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£1Billion Buyout? That Makes No Sense

£1Billion Buyout? That Makes No Sense

OK, I presume you all heard by now that according to the News of the World, a group of billionaires have prepared a plan to buy Manchester United for £1BILLION. The tabloid reports that the consortium, based in Bangkok, consist of six mega-rich Far East businessmen who are ready to put money on the table to buy out the Glazers.

That would mean the disappearance of the crippling and worrying debt and would increase our potency in the transfer market. Any fan's dream, surely? Well, the reality looks somewhat different to me.

First: we do not know whether the Glazers are prepared to sell. They would make some neat profit on their initial investment though and as they're struggling to refinance their PIK (Payment In Kind) debts they might be ready to listen to such a tempting offer.

So let's assume they would sell. The bigger question is that why would anyone want to buy the club right now? Because let's face it: you can't squeeze much more cash out of United at the moment, with an insane TV deal, a record sponsorship deal and very high ticket prices. We are struggling to sell out the stadium for Carling Cup and some Champions League games and there's a problem with the sale of corporate tickets as well, thanks to the economic crisis.

I'm no expert at economics but those who are predicted that the TV money will decrease and we really can't charge more for tickets. So any new investors coming in must face the fact that they are unlikely to make profits on their investment in the foreseeable future as the level of investment required is massive. Only if the businessmen in question are ardent United fans with no interest in making even more money this takeover has a realistic chance of going through. And very few businessmen are like that...



Click here to join in the debate on the club forum.

Writer:Zae
Date:Sunday December 13 2009
Time: 8:10PM

Comments

0
bragging rights could be a reason, how many owners can say they own one of the top 10 teams in the world. Stranger things have happened, i mean what money could be made at City?
One United 23
13/12/2009 20:44:00
0
Some of the investors are hardcore Man Utd fans. Maybe they don't see it as much as an investment, but more as a hobby. A bit like Abramovich at Chelsea, who is hardly running a sound business there. But maybe with Asian owners, the market over there will increase significantly.
jnandersen
14/12/2009 03:35:00
0
im waiting for the day some saudi prince invests in Manchester United
khoder
14/12/2009 04:32:00
0
@ khoder I'm not. The businessmen may see United as a marketing tool a cash cow if you like. Linking them to other businesses they are involved in. However as its tripe from the Sunday Special Murdoch Propaganda aka NOTW I simply don't believe it. Nobody actually knows the state of our club except the Glazers they can predict, speculate but there are NO REAL HARD FACTS out there.
NotoriousRedDevil
14/12/2009 10:18:00
0
Unlikely that you will ever get Saudi investment at your club. Although you have quite a bit of support throughout the muslim world, I have been told by several muslim friends that the fact your club features the devil on it's crest and are nicknamed "the red devils" would put off some of the more hard-line religious elements in Saudi. Probably wouldn't matter so much in the rather more liberal Emirates, but Saudi sensibilities have to take in some rather more extreme views. I always hear you bleating on about how you wouldn't want a "sugar daddy" like us anyway, so what's changed?
fifthcolumnblue
14/12/2009 11:41:00
0
NRD: the Glazers treat United as a cash cow, in all honesty - I'll give them that they haven't interfered with Fergie's work but mostly because they are focused on making as much money as possible.
Zae
14/12/2009 12:02:00
0
fifthcolumnblue: we want to get rid of the debt. If a "sugar daddy" clears that it's great, there would be no need to pump more money into the club if he allowed all the profits to be invested into players.
Zae
14/12/2009 12:05:00
0
fifthcolumnblue - to suggest saudi investment would be unlikely due to having the devil on the crest - is so ridiculously stupid its untrue. Business is business and theyre a set of ruthless ********s who will invest in anything that will either A) Make them famous and therefore wealthier or B) Make a profit.
HuddersfieldYiddo
14/12/2009 22:46:00
0
I'm just repeating what I've heard from some very devout Muslim acquaintances of mine HY. They are adamant that there is too much religious "fervour" in certain sections of Saudi society to allow the open parading of an image of the devil, and that anyone who was associated with such an image might face a certain level of resistance. Better let someone from one of the Emirates buy up tthe rags, they worship mammon over there, not Allah.
fifthcolumnblue
15/12/2009 00:13:00
0
LOL @ not being bought because of the Devil on our shirt. Priceless showed it to all my muslim friends at work had a good laugh and joke over that. Almost as ridiculous as saying we're not from Manchester if thats the case Arsenal aint North London!!!
NotoriousRedDevil
15/12/2009 13:23:00
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