Good news- but will this be us a few years down the line???

[Roboklopp]

FOR SALE
EXCLUSIVE: Glazers will listen to offers for United
By Martin Lipton Chief Football Writer 25/05/2007
THE Glazer family are ready to consider bids for Manchester United - potentially throwing the club into off-field turmoil once more.

Less than three years after Malcolm Glazer finally won his controversial takeover battle in a deal that cost £831million, United's future is up in the air again.

Boardroom figures are privately conceding a sale in the short-term is likely after the Glazers realised United was not the cash cow they believed it would be.

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If they sell, there is bound to be a period of uncertainty just as manager Sir Alex Ferguson would be aiming to build on the Premiership triumph.

Financial sources in the City last night confirmed feelers have started going out from Old Trafford because the takeover was proving so costly.

Malcolm Glazer paid £790m, plus legal fees of £41.3m, to win his drawn-out fight for control of the world's biggest club.

But to do so he borrowed a staggering £559m from City institutions. Last year, a refinancing package, organised by merchant bank JP Morgan, only came after the amount owed to hedge funds had grown by another £71m, leaving a total debt of £660m.

JP Morgan's fees for that transaction came to £90m - the cost of three Wayne Rooneys - and the club now faces annual repayments of £62m. That burden is wiping out the bulk of United's profits.

Despite the capacity of Old Trafford increasing to 76,000, escalating player wages and the need to continually invest in the squad - the Glazers promised Ferguson £25m each year plus an extra £25m one-off for a star signing - account for a huge chunk of income.

Fans were outraged by ticket prices for next season going up 14 per cent and the cost of home cup ties rising.

The relationship between the club's management and the Florida-based owners is becoming more and more of an issue and with Glazer seriously ill after a stroke last year and having to put control of the business in the hands of his sons, it seems he is increasingly looking for a way out.

United chief executive David Gill was said to have been in a "really bad mood" before United's FA Cup Final defeat, preoccupied by affairs at the club.

One well-placed City source said: "What we're all hearing is United hasn't turned out to be what the Glazers thought it was. When they paid so much, they were convinced a lot of money was to be made.

"Buying United wasn't about owning a football club, but a business decision and from an investment point of view it's been little short of disastrous."




I suppose the difference is that G&H are funding us a stadium, I dunno. Worries me a bit, but at least it gives us summat to reply to the piss-taking Scum fans for the short term:bird:

[Roboklopp]

FOR SALE
EXCLUSIVE: Glazers will listen to offers for United
By Martin Lipton Chief Football Writer 25/05/2007
THE Glazer family are ready to consider bids for Manchester United - potentially throwing the club into off-field turmoil once more.

Less than three years after Malcolm Glazer finally won his controversial takeover battle in a deal that cost £831million, United's future is up in the air again.

Boardroom figures are privately conceding a sale in the short-term is likely after the Glazers realised United was not the cash cow they believed it would be.

Advertisement
If they sell, there is bound to be a period of uncertainty just as manager Sir Alex Ferguson would be aiming to build on the Premiership triumph.

Financial sources in the City last night confirmed feelers have started going out from Old Trafford because the takeover was proving so costly.

Malcolm Glazer paid £790m, plus legal fees of £41.3m, to win his drawn-out fight for control of the world's biggest club.

But to do so he borrowed a staggering £559m from City institutions. Last year, a refinancing package, organised by merchant bank JP Morgan, only came after the amount owed to hedge funds had grown by another £71m, leaving a total debt of £660m.

JP Morgan's fees for that transaction came to £90m - the cost of three Wayne Rooneys - and the club now faces annual repayments of £62m. That burden is wiping out the bulk of United's profits.

Despite the capacity of Old Trafford increasing to 76,000, escalating player wages and the need to continually invest in the squad - the Glazers promised Ferguson £25m each year plus an extra £25m one-off for a star signing - account for a huge chunk of income.

Fans were outraged by ticket prices for next season going up 14 per cent and the cost of home cup ties rising.

The relationship between the club's management and the Florida-based owners is becoming more and more of an issue and with Glazer seriously ill after a stroke last year and having to put control of the business in the hands of his sons, it seems he is increasingly looking for a way out.

United chief executive David Gill was said to have been in a "really bad mood" before United's FA Cup Final defeat, preoccupied by affairs at the club.

One well-placed City source said: "What we're all hearing is United hasn't turned out to be what the Glazers thought it was. When they paid so much, they were convinced a lot of money was to be made.

"Buying United wasn't about owning a football club, but a business decision and from an investment point of view it's been little short of disastrous."

--

I suppose the difference is that G&H are funding us a stadium, I dunno. Worries me a bit, but at least it gives us summat to reply to the piss-taking Scum fans for the short term:bird:

http://www.mirror.co.uk/sport/footba...name_page.html

[einar]

This could easily happen to us.

[Rich]

United chief executive David Gill was said to have been in a "really bad mood" before United's FA Cup Final defeat, preoccupied by affairs at the club.

Favourite line - "really bad mood" What bollocks.

