Same, it's only going to get worse unless by some miracle our youth all magically turn into world beaters. For me I think Fergie will leave sooner rather than later because he doesn't need this at his age he owes us nothing and I have noticed how tired he is looking in interviews lately. As we can see he did lie when he said in the summer that the funds were there because there it is in black and white that they weren't but he did it to keep the media off the clubs back, well it was a good run but now we are going to watch Man City dominate the league in coming years and that will ******* hurt thanks Glazers.
Manchester United to raise £500m Manchester United has said it plans to raise £500m through a bond issue in order to refinance its debts. The announcement came as the club announced pre-tax profits of £48.2m for the year to 30 June 2009, compared with a loss of £21.4m a year ago. The profit includes the £80m fee the club received from Real Madrid for Cristiano Ronaldo last summer. US businessman Malcolm Glazer bought the club for £790m in 2005, borrowing heavily to do so. Group turnover rose to £278.5m from £256.2m the previous year. There has been much speculation in recent weeks that United was considering a bond issue to address its debts. Although no total debt figure was disclosed in the results announcement, it has previously been reported as £699m. The Old Trafford club paid £41.9m in interest on a £509.5m loan. Without the sale of Ronaldo, the reigning English Premier League champions would have reported a loss of £31.8m. BBC News - Manchester United to raise £500m
How long until Rooney is sold now then? 50 million to Real Madrid will tempt the Yanks wont it ********.
Sad to say, this has been brewing for a while. The trading statement is the usual pile of crap that you get with any financial report, and puts the best spin on a situtation we can all see through. I agree with Tom6187, I can't see Fergie hanging around for long now. And we joked about Mike Phelan taking over......!
I have always said that as hard as it is, nobody can guarantee players like Rooney will retire here. Why? for reasons like you mentioned. I still think that even if Ronaldo had wanted to stay for the rest of his career at United, at some point he would have been sold for financial reasons
Even though I work in Finance, I have no idea what this bond issue is going to do... are we going to be able to clear our debts in one foul swoop or are we just brushing them under the carpet until 2017... after seeing we would have had a huge loss without selling Ronaldo for 80 million, for the 1st time I'm getting very worried indeed!! i genuinely believe Fergie when he said the Ronaldo money was still there to spend! how is he going to justify not spending after these results...
I think it means the debt will still be there but at a much lower rate of interest. ******* 30 million pound loss without the sale of Ronaldo and after a year of record income. Makes depressing reading and more players to be sold me thinks.
THE BOND ISSUE EXPLAINED IN DETAIL AND IN SIMPLE TERM...LOOK GOOD TBH AND ENCOURAGING Manchester United bond sale: Do fans need to worry? | This is Money So Manchester United are going bust? No, Manchester United makes more money than any football club in the world - £80.7m a year at the last count. But it has estimated debts of £700m. I'm no economist, but that seems wrong? These two seemingly incompatible facts have been the cause of confusion for football fans since some of the biggest clubs, including English giants Manchester United and Liverpool, were introduced to leveraged buyouts. This is where new investors would borrow money to buy a controlling stake in a club, then make the clubs liable for the debts. So it became normal for highly lucrative clubs to suddenly have to service massive debts. In Manchester United's case, the takeover of the club by Malcolm Glazer in 2005 has left the clubs nursing debts of around £699m, resulting in annual interest of about £69m. What are these bonds? In this context, a bond is a means for investors to effectively lend the club money and then receive interest on that sum each year until the bond matures, at which point they would receive their original sum back. The Manchester United bonds announced today will expire in 2017, an interest rate will be set at the end of this week. How do they help? The bonds effectively allow the club's owner to swap expensive debts with banks and hedge funds for cheaper debts owed to bondholders. Within the circa £700m debt, Manchester United owes £509.5m to banks while £135m is owed to hedge funds. The debt to hedge funds attracts a particularly punishing 14.24% interest. The club is aiming to raise £500m through the issuing of bonds, so if the interest rates on the bonds is set at, for example, 5%, the club would reduce the overall level of interest it was paying. What if the bonds fail? It is possible that the club will not raise as much money as it hopes, in which case it will be stuck servicing the more expensive bank and hedge fund debt. This will eat into profits and would reduce the cash that is available to spend on new players and could necessitate the sale of current players. Could the club go bust? Only if it could not make repayments to its creditors. The club has already rearranged it's debt once so that some of the most expensive debt was repaid earlier. If the repayments became unsustainable the club would seek to restructure them again – essentially asking banks to reduce the interest, or else give them longer to pay. There are good reasons for banks to do this. In the whole landscape of corporations, football clubs actually represent pretty good debts for bank. Compared to many businesses, the revenue from a football club is relatively assured. TV rights money, while under pressure, is settled years in advance and with such a loyal customer base clubs can rely on stable season ticket and replica shirt sales.
