports of the Glazers' other businesses being in trouble. While their debt is much higher than ours, their ability to service it and reduce it using the club's income probably looks a lot more secure than ours and it is far easier and attractive to sell off as a going concern.

 

When you're awash with revenue and at the top of your business sector, the banks will be a lot more supportive of you.

 

I think you are wrong Cal they are in serious trouble and are on the verge of selling old Trafford and their training ground and renting them back from the new owners. That is why the fans are so angry.

[pete 2,511]

By the way, Liverpool and Chelsea are in the same boat as them. Roman Abramovich, is only giving Chelsea intrest free loans and his companies are also in dire straits. If he goes Chelsea will fold like a pack of cards