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Axeslammer
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21 posters

    Man. Utd. make $110 million loss; $1.5 billion in debt!!!

    fcb
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    Man. Utd. make $110 million loss; $1.5 billion in debt!!! Empty Man. Utd. make $110 million loss; $1.5 billion in debt!!!

    Post by fcb Sat May 10, 2008 9:35 am

    http://sports.yahoo.com/sow/news?slug=ap-manunited-finances&prov=ap&type=lgns

    This was shocking news to me...I knew about the debt (approx. 750 million pounds), but never knew that despite topping Deloitte's rich list with the highest revenue, they actually made a net loss of approx. 25 million pounds last year. That means their annual expenses (presumably due to the interest payments and installments on transfers) were well over 500 million dollars.
    TM
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    Post by TM Sat May 10, 2008 9:38 am

    Most of that debt is down to the Glazers. $1.5 Billion whats that in todays climate, in terms of pounds?
    Tweesus
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    Post by Tweesus Sat May 10, 2008 10:35 am

    @ TM

    kas wrote: the debt (approx. 750 million pounds)

    ok
    L.r.d
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    Post by L.r.d Sat May 10, 2008 10:35 am

    TM wrote:Most of that debt is down to the Glazers. $1.5 Billion whats that in todays climate

    A Ronaldo Whistle
    TM
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    Post by TM Sat May 10, 2008 10:37 am

    Tweedle wrote:@ TM

    kas wrote: the debt (approx. 750 million pounds)

    ok

    Oops.


    Not that bad. After we sign Ronaldo they will only have 710M of debt left ok
    The-Frank-Tavern
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    Post by The-Frank-Tavern Sat May 10, 2008 11:07 am

    Its a huge risk in todays financial market.
    Tweesus
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    Post by Tweesus Sat May 10, 2008 12:19 pm

    Signing Ronaldo or the amount of debt?
    Dick Grayson
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    Post by Dick Grayson Sat May 10, 2008 12:28 pm

    TM wrote:
    Tweedle wrote:@ TM

    kas wrote: the debt (approx. 750 million pounds)

    ok

    Oops.


    Not that bad. After we sign Ronaldo they will only have 710M of debt left ok

    Are ye thinking of calling y'rselves Real Wankers? would suit ye!
    COTR
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    Post by COTR Sat May 10, 2008 1:04 pm

    Glazer accounts reveal Manchester United suffered £60m loss last year as debts reach £760m


    Manchester United may be chasing a League and Champions League double on the pitch but their financial results show the club are sinking deeper into debt and posted a significant loss last year.

    They have incurred increased debt to their creditors and have yet to pay out on some transfer fees for players.


    Accounts released this week by Red Football Joint Venture Ltd, the company set up when American businessman Malcolm Glazer purchased the club three years ago, showed that the Old Trafford club posted a £58.2million loss in the financial year ending June 30, 2007.

    However, that was a substantial improvement on the £135.3m loss the company recorded in the previous year.


    The latest figures suggest that the club is being adversely affected by the global credit crunch.


    Glazer, whose sons are board members and occasionally attend games at Old Trafford, borrowed most of the money needed to buy the club, loading it up with debt.


    The Red Football figures showed that the club still owes £152m to hedge funds, at an annual rate of interest of 14.25 per cent, and that it paid off only £42m of the £81m in interest due on their debts last year. cyclops


    Income from United's run to the Champions League final will boost their income for the current financial year
    However, the figures also revealed that the club had borrowings of £666m in the year to June 30 2007, up from £604m in the previous year.

    That took the total owed to all creditors to £764m, including £56m in transfer fee instalments on players signed by Sir Alex Ferguson
    .


    Recent high-profile signings for the club include Owen Hargreaves from Bayern Munich, Carlos Tevez from West Ham and Nani from Sporting Lisbon.


    The detailed figures contrast sharply with the club's announcement of the headline figures in January, which highlighted the 21 per cent rise in turnover and an operating profit of £75m.


    Just last month, Forbes magazine named Manchester United as the richest in the world for a second straight season, valuing the club at £540m, an increase of 24 per cent on the previous year.


