Man Utd v Glazer Rumour

[JPaul]

I think comparing Man U to Leeds is a little below the belt.















Leeds havent got anywhere near that amount of debt

Neither have they anywhere near the assets.

In fact it could be argued that Leeds (amongst others) are trading whilst insolvent. I'd have to check with a bank clerk, but I think that may be illegal.

[Rat Faced]

I'd say the major asset is the ground.

I think Elland Road is one of the few major grounds where the freehold is actually held by the football club (Old Trafford is too).

Elland Road must be worth a bob or 2... probably enough to get them out of trouble, if sold for development, by itself. They arent therefore bankrupt as they have positive equity that could cover the debts.


Old Trafford is now owned by some American guy, however I dont think it will raise £3/4 Billion when sold He'd get a few quid off Dan Gilbert for it mind.. he wants to build a leisure complex around there.

[manker]

I'd say the major asset is the ground.

I think Elland Road is one of the few major grounds where the freehold is actually held by the football club (Old Trafford is too).

Elland Road must be worth a bob or 2... probably enough to get them out of trouble, if sold for development, by itself. They arent therefore bankrupt as they have positive equity that could cover the debts.


Old Trafford is now owned by some American guy, however I dont think it will raise £3/4 Billion when sold He'd get a few quid off Dan Gilbert for it mind.. he wants to build a leisure complex around there.

Leeds' major asset is the ground, not the case with Man Utd. I take it we're talking intangibles too because it would make little sense to neglect reference to that.

You seem to have some major insight to which I am bereft. Why will Glazer sell the ground.

In any case, I'm not sure of your figures. The figure of £3/4 of a billion is overstated in so much as the total value of the shares currently held by Glazer approximates that figure so the club couldn't possibly be in that much debt given he'd already bought and paid for 37% of them.

I am unsure whether you read the rest of this thread but there is some info there which details the debt. You'll notice that a lot, indeed over half of it, isn't secured on Man Utd's assets, rather that of Glazer's other assets.

I'm sure you'll agree that this fact alone distinguishes the situation at Old Trafford from the plight suffered at Elland Road not only slightly but clearly indicates that they are totally different scenarios that no-one in their right mind could even begin to compare. But you knew that


There is little doubt that the club is worse off, financially, now than one month back but the situation is only unpalatable because of that. Not because of impending asset stripping nor because of possible liquidation.

Just as soon as I can see some documents and understand precisely how Glazer expects to profit from this venture, as surely this must be his intention, then I'll be happier. This is the bone of contention right now - not scaremongering stories by rival 'fans'.

[JPaul]

The problem football has is that a large chunk of the "assets" are the players themselves. Rooney is a great example. I am sure the books show him as being valued at around £25,000,000, however that is only if someone is willing to pay it.

A long run of poor form or an injury could change that quick style. Indeed a really bad injury could wipe all value from the books. I am quite sure their insurance premiums reflect this high risk, that would only be fiscally prudent.

Let's not even go into "goodwill", particularly with Man U's current status / plight.

(Note to mangep, je suis joking re what goodwill means, to avoid accusations of roddery)

[manker]

It really is rather interesting that footballers are both employees and tangible fixed assets. Conventionally, the two were always treated as mutually exclusive until quite recently when ... oh alright, it's not that interesting

Since Leeds have been mentioned tho', they, allegedly, tried to capitalise upon this sporting nuance of treating employees as assets when they hatched a plot to break one of their defender's legs in order to claim the insurance money and to get his contract paid off. It is eaiser to insure an asset against damage than it is to insure an employee. This is conjecture on my part in more ways than one but I do believe the rumour to be rooted in fact.

===

Btw, RF, if Man Utd did ever subside to that level where GBH seems to be an option to procure the odd million, Glazer himself would be on the verge of financial ruin. His personal finances are inextricably linked to the club now.

It's not going to happen, eh. The club will be refloated when financial reports indicate that a profitable 6 month period isn't likely - and I mean profitable to the level where his loans can be adequately serviced. Glazer will cut his losses and head back to the USA.

This is, obviously, the plan that the various supporter groups have in mind when urging merchandise boycotts.

Now, I see two possible outcomes:

1) Manchester United attains desirable profit levels which greatly exceed current levels (tho' with less money available to spend on players and wages) Glazer stays.

2) Manchester United don't acheive these gargantuan gains, the financial outlook is bleak for Glazer so he re-floats and leaves.

Both scenarios represent several steps back for United, with Glazer staying their transfer market power is limited and their wage structure won't compete with the elite in Europe anymore. If he leaves then the club will be devalued and bereft of the funds Glazer will strip before his departure. Recovery to present status will take several years.

So, in summary, things are pretty bad but it's not all doom and gloom. My own spirits have been lifted considerably this past week after talking to people that knew more about it that I do. We're still light years ahead of Newcastle and the Scousers. Which is a bonus.

[Barbarossa]

So, in summary, things are pretty bad but it's not all doom and gloom. My own spirits have been lifted considerably this past week after talking to people that knew more about it that I do. We're still light years ahead of Newcastle and the Scousers. Which is a bonus.

... do you mean those very same scousers who still have a chance of winning a trophy this season??

[manker]

Nah, Tranmere

[MCHeshPants420]

So, in summary, things are pretty bad but it's not all doom and gloom. My own spirits have been lifted considerably this past week after talking to people that knew more about it that I do. We're still light years ahead of Newcastle and the Scousers. Which is a bonus.

We're the 11th richest club in the world. Soon to be tenth.

[Illuminati]

So, in summary, things are pretty bad but it's not all doom and gloom. My own spirits have been lifted considerably this past week after talking to people that knew more about it that I do. We're still light years ahead of Newcastle and the Scousers. Which is a bonus.

... do you mean those very same scousers who still have a chance of winning a trophy this season??

[Rat Faced]

You seem to have some major insight to which I am bereft. Why will Glazer sell the ground.

I have no idea whether he will or not, i was takin' teh piss out of Man U fans, hence the smilie.. come on, its not often we get the chance to; let us have our fun.

More seriously though, i hear they are seriously looking at the £30million offer on Rio... If they start selling the players so soon after all this, then the fans may take that as the new trend.