Cosmo
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Registered: 29th Mar 01
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Now lets see you Utd fans tell me your club isnt going to be in trouble sometime in the near future...
Football giant Manchester United has confirmed a refinancing package which cuts its annual interest bill by £28m.
A deal next month will see loan charges on sums borrowed from three hedge funds fall from £90m ($164m) a year to £62m.
As part of the restructuring plan, total debt will rise from £580m to £660m, but the club called the move "good housekeeping".
So even before you make a dent on the £660m debt you have you will have to first pay the £62m of interest a year. And considering your profits are only around 10-30mil (depending on success) you arent in the best position!!
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Marc
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Registered: 11th Aug 02
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Did I mention I'm going to Old Trafford next month? 
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Tom
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Registered: 3rd Apr 02
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 £300 a shirt soon
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Cosmo
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quote:
Originally posted by Tom
£300 a shirt soon
I thought they were already, with a 15 shirt min (obviously that'll be one of each kit they have at the moment!)
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Robbo
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Makes sense IMO... £28m saved a year, not bad!
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Cosmo
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quote:
Originally posted by Robbo
Makes sense IMO... £28m saved a year, not bad!
It makes sense, no doubt about that. Just amazed me that the interest is still way more than they could possibly afford to pay in a year, let alone before when it was 90mil!! God knows how they thought they could pull that one off.
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Robbo
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Treu
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Marc
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Debt increased by 80m. Saving 28m a year interest.
I wouldn't say we were in trouble sometime in the near future. Depends how long they will be saving 28m a year for...
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Tom
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Depends if you start winning anything and can start paying more back 
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--Dave--
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hate to see a club in this kind of situation... especially Man Utd
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Marc
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quote:
Originally posted by Tom
Depends if you start winning anything and can start paying more back
Carling Cup
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Cosmo
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quote:
Originally posted by Marc
Debt increased by 80m. Saving 28m a year interest.
I wouldn't say we were in trouble sometime in the near future. Depends how long they will be saving 28m a year for...
you dont get it...
Your saving 28mil on your interest payments only per year. So you still have to pay off 62mil a year in interest before you start paying off the actual loan.
So you will be in trouble very soon (next 5 years) unless you find a way to get more money, and I cant see it happening.
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Nath
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FFS how many more times. Man United are not in trouble. They are the 2nd biggest, if not the biggest, Football Club in the World. Not a chance in hell they'll ever go bust.
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Marc
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Liverpool will be in trouble before us 
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Hammer
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What is your fascination with manchester uniteds finances cosmo? they are in no financial trouble to write home about, they will not go under even if they had debt double the amount they are sitting with just now.
In fact i will bet you they go out and spend at least 10 million on a midfielder this summer.
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MR2Mike
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quote:
Originally posted by Sxi04
What is your fascination with manchester uniteds finances cosmo? they are in no financial trouble to write home about, they will not go under even if they had debt double the amount they are sitting with just now.
In fact i will bet you they go out and spend at least 10 million on a midfielder this summer.
its just an easy way for him to slag off united whilst theres no footy, dont worry about it.
this will now be turned on me btw... as if i started some abuse... await a response
[Edited on 18-07-2006 by Mike_Corsa]
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Marc
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quote:
Originally posted by Sxi04
What is your fascination with manchester uniteds finances cosmo?
Hes a Liverpool fan, he can't help himself
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Nath
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quote:
Originally posted by Sxi04
What is your fascination with manchester uniteds finances cosmo? they are in no financial trouble to write home about, they will not go under even if they had debt double the amount they are sitting with just now.
In fact i will bet you they go out and spend at least 10 million on a midfielder this summer.
Plus at least £15million on a forward, thus spending more than Liverpool.
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mav
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They will always work it out.There is always investors too...Agreed Man U one of the biggest in the world and there is no chance thew will ever go bust or anything like that.
Agree though that is some debt to have and manage.
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Cosmo
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Firstly, Im interested in it because of the huge amount they are in debt. Its a story worth posting, if Im a Liverpool supporter or not. Im not slating Man Utd when I post it, just giving my opinion that its very bad business...as I said about Leeds at the time, have said about Chelsea and will probably say about other clubs in the future.
Right, to answer some of the things posted...
Nath....Just because they are the 2nd (or 1st) largest Club in the world means nothing. They are 660m in debt, which is roughly 2/3rds their value. And they have to pay off a MIN of 62mil a year and this is only the interest, so they wont pay off any of the 660mil. And currently their profits are nowhere near covering the 62mil let alone anything else.
So how exactly does being the largest club save them?
SXi04...Im not saying they dont have money to spend, as they do. The board (luckily for them) have realised they need to spend to win things and therefore bring in more money to pay off the debts. The only problem with thatis that this is the same thing Leeds did and due to not winning anything got in more financial trouble,
Mike + Marc...As said above Im not slating Utd. I would say this about any club who were in this situation (even Liverpool as Im not a fool who would try to hide away the fact my club was in trouble).
Nath again...Liverpool have never overspent themselves during any summer. This is a reason we've never gone for big big name players, but it also means we are in one of the least amount of debts than any club in the Prem yet are still up there. Flip side is that we might of won more over the years, but we could also be where leeds are today.
Mav...Thats the only route out that I can see for them, to sell up in the future to someone who can outright buy them (or float again) and cover their debts. I expect this to happen before any trouble, but saying that the Glaziers could just milk them for what they are worth!
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Sooty
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Cosmo... not again please... c'mon really
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Cosmo
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quote:
Originally posted by Sooty
Cosmo... not again please... c'mon really
I wasnt starting anything, I just posted up about something that is in the press at the moment.
I just cant see how you Utd fans arent worried about the debt your in and the repayments you have to make....unless you just dont understand it?
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Hammer
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It's fine posting about current affairs but its every single thread about transfer speculation regarding man united you have posted they are in debt and cant afford big names, when in fact they can and they will.
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Cosmo
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quote:
Originally posted by Sxi04
It's fine posting about current affairs but its every single thread about transfer speculation regarding man united you have posted they are in debt and cant afford big names, when in fact they can and they will.
No, I said they cant afford top top names, such as Torres. I know they have money to spend (more than most I expect) but it doesnt take away from the fact that they can no longer go out and spend £25-30mil on one player anymore.
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J da Silva
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Fernando Torres's agent has said he's staying at Atletico Madrid, is this because Man U can't afford his demands? or is it because he just doesn't want to play in England?
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