United successfully raise £504M through sale of bonds
Manchester United have successfully raised £504 million through the sale of bonds, and will use it to pay off most of what they owe to banks.
What they have done is nothing more than rearranging the deckchairs on a sinking ship.
The debt is still there, it’s just become slightly more manageable in the short term, but when the bonds mature on February 1st 2017 the Glazer’s will owe the £504 Million they’ve gained through bonds, plus annual interest of over £40 million from now until then.
United’s overall debt currently stands at £716.5 million and there are no signs that this will be reduced anytime soon.
That’s why you need to throw your support behind the Green and Gold campaign.
Short URL: http://www.strettyender.com/?p=1241
Loading ...
Man U with huge debts totalling more than £700million, is the answer “The Bond!”? : Man U are BROKE! To put it plainly: the equivalent of 70% of all match day income is going to pay the interest on the debt from the Glazers’ takeover, to go out as dividends to the Glazers (!) and to be spent on “management fees and expenses” to the Glazers, which will total over half a billion pounds at the minimum (at current profit levels) by 2017. So even if the club continues to run an operating profit for the next seven years — which will be dependent on continuing successful performance at the highest level — the club will likely be saddled with the same amount of debt by 2017 and the Glazers will have sucked out half a billion pounds from the club. Even if the club somehow makes a lot more money than expected, half of that will go to the Glazers as well. Oh, and if the club spirals downward and operating profit no longer covers these costs, the bond issue allows the Glazers to sell off assets including Old Trafford to pay down their own debt.
Under Uefa initiative to get clubs to only spend what they earn by 2012 Manchester United 2017 is to late to stop Man being thrown out of the Champions League, and further into debt.
It was all built on the floatation in the first place, you’re just reaching ht eend of the cycle that’s all.
Let’s face it, it won’t be the first time you’ve been relegated and had to rebuild will it?
We could sell all our players over the age of 27 and still finish at least 4th! Relegation my ass!