[Guest]

From Red Football Shareholder Limited


Makes for very grim reading.

Another huge loss.

£44.78 million loss before a tax adjustment of £1.8 million giving a bottom line figure deficit of £42.7 million.
Total losses since the takeover now amount to £236.7 million.


Debt up

From £666,731,000 to £699,174,000


Interest charge for the year

£68.84 million of which £45.3 million was paid,the balance of £23 million is the rolled up interest in the hedge fund loan.



The net cash outflow on players in the year was 26.45 million.This has been used to pay down the amounts owed to other clubs on players purchased prior to 30th June 2007.The recorded cost of players bought in the year to June 2006 was only 14.3 million.The purchase of Berbatov and others since June 2008 is recorded as a note only at an amount of 34.42 million


Turnover was up from 212 million to 256 million.


Profit on disposal of players 21.8 million


Manchester International Freight Terminal was purchased for 11.6 million.



Summary

No sign of profitability imminent. No sign of any provision to re-pay the debts. Difficult to pick anything positive.

Where in the hell is this going to end?

It is impossible to see how there is ever going to be an end in sight to clear the debt or even to start paying off the debt without a billionaire takeover but there is no chance of that happening as it does them no favours with the debt being stacked against the club rather than them.

Its easy to put to one side what is happening to the club behind the success on the field but the debt is there and real and barring a takeover is surely going to swallow us all up.

LUHG​

 

[WATPOAE]

We're having a party.....

 

[PeeJay]

The thing is that, as long as the interest doesn't spiral out
of control, our long term future is unlikely to be compromised.

The Glazers, having bought the club with borrowed money, have
already profited and, therefore, are likely to request a relatively
small amount of money for the club (naturally the club would still
have debts attached) if they were to leave.

 

[Richie]

I'm fairly confident if the Glazers decide to sell up there will be plenty of good buyers hopefully.

 

[RedForceRising]

Well... the fact that they could not even pay off last year's interests indicate that things are starting to spiral out of control.

They should be looking to recitify it now and not when they are already in the spiral, heading down Lehmann street...


We had this conversation last year already and David Gill came out guns blazing, saying "we are comfortable with the situation".... well I'm not. Not at all.

Glazers borrowed money against their personal collateral to buy the club, then transferred the cdebt to the club.

Bow would be a pretty good time for them to fork out some cash and pay off a chunk of that loan on the interests alone are going to kill us.

they already couldn't pay last season's debt, rolled it over to this season and this season will owe even more.

All is not well and i suspect the Glazers are not generating as much as they thought they could.

What if we ever fail to qualify for the Champions League in the next few seasons?

Through some reason or the other, it could happen and then what?

Glazors...get your act together!

 

[Guest]

"United and the Glazer family are not commenting on the latest accounts."

Not fooking surprised. :fyou:

 

[Titface]

very very bleak reading.I wonder if these United fans see this and stick their heads back into the sand

Cut him up from head to toe.......

Love United
Hate Glazer​

 

[Richie]

I'm not one of those that begs for rich owners to come in and spends millions, but if some rich Arab came in for United I'd bite his hands off. This debt the Glazers have put us under is seriously dodgy, and it could really esculate into a big problem.

GLAZERS OUT

 

[Guest]

very very bleak reading.I wonder if these United fans see this and stick their heads back into the sand

Cut him up from head to toe.......

Love United
Hate Glazer​

 

[kingstreet]

At the moment things are fine. Interest rates have dropped and interest payments are lower as a result. You won't see that in the accounts for another twelve months.

The debt repayments start in 2013, with a repayment of £75m due in June.

Bigger chunks are due in 2014, 2015 and 2016.

Then the PIK or "deferred interest" debt is due for repayment in 2017 if they can't pay it off earlier.

 

[Jazz 16]

At the moment things are fine. Interest rates have dropped and interest payments are lower as a result. You won't see that in the accounts for another twelve months.

The debt repayments start in 2013, with a repayment of £75m due in June.

Bigger chunks are due in 2014, 2015 and 2016.

Then the PIK or "deferred interest" debt is due for repayment in 2017 if they can't pay it off earlier.