    The holding company was upbeat about Manchester United's prospects for 2007-08, saying a record 64,500 season tickets had been sold before the start of the season and that the club would benefit from an increased share of Champions League TV revenues.
    Kimbo
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    Post by Kimbo Sat May 10, 2008 1:07 pm

    Just imagine, when Fergie retires they don't replace him properly(maybe with Queeroz or Hughes) and they miss out on the top 4 after a team(lets say Newcastle) really kicks on. Man U could go into meltdown if they missed out on the CL. Leeds anyone? Very Happy <Ale>
    COTR
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    Post by COTR Sat May 10, 2008 1:14 pm

    Kimbo wrote:Just imagine, when Fergie retires they don't replace him properly(maybe with Queeroz or Hughes) and they miss out on the top 4 after a team(lets say Newcastle) really kicks on. Man U could go into meltdown if they missed out on the CL. Leeds anyone? Very Happy <Ale>


    Just to use estimated figures

    I think united's current revenue is around 210 million

    Out of this is coming interest of 80 million

    Wages of around 100 million (maybe more)

    As many shiny new 20 million pound players as fergie wants each season

    And the many thousand other costs of running a football club


    The interest payments and servicing the loans do not even appear to be having an impact of the lowering the Glazer's loans as they are only increasing. I don't really know what the fook is happening but it doesn't read too good Wink
    lrdsucksgoats
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    Post by lrdsucksgoats Sat May 10, 2008 4:24 pm

    Since we get a different story every month about what Man U's accounts look like, I wouldn't read a massive amount into this particular story. It ain't like Yahoo/AP are renowned for their accuracy.

    On the other hand, if despite increased TV revenue, and a season where Man U won the league, got to the CL final and the FA cup final, and increasing ticket prices dramatically, the club is still posting a loss, then someone should really buy a rifle and go Glazer hunting.

    Unless they're Roger Hunt, in which case they should be sending letters of gratitude for the good work.
    Lordanger
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    Post by Lordanger Sat May 10, 2008 5:26 pm

    would the banks be able to repossess ronaldo? today would be a good time to do it Smile
    blutgraetsche
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    Post by blutgraetsche Sat May 10, 2008 5:46 pm

    What happened to financial sanity in England? The EPL used to be different from the Serie A and La Liga in this respect, but billionaires taking over clubs, the media hype and pressure seem to have changed this. Not the best timing also, knowing how the credit crunch has affected the economy world wide.

    It's truly mind boggling if you consider the incredibly high revenues the top EPL clubs have.
    Kimbo
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    Post by Kimbo Sat May 10, 2008 5:59 pm

    Jigaboo wrote:Since we get a different story every month about what Man U's accounts look like, I wouldn't read a massive amount into this particular story. It ain't like Yahoo/AP are renowned for their accuracy.

    To be fair every single story i've seen has told us that they have a massive debt.
    The-Frank-Tavern
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    Post by The-Frank-Tavern Sat May 10, 2008 6:00 pm

    exactly kimbo, yeah they have a big turnover but also a huge debt
    fcb
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    Post by fcb Sat May 10, 2008 6:18 pm

    Kimbo, that's true, the debt is well known. But until now I think most of us were under the impression that they are making profits from their on-the-pitch success that is allowing them to handle the interest payments. But making a net loss is bad news.
    Machiavel
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    Post by Machiavel Sat May 10, 2008 6:22 pm

    Manchester United to sell players and stadium to pay off £700m debt

    BURIED under mountains of debt and interest payments, Manchester United’s American owners have decided to cash in their star players and get rid of the club’s debt in an ambitious plan to be debt-free by 21 December 2012.

    While raising the £700m or so required to service the debt + interest payments is no small task, the Glazers are certain that their money-scrimping American ways coupled with naked extortion of the fans will help Manchester United debt-free and hence on the path to being the biggest, richest and most powerful football club ever ™.

    Proposed fundraising activities include:


    * Selling star players - such as Ronaldo, Rooney, Ferdinand, Carrick, Hargreaves, Evra, Nani and Anderson. These players will be replaced from the most promising members of the first-team / youth squad, and it is believed that Manchester United have enough depth in their ranks to survive the loss of such front-line players.

    * Terminating contracts for high-maintenance, low-value OAPs such as Gary Neville, Ryan Giggs, Paul Scholes and Edwin van der Sar. Some reports suggest that the money saved on the combined wages for these players plus the star players sold above will help fund another expansion of Old Trafford to help increase stadium capacity to 100,000, thus pissing on Wembley.

    * Dropkicking deadwood out of the club - yes, we’re talking of Louis Saha and Mikael Silvestre. The transfer fee from selling these players will be used to buy an Arab, a South African, an Egyptian, a Turk, an American, a Mexican, an Australian, a Canadian and even an Indian. This is all part of Manchester United’s push for globalisation and tapping new markets to - yes, you guessed it - squeeze more money out of the club.