[Roboklopp]

I am hoping that Moores was particularly careful about that after the Dubai 7 year thingy. Remember, Scum had no say who took them over.

It certainly wouldnt make sense to sell us so quickly given the investiture in the stadium (& hopefully team).

[Roboklopp]

Favourite line - "really bad mood" What bollocks.

I'm sure it was worse after.

[GordonGecko]

Couldn't happen to a nicer club....They deserve all the **** they get and more. I hope they repressess Old Trafford and turn it into a new Tescos. One Scum into another.

[Roboklopp]

How does this fit in with the signing of Hargreaves though? Surely, they'd put a stop to transferrs if this were the case?

[dom9]

The trouble with this is that United have been ahead of the game for a long time in terms of the business side of football. They produced a model that only now the rest of us are following.

If things start to go wrong for them, I can see the fall out spreading to the others, as football becomes less fashionable as an investment vehicle.

I have always maintained that there is no money to be made in football. What income is generated generally gets spent on wages and transfer fees. The higher the income, the higher the wages and fees spent. United were the exception to that rule. They generated enough cash to pay top whack, and pay dividends.

It is possible, that this may be the beginning of a football recession. Obviously this will be a long way off, but when the new wave of foreign owners come to realise that football is not a cash cow, they will be selling up again one by one.

I think we are fortunate as G&H have really bought into the whole ethos, atmosphere and history of our club, and are just as interested in preserving its integrity as making a return on their investment.

[Roboklopp]

The trouble with this is that United have been ahead of the game for a long time in terms of the business side of football. They produced a model that only now the rest of us are following.

If things start to go wrong for them, I can see the fall out spreading to the others, as football becomes less fashionable as an investment vehicle.

I have always maintained that there is no money to be made in football. What income is generated generally gets spent on wages and transfer fees. The higher the income, the higher the wages and fees spent. United were the exception to that rule. They generated enough cash to pay top whack, and pay dividends.

It is possible, that this may be the beginning of a football recession. Obviously this will be a long way off, but when the new wave of foreign owners come to realise that football is not a cash cow, they will be selling up again one by one.

I think we are fortunate as G&H have really bought into the whole ethos, atmosphere and history of our club, and are just as interested in preserving its integrity as making a return on their investment.

Remains to be seen doesnt it? Lipservice is nice, but let's see how they respond to Rafa's rant.

[philred10]

there are too many diffences for us to be drawing parrallels at the moment. for a start as has often been said the glazers loaded manure with the debt whereas hicks and gillett took the debt burden in our takeover. secondly and most importantly hicks and gillett have the cash equivelant to the debt and then some, the glazers dont have the sums to bail out manure. either way the scaremongering is a bit silly as there isstillafear ofebt which is a little antiquated and born out of the leedsand chelsea horror shows.

[SouthAfricaRed]

The problem at Utd is not that the Profitability of the club is failing. On the contrary with the new TV deals it's improving,

The problem is the money the Glazer's owe to the Banks. They are at very High interest rates and have already been ReFinanced. Outstanding Debt is now £660 million. That required repayment at £62 million/year.

They have bet the Future of the Club on continued success. Arsenal is in a similar position. If they dont make the CL, both teams will be in serious Financial trouble.

I'm not sure how G&H have structured their debt repayments, but the important difference is that Liverpool FC as a club is not directly liable for the debt

[Roboklopp]

The problem at Utd is not that the Profitability of the club is failing. On the contrary with the new TV deals it's improving,

The problem is the money the Glazer's owe to the Banks. They are at very High interest rates and have already been ReFinanced. Outstanding Debt is now £660 million. That required repayment at £62 million/year.

They have bet the Future of the Club on continued success. Arsenal is in a similar position. If they dont make the CL, both teams will be in serious Financial trouble.

I'm not sure how G&H have structured their debt repayments, but the important difference is that Liverpool FC as a club is not directly liable for the debt

That is true- & why that article in the Graudian was a load of toss on Tuesday- but it doesn't make a difference to whether they want to sell the cluib surely? I mean if G&H sell the club, will they be passing on the debt as well even though in a different manner to the Gayzers.

[SouthAfricaRed]

That is true- & why that article in the Graudian was a load of toss on Tuesday- but it doesn't make a difference to whether they want to sell the cluib surely? I mean if G&H sell the club, will they be passing on the debt as well even though in a different manner to the Gayzers.

The difference is that Utd needs to find extra money whilst their marketing ability is already close to Maximium, whereas we all know that our marketing has been severely lacking and has a huge scope for improvement. With an expected boost in income from our new stadium and marketing we have a much Greater scope for Improvement, whereas United can only really increase their Ticket prices to increase income.

£62 million is a lot of money to find every year to just keep the banks quiet. That's before other debts are paid. They will surely have to refinance that debt again, increasing the debt even further. And to think Leeds went under with about £70-80 million Total debt

[captainfog]

ha ha ha

Don't think this will happen to us, Hicks et al have said from the start that there are better ways to make money than buy a football club.

I think they realise the potential but also the limitations. Sports clubs are bottomless pits when it comes to investment