Glazers in dire financial straits - Owe $1.6 BILLION for ManU

[___ Eats It]

No wonder they won't give USF a break on concessions...

http://sportsillustrated.cnn.com/2008/writers/gavin_hamilton/05/06/glazer.united/index.html

Beneath veneer of success, Man. United struggles with finances

As Manchester United prepare to face Chelsea in the first all-English Champions League final in Moscow on May 21, it might appear that everything is fine and dandy with the club's owners, the Glazer family.

Scratch beneath the surface, though, and a very different story emerges. This week it was revealed that the club suffered a £58 million loss last year and now owe a total of £764 million to their various creditors. The accounts for the year ending in June 2007 also disclosed that United owe £56 million in outstanding transfer fee installments to other clubs.

NOTE:  Some math for you - 764M Pounds = 1.49 BILLION DOLLARS

Most worrying for the Glazers is the news that they still owe £152 million to hedge funds at a rate of interest of 14.25 percent. (Another Note:  Interest on just this 296.5 million dollar portion is over 42 MILLION a year). With a recession threatening to engulf the world's financial markets, the Glazers cannot find anyone willing to take on the debt at a more reasonable interest rate. The hedge fund loans were the most controversial element of the financial package used by the Glazers to fund their takeover of United. This "leveraged" buyout loaded liabilities onto a club which had previously been debt-free. Now the Glazers are struggling to re-finance.

The Champions League final will thus be a battle between the free-spending oligarch in Chelsea's Roman Abramovich and the credit-crunched Glazer. While the English media speculate that the Russian billionaire will use a slice of his £12 billion fortune on a world-record bid for Lionel Messi, United fans must contend with the news that the Glazers only paid off £42 million of the £81 million in interest due on their debts last year. The outstanding interest payments, accrued to the hedge funds, have been rolled over, to be repaid in 2016 -- or whenever the Glazers can re-schedule their debts.

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Wow.  Those amish-bearded mofos are in debt up to their beady little eyes!

[Guest BasketBull.]

First, I learned about plastic bottles. Now this!

My weekend is just going to be ruined!

Where do I mail my one tear for him?

[Brad]

I sense a forthcoming sales tax referendumb.

[Jihme]

i wonder if they are going to try to jack up the price for our rent in the renegotiation?  could their troubles be the initial fire that gets the OCS going?  probably not but its a nice thought

[USFCollin]

First of all... Glory, Glory Man United!!!

Ok, it's not like everyone on earth didn't see this coming.  They overpaid for the club, and spent too much on players early (partially because they had to as part of the agreement to purchase the team, not because they're interested in anything but money).  The revenue streams they anticipated haven't come to fruition because the fans worldwide have been resolute in supporting the players, but denying ownership money at every opportunity by buying black market jerseys, canceling fan club memberships, getting rid of One United credit cards, etc.  Plus the luxury suite market in Manchester isn't quite as lucrative as in London, so they're having a tougher time filling the boxes for the price they'd like.

However they were smart enough to leave the football to the football people, so the club on the pitch has been quite strong.  With a win tomorrow over lowly Wigan they clinch the title, and if they can beat Chelsea in Moscow in two weeks, they get the European title and the precious double.  That would generate more than enough revenue to pay for transfers for the upcoming season and beyond, if they weren't so laden with debt.  14.25% will catch up to anyone pretty fast.  Between this, the disaster of Tom Hicks' purchase of Liverpool, and the boardroom tragedy that happened at Leeds United (google it, too long to get into here), I think the the FA might step in and start approving club sales to make sure they're in the "best interests of the game" the way American sports do. 

Selling the Bucs might be a good option for them at this point, but I don't think they do it for less than $1 billion.  It gets them out of hock for now, but kills their biggest cash cow. 

[Guest JulmisteForPrez]

Did someone say "GLAZER"??

>

[___ Eats It]

Did someone say "GLAZER"??

Can you redo that picture with a bank officer holding Daddy Glazer over his knee?

[Guest JulmisteForPrez]

Did someone say "GLAZER"??

Can you redo that picture with a bank officer holding Malcom Glazer over his knee?

Let me see what I can do...

[Matt]

all this over soccer...what a waste. 

[Guest pascobull]

First of all... Glory, Glory Man United!!!

Ok, it's not like everyone on earth didn't see this coming.  They overpaid for the club, and spent too much on players early (partially because they had to as part of the agreement to purchase the team, not because they're interested in anything but money).  The revenue streams they anticipated haven't come to fruition because the fans worldwide have been resolute in supporting the players, but denying ownership money at every opportunity by buying black market jerseys, canceling fan club memberships, getting rid of One United credit cards, etc.  Plus the luxury suite market in Manchester isn't quite as lucrative as in London, so they're having a tougher time filling the boxes for the price they'd like.

However they were smart enough to leave the football to the football people, so the club on the pitch has been quite strong.  With a win tomorrow over lowly Wigan they clinch the title, and if they can beat Chelsea in Moscow in two weeks, they get the European title and the precious double.  That would generate more than enough revenue to pay for transfers for the upcoming season and beyond, if they weren't so laden with debt.  14.25% will catch up to anyone pretty fast.  Between this, the disaster of Tom Hicks' purchase of Liverpool, and the boardroom tragedy that happened at Leeds United (google it, too long to get into here), I think the the FA might step in and start approving club sales to make sure they're in the "best interests of the game" the way American sports do. 

Selling the Bucs might be a good option for them at this point, but I don't think they do it for less than $1 billion.  It gets them out of hock for now, but kills their biggest cash cow. 

Well I was going to say something like this but since I'm an Arsenal fan it would have dripped with glee. Hating the Glazers is so easy.