    * Pushing Sir Alex Ferguson into retirement (he’s going to win the Champions League this season, after all) and bringing Roy Keane on board. There are rumours that the reserves team might be scrapped and the money to be spent more on the scouting network in an effort to find young talent - as young as 6 years in some cases - to bring to Old Trafford. The money saved on managerial wages is to be used to setup a cheerleader squad whose main aim will be to distract referees, distract opposition players and distract opposition managers (in that order). Fans will be asked to pay for the traveling expenses of the Manchester United Cheerleaders Squad (MUCS).

    * Selling 50% of Old Trafford to Manchester City owner Thaksin Shinawatra after the expansion to 100k in a unique ground-sharing bid. This will net Manchester United £300m plus the rights to the City of Manchester stadium, which they will then develop and sell off to raise another £100m.

    Already United have made deals for Ronaldo, Rooney and Ferdinand, as well as arranged for Tevez’s contract to be terminated at the end of this season in exchange for a £10m payment by an unknown club. Many more players are expected to leave in this summer exodus, and the Glazers hope to make around £300m in transfer fee earnings this summer. Coupled with the potential sale of Old Trafford in 2010 (once the 100k capacity is reached) to net Manchester United another £400m, Manchester United look set to meet their debt targets by 21 December 2012, the date set by Malcolm Glazer.

    Sources close to the Glazers say that if Manchester United are not debt-free by this date, it could mean the end of the world.

    No comments yet on the rumours that Glazers will help the Thailand police to frame and arrest Thaksin Shinawatra in return for getting back their 50% of the stadium - all before 21 December 2012.

    Potential Manchester United starting lineup (08/09)

    Kuszczak, Simpson, Pique, Evans, O’Shea, Fletcher, Park, Gibson, Welbeck, Dong, Campbell

    Do you think that Manchester United can win the Premier League with this squad next season?
    Juligen
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    Post by Juligen Sat May 10, 2008 6:23 pm

    Is this a joke Rai or a real report?
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    Post by Kimbo Sat May 10, 2008 6:24 pm

    I can't believe you're trivializing a £750m debt AND a loss Rai. Laughing Doh
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    Post by Machiavel Sat May 10, 2008 6:25 pm

    Juligen wrote:Is this a joke Rai or a real report?

    Its real, Man United is finished, I will be a Chelsea fan next season Ale
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    Post by Juligen Sat May 10, 2008 6:33 pm

    Mattheus wrote:
    Juligen wrote:Is this a joke Rai or a real report?

    Its real, Man United is finished, I will be a Chelsea fan next season Ale

    NOOOOOO, its Arsenal the team to go Very Happy Very Happy
    L.r.d
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    Post by L.r.d Sat May 10, 2008 6:42 pm

    Mattheus wrote:

    Sources close to the Glazers say that if Manchester United are not debt-free by this date, it could mean the end of the world.


    Laughing

    If this is true then i seriously doubt such huge contracts would be given, and another 30+ mill prepared to be spent in the next few months.
    Referring to the yahoo article


    Last edited by L.r.d on Sat May 10, 2008 6:53 pm; edited 1 time in total
    Machiavel
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    Post by Machiavel Sat May 10, 2008 6:43 pm

    Juligen wrote:
    Mattheus wrote:
    Juligen wrote:Is this a joke Rai or a real report?

    Its real, Man United is finished, I will be a Chelsea fan next season Ale

    NOOOOOO, its Arsenal the team to go Very Happy Very Happy

    No offence but I rather sent to the gallows than cheer on the gunners. I really hope the board don’t sell Carrick.
    COTR
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    Post by COTR Sat May 10, 2008 10:06 pm

    What rai posted was an April fool

    I know because I nearly posted it myself Wink
    Machiavel
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    Post by Machiavel Sat May 10, 2008 10:18 pm

    COTR wrote:What rai posted was an April fool

    I know because I nearly posted it myself Wink

    Why you !! always ruining the fun
    Deluded F*ck™
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    Post by Deluded F*ck™ Wed Jun 03, 2009 9:16 pm

    http://www.guardian.co.uk/football/2009/jun/03/english-premier-league-debt

    All the clubs for this past season, Liverpool appear to be hiding something though scratch
    COTR
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    Post by COTR Wed Jun 03, 2009 10:04 pm

    http://www.guardian.co.uk/football/table/2009/jun/03/premier-league-turnover-wages-debt

    All laid out well here


    Chelsea and United's wage bills are astonishing
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    Post by Kimbo Wed Jun 03, 2009 10:09 pm

    Liverpool 80 (est)

    lol! Some fucking estimate.
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    Post by Rosicky Wed Jun 03, 2009 10:10 pm

    Arsenal have the lowest turnover to wage ratio Ale

    Good stuff.

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