Hello again Kingstreet. Good to see ya back here :thumbsup:

Your post fills me with some confidence after reading the opening post....
What do you make of the whole thing? Think we could be in some trouble a few years down the line?

 

[versa]

Eh?

Ferguson defends Glazers as club debt mounts

SIR Alex Ferguson has defended the Glazer family after the latest financial statement from Manchester United's parent company revealed debts of almost £650 million.

Accounts to June 2008, which were released on Thursday, revealed turnover at the club has risen an incredible 22 per cent to £256.2 million, underpinning a 7.5 per cent increase in profits to £80.4 million. However, Red Football – the umbrella for United and its various offshoots – confirmed a loss of £44.8 million, taking their overall debt to an eye-watering £649.4 million.

Old Trafford supporters opposed to the Glazers have seized on the figures as evidence of a club in crisis. However, Ferguson has never had any complaints about the Americans, who have backed him in the transfer market and have stayed out of the spotlight. And, while he accepts debt was a major factor in the Glazer buyout almost four years ago, the United manager does not feel anything is likely to change as a result of this week's announcement.

"Their support has never changed," said Ferguson. "I do not know what these figures tell you. There has always been debt since Malcolm Glazer took over the club. Most buyouts are like that. But there is no change as far as I am concerned."

For all the criticism their financial structure has attracted, the Glazer family have never given any indication that they are concerned at the amount of debt hanging over United. The Premier League club still returns vast profits on its business dealings, with wages still well under 50 per cent of turnover.

Ferguson, of course, is more concerned about on-field matters and this afternoon takes his title-chasing side up to Sunderland....

Ferguson defends Glazers as club debt mounts - Scotsman.com Sport

 

[futbol]

Jan 1, 2017...Manchester United will cease to exist

Opinions ? :bye2: :wacko:

