Cosmo
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United play for the double on back of £58m losses last year
http://www.guardian.co.uk/football/2008/may/06/manchesterunited.premierleague
With Manchester United powering to a probable second successive Premier League title and ready for a Champions League final, it appears that life at Old Trafford could hardly be rosier, but the club's accounts, now published in full, detail a significantly bleaker picture of the club's finances under the ownership of the Florida-based Glazer family.
Before the family's 2005 takeover, United prided itself on being the only Premier League club regularly to make a significant profit, to have cash in the bank and, unlike all the others, no debts. After the leveraged takeover, the Glazer family loaded their borrowings on to the club and the position has changed. The accounts for the company that the Glazers use to own United show total borrowings, in the year to June 30 2007, were up to £666m, by far the highest of any English football club, ever. The total owed to all creditors, including the banks, was up to £764m and includes £56m that United owe to other clubs in transfer fee instalments on players Sir Alex Ferguson has signed.
The total interest payable by the club on its borrowings was £81m, although only £42m was actually paid. The rest, which accrued on the millions owed to hedge funds, is allowed to roll up until the whole amount has to be repaid in 2016, or, alternatively, until the Glazers can refinance it. A total of £152m is currently owed to hedge funds, at 14.25% interest a year - £22m from 2007-08. Last year the Glazers tried to refinance but were unable to strike a deal with financial institutions, and a spokesman acknowledged that the credit crunch is making it more difficult now.
David Gill, United's chief executive, announced the headline results back in January, stressing that United's phenomenal money-making power, with 76,000 crowding into Old Trafford and the Premier League's huge TV rights deals, had produced record income of £210m and operating profits of £75m. The full accounts show, however, that even though United made a further £11m profit from buying and selling players, the interest and other accounting provisions pushed United into recording an overall loss of £58m.
The accounts also reveal that by far the highest proportion of income, £92.5m, is still generated on home match days, and although the club has announced more modest ticket price rises for next season than for the previous two, supporters groups continue to protest that they are paying the debts of a takeover they opposed. "It is outrageous that supporters are paying the huge interest on these borrowings, which are worrying for the club's future," said Sean Bones of the Manchester United Supporters Trust. "Our money is pouring out to pay the Glazers, while they have not put a penny into the club."
The spokesman for the Glazer family pointed to the club's success on the field, and in generating income off it, as evidence of the family's competent management. "The family continue to run United as a business," he said. "Their model is to encourage success on the pitch by backing Sir Alex Ferguson, and to grow revenues off it. The interest payments are more than covered by the cash generated."
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Marc
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You love it 
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Cosmo
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I have missed out on posting these the last few times as you've beat me to them - Im guessing you hoped I missed this one though as not the best news 
Aslong as you keep either winning the league or getting to the final of the CL then you'll scrape by - if you get a season or two of not doing that though I can see a bit of trouble heading your way.
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Robbo
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£58m loss
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Cosmo
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Still owe £56m for transfers to other clubs
£81m a year debt repayments and only paying £42m and rolling the rest on
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Robbo
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14.25% interest on the hedge fund loans as well They must be banking on the HF's collapsing
That all really doesn't make for good reading... but as said, provided they kee making the CL and compete in the Prem they'll be fine... can't see them slipping up in that respect BUT I can't see that they can make that much available for transfers either...
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Cosmo
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quote:
Originally posted by Robbo
BUT I can't see that they can make that much available for transfers either...
It depends if they can find someone to give them the loans, as appears they are just stacking transfer costs ontop of everything else. Although I doubt it will be as easy this summer as it was last to do so.
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Robbo
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Aye... they are getting dangerously close to the Peter Ridsdale School of transfer funding if they do that though
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Cosmo
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RyanSxi
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Cosmo
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quote:
Originally posted by RyanSxi
No comments on this Ryan?
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RyanSxi
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quote:
Originally posted by Cosmo
quote:
Originally posted by RyanSxi
No comments on this Ryan?
Not really mate
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Nath
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How man times in the last hour have you wanked over this cosmo? To the nearest hundred.
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RyanSxi
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quote:
Originally posted by Nath
How man times in the last hour have you wanked over this cosmo? To the nearest hundred.
Its things like this that make him able to get out of bed in a morning
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Cosmo
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quote:
Originally posted by Nath
How man times in the last hour have you wanked over this cosmo? To the nearest hundred.
It wont allow me to post so many digits 
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Cosmo
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quote:
Originally posted by RyanSxi
Not really mate
£58m is nothing though right, I mean you can soak up this loss and easily cover it 
And dont worry about spending money this summer, Im sure you can just roll over another huge chunk of the £81m loan repayments
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Nath
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I'm dreading the day Man Utd do an Accrington Stanley
RIP Manchester United FC.
Just think, Liverpool will finish 3rd when that happens
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Cosmo
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quote:
Originally posted by Nath
Just think, Liverpool will finish 3rd when that happens
Nah, you not see the Galatico's Spurs are signing - they'll be well above us, well above us all.
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Nath
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quote:
Originally posted by Cosmo
quote:
Originally posted by Nath
Just think, Liverpool will finish 3rd when that happens
Nah, you not see the Galatico's Spurs are signing - they'll be well above us, well above us all.
Shit yeah Forgot about those sneaky Yids.
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Tom
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Registered: 3rd Apr 02
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Not even paying the interest back @ marc always making light of the 'debt' situation
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Cosmo
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quote:
Originally posted by Tom
@ marc always making light of the 'debt' situation
TBH atleast Marc is aknowledging it, Ryan seems to be sticking his head in the sand and pretending it doesnt exist
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Robbo
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So does Glazer by the sounds of things
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Jules
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Serious question:
Would Cosmo and/or Robbo swap postitions with Man Utd? i.e have their debts but their success?
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Robbo
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Yep
We have £330m debt ourselves (albeit offset by future gate receipts... same way Liverpool are doing their stadium)
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RyanSxi
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quote:
Originally posted by Cosmo
quote:
Originally posted by Tom
@ marc always making light of the 'debt' situation
TBH atleast Marc is aknowledging it, Ryan seems to be sticking his head in the sand and pretending it doesnt exist
Its not as if me looking at the situation and making a reply on a car forum is going to change anything though is it
Man U have alot of debt, I agree
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