Can someone please explain to me, in laymans terms, the difference between those profit figures and the clubs operating profit figures? That article said we lost £21.4m last year but, according to the following article, our operating profit was £71.8m... Record profit for United - Manchester United - Football - Sport - Manchester Evening News
According to united in 2008 we made a loss of £21.4 mill However in 2009 we have made a profit of £48.2 mil We have also reduced the bank loans from 08 by 9 million looking at the analysis of the financial accounts. However, the problem being. Have we made that £48.2 profit because of the sale of ronaldo. Or have we generally pulled through and made that profit without ronaldos sale. Which to us the fans remains unconfirmed. My opinion is that we are still making losses due to the interest of the debt but the sale of ronaldo covers it up in the accounts in 09. They are not gonna release a summary of the full accounts so only the club and the glazers are going to know the truth. So still no idea tbh. Fergie says the 80 millions there. so maybe its there and we really have made a profit (which i doubt) But hey ho we aint portsmouth yet. Give or take a few years but Uniteds still here http://dps.twiihosting.net/manutd/doc/content/doc_10_602.pdf
yes but now we wont be paying 60m debts anymore thanks to the bond....now all our debts will be payed and oure new creditors will be the lenders of the bond so the 500m we owe to banks now we owe to the bond lenders. We have to pay THE FULL 500m in 2017...but every yr we will pay a MUCH lower interest of about 4-7%..so take 5% as example...we will pay 25m early interests....and have to sort of save 500m in these 7 yrs and we are finally debt free AT LEAST THAT IS HOW I UNDERSTOOD IT..IF im wrong feel free to tell me
The profit includes the Ronaldo fee, so without it we would of been in loss of ~£30m and that's with winning the League and CC, also success in the CL. So it makes you think how much loss would we report without that success? Yeah it does seem a good plan but we will still have some bank debt left over and will have to save some money each year to prepare for when the bond matures, assuming of course that all the bonds get sold, so- total debt = 700m 500m bonds @ 5% = 25m per year 200m bank loan @ 10% = 20m per year 500m bonds over 7 years = 71.4m per year So we're going have to give out 45m per year in interests and save ~71m per year to service the bonds in 7 years time thats 116m per year and we'll still have 200m debt. That's how I have it, If I'm wrong someone please correct me, please.
Is there a statement from united confirming that? Not that im doubting you cause i strongly agree and dont see how we could switch from a dramatic loss to a dramatic profit in the space of a year. Just like i said, us the fans are still left in the unknown unless they have released a statement. Would be nice to not be so cut out of the situation
only 509m are secured on the club ( last yr we were about 519m) the other 200m are on the glazers nothin to do with utd : http://dps.twiihosting.net/manutd/doc/content/doc_10_602.pdf (this is on our offical website) i dont understand were the 71.4m payment each yr came from? we only have to pay 25m yearly now..or is it how much we should save every year?
3rd paragraph BBC News - Manchester United to raise £500m the 71m isn't a payment just what we would have to save to pay the bonds in 7 years time.
Can someone explain exactly whats goin on? I dont get all this financial talk and lingo. Dont even know what bonds are..
A bond is basically a loan but at a lower interest rate and over a fixed period of time. http://en.wikipedia.org/wiki/Bond_%28finance%29
all this in the same year that united won the premier league, the carling cup, got to the semi final of the fa cup and finalists of the champions league. dread to think what a trophyless season would bring. one problem i see with these bonds is that 'anyone' with the money will be able to buy them. they could end up being bought by hundreds of different people, meaning hundreds of different people would own united. they could be russian mafia, they could be chinese gangsters, they could even be city's owners. and as for fergie saying....."the ronaldo money is available for me to spend" ....what a load of b0llocks that turned out to be.