Des Kelly: The hidden horror of Glazers' United | Mail Online

When Manchester United slapped AIG on their shirts you might have thought they were merely the sponsors. It appears they were secretly acting as the club’s business advisers as well.
What is happening at Old Trafford? The so-called ‘richest club in the world’ club has been revelling in the most successful period of its entire 131-year history and yet it is still posting an annual pre-tax LOSS of £44.8million.
How? Everyone knew the Glazer family’s buy-out of United with an unprecedented pile of borrowed money was a disgraceful and reckless gamble, but stark reality of the numbers being bandied about are almost beyond comprehension.
The club’s marketing clout and the success of the team under Sir Alex Ferguson generate a whopping annual turnover of £256m. But that windfall is being swallowed by the need to service interest on loans totalling £699m — a debt that is rising every year.
The credit bunch: (from left) Avi, Bryan and Joel, Malcolm Glazer's sons and United directors
‘I don’t know what these figures tell you,’ said Ferguson yesterday. Run, perhaps? Admittedly, the accounts are horribly obtuse; deliberately so, no doubt. It’s a tangle of holding companies, parent companies, ‘secured’ borrowing, ‘debt streams’ and ‘payment in kind’ loans that would require the services of a professional expert to unravel, the kind of professional expert who helped lead us all to the brink of global financial disaster in the first place.
If you like calculus then they may be bedtime reading. But here is the scenario for you in a nutshell.
The Glazers are basically using their American Express card to pay off the £699m shopping bill they ran up on their Visa card. And next year, they’ll shove it all on Mastercard.
More from Des Kelly... Des Kelly: Just a spoonful of Shearer helps the medicine go down 03/04/09 Des Kelly: Put the dummy back in, Wayne 27/03/09 DES KELLY: For Middlesbrough's sake it's time to go, Gareth Southgate 20/03/09 The great England rip-off: 45 shirts in 43 years 16/03/09 Des Kelly: Why UEFA must move the Champions League final from Stab City 13/03/09 Des Kelly: It's time to tackle the real thugs and put them before a proper jury 06/03/09 Des Kelly: This is just no way to represent our country on the continent 27/02/09 Des Kelly: Smart money says Hughes has problems at City 20/02/09 VIEW FULL ARCHIVE In the meantime, they are turning up at the casino and hoping the cards continue to be kind so they can cover the interest payments with their winnings.
What could possibly go wrong? Football is cyclical. Although the wheel turns much more slowly at the top than in years past, there will inevitably be a period when United are less successful. Ferguson mentions retirement more and more these days and other clubs will surely seize the initiative when that moment finally comes.
And then what? United are a bad season or two away from doing a Lehman Brothers, or a Northern Rock. The club is a sub-prime horror story, where hidden commitments, myriad loans and debts are complacently excused and numbers are crunched until they are unrecognisable.
These accounts don’t even cover the period when the credit crisis started claiming real victims, including the failed conglomerate AIG. The figures appear to show the Glazers aren’t paying off their massive debt and it’s not even clear if they’re covering all the interest.
More worryingly, the ledger seems to suggest huge repayments are due, starting in four years’ time, with bills landing on the doormat of between £75m-£150m every 12 months, followed by a massive £600m final demand in eight years.
(Note for diary: ‘January 1, 2017 — United go bust’.)
What does this mean in the short term? It means season ticket prices will probably go up in the midst of a recession. It could mean the likes of Cristiano Ronaldo are sold, as it’s hard to turn down £75m when there is a black hole in the books.
We can only guess at the implications. The Glazers decided to remain undercover in Florida and say nothing about these figures, the ignorant cowards. Supporters deserve better than that.
But to help explain the situation to the worldwide fan base their debt empire is built upon, here is a helpful Q&A with one of the family’s trusted advisers:
Q. Where is Malcolm Glazer? He is never seen in public. Is he even alive?
A. We believe he is alive because his face still appears on packets of Quaker Oats. Malcolm Glazer does venture out in public but only when disguised as John McCririck, and to date nobody has dared to approach him due to concerns over hygiene.
Q. Do the Glazer family actually understand United’s history or the English game?
A. Yes, of course they do. To use the football vernacular, this is a family that knows how to step up to the plate, adjust the groin cup of caution, swing the bat of success in the fourth down and dunk the hoop of victory — even if they then pull the hamstring of recklessness and fall face down on the pitch of stupidity with the snot of greed dribbling out of their nose. Yeah, these guys live and breathe football, from their base in Tampa.
Q. How confident are you that the Glazer family have a real grip on these nightmare numbers?
A. On a scale of one to 10, I’d say they’re at eleventeen.

 

[Guest]

Q. Where is Malcolm Glazer? He is never seen in public. Is he even alive?
A. We believe he is alive because his face still appears on packets of Quaker Oats. Malcolm Glazer does venture out in public but only when disguised as John McCririck, and to date nobody has dared to approach him due to concerns over hygiene. :rofl: :rofl: :first:
Q. Do the Glazer family actually understand United’s history or the English game?
A. Yes, of course they do. To use the football vernacular, this is a family that knows how to step up to the plate, adjust the groin cup of caution, swing the bat of success in the fourth down and dunk the hoop of victory — even if they then pull the hamstring of recklessness and fall face down on the pitch of stupidity with the snot of greed dribbling out of their nose. Yeah, these guys live and breathe football, from their base in Tampa. :rofl: :first: :rofl:
Q. How confident are you that the Glazer family have a real grip on these nightmare numbers?
A. On a scale of one to 10, I’d say they’re at eleventeen.:rofl: :first: :rofl:

:first:

 

[kingstreet]

Blyme!

Even Mr Vorderman is starting to get things right!

More worryingly, the ledger seems to suggest huge repayments are due, starting in four years’ time, with bills landing on the doormat of between £75m-£150m every 12 months, followed by a massive £600m final demand in eight years.

I wonder if the journos, who've previously paid no attention to this other than to parrot the OT line about "the debt being manageable" are turning a new leaf in these days of financial prudence and trying to expose what's really happening in the game?

If they are, it's about bloody time someone joined David Conn in the honesty stakes...

 

[Dazza]

I really hate seeing these reports. Reading the facts send a shiver down my spine...

 

[tonnas]

we are in serious trouble, if if we have 4 yrs of saving i think that from 20-13 to 2016 the debt will be no problem but the 600m in 2017...bankrupt unless we sell the likes of ronaldo for 75m+