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Record Turnover Still Not Enough For United

United announced pre-tax profits of 48.2 million pounds. In itself this does sound great but when you take the mitigating factors into account it's clear we have reasons to worry.

Turnover was up from 80.4M in 2008 to 91.3M in 2009 which is a 9 per cent increase and highlights the success the Glazers had in squeezing even more money out of the club's earning potential. However, even this mammoth revenue was not enough to keep us in the black, with all the interest payments: for the aforementioned profit we needed the money from the sale of Ronaldo.

A simple calculation will tell you that if we report profits of 48.2m thanks to the sale of a player for 80m then without the sale of that player we would have generated a loss of almost 32m. Which slightly undermines Sir Alex's insistence that the debt does not impact upon transfer funds - or, if he's telling the truth then spending in the transfer market would mean United living well outside their means.

I'm no economist but there is genuine concern about the debt and it's clear the Glazers are worried as well: the club has confirmed that moves are being made to raise 500m in bonds.

"Manchester United today announced that it will be seeking to raise approximately 500m aggregate principal amount from an offering of senior secured notes due 2017.

"The notes, whose proceeds will be used to refinance existing debt secured against the club, will be issued by MU Finance Plc."

This will not be used to clear up the so-called payment-in-kind loans which amount to 175m and attract an interest rate of 14.25 percent which is staggering. This is the Glazer's personal debt (the 500m will be used to pay off the club debts) but it is affecting the club of course and they have to find a solution to refinance that as well, because at this rate this debt will only snowball.

In this climate, we have plenty of reasons to regret that some acquisitions (most notably Nani and Dimitar Berbatov) did not live up to the expectations. Had they performed as expected, the situation would be a lot less graver. But right now we have a squad in need of serious strengthening but we do not seem to have the financial means. Fergie must be very wise, careful and clever during the summer - we simply cannot afford any bad signing. Let's hope we can afford some good ones, anyway...

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The Journalist

Writer: Zae Mail feedback, articles or suggestions

Date:Monday January 11 2010

Time: 2:15PM

Your Comments

Oh, and I could add Anderson and Hargreaves as well: if the former showed some consistency (at least he has time on his side) and the latter could actually play some games, we would be sorted in central midfield, as opposed to needing reinforcements there as well.
thats what happens when players get OTT money & you have OTT transfer fees mean while people struggle to survive!!!!!!!!
The way the Glazers have shafted you is really quite shocking. Have you noticed that the new bond issue will allow them to take up to 50% of your entire revenue for personal use? They've also mortgaged every single asset that you have with the exception of the training ground at Carrington - that includes the rights to the trademarked name "Manchester United". The game against AC Milan is quite possibly the defining moment in the history of your club - win and the bond sale succeeds. Lose and you suddenly become an unacceptable financial risk.
No, that's what happens when businessmen are allowed to buy great clubs despite not actually having enough money for it and then they are allowed to heap their debts on the club.
Wouldn't be quite as melodramatic, fifthcolumnblue. It's not as the 2005 Champions League disaster severely impacted on our capacity to attract sponsors: the record-breaking AIG deal was done months after that. Manchester United as a global brand will be a huge pulling power, regardless of one result - you see, that's why they mortgaged the name. The question is, when will another buyer come around (which is surely what the Glazers want, that's the only way they can net profits on this whole business) and how can we survive until then.
The Glazers have **** you [Edited by TheFear]
You've been shafted. Your not even a cash cow let alone an ongoing concern on the pitch.
United fans should quickly realize that they are in the same position as us Liverpool fans; the only difference is that we have to retards running the club compared to United. How the FA allows such debits to be place on our clubs is beyond me and I find that they are the real greedy basterds, The FA is selling the soul of the game to make a quick buck or two. I am sure many other fans are having a laugh at our expense but if these douchebags are able to make a quick buck of our backs other fans should realize that there clubs could be next. Us fans should unite and force the FA to step in and change the law and rules so teams won't be striped of all their history and soul so a business men can make 200 million profit at our clubs expenses.
The Glazer's have really done a number on you, and they have managed to do it in such a short space of time too. Regardless of whether the club manages to get this bond of 500m or not, the future does not bode well, does it? ---- If you get it, they will expect massive returns on their investment in a few years, which could cause even problems down the road, and this whole half of some monies being used by the Glazer's themselves is incredible. ---- If you don't get it, the writing on the wall will obscure the wall itself, and could make what is happening at Pompey seem like losing a few quid down the back of the sofa.
The FA have done nothing because they are greedy cretins. When our takeover went through I was bemused lets borrow 2/3 of the cash and take a debt free business and lump it with debt. Did the government or the FA do anything. Hell no. I mean if Shinawatra can pass the fit and proper persons test whilst being similar in nature to Hitler, Stalin and Mao does it surprise anyone that FA just sat back and let all this happen. Its not just football its lots of businesses it started in the 80s when Thatcher sold BT, British Gas etc and now its moved onto entertainment. Sad day for England, Britain when the majority of it companies football or non football are foreign owned. We won't go under overnight if at all but if anyone knows a good Hitman send me his details got a few yanks he can sort out for me.
They are not on there own with the wages they pay, but I think a schoolboy could balance the books better than this. Your keeping in the red by asset stripping.
Delete red insert black.
The whole gamble wouldn't have looked so bad if the economic climate hadn't turned sour, so the FA probably thought, like everyone else, that the likes of the Glaers +Hicks & Gillette couldn't fail. Unfortunately, just like all the collapsed buy-to-let schemes, it backfired big-time, and for that the Government and greedy bankers are to blame.
Seems your bond issue is being regarded with a certain ammount of scepticism in the city:
united need to pay 46m a year interest on their debts OMG how much do u think u will get for rooney this summer???
NRD - Thaksin killed more than 6,000,000 people? You're just *****ed that your club has been (and is being) screwed over.
Global brand eh ZAE. i remember when you were a football team. Keep your fingers crossed that rooney doesnt have a dip in form as he,s your only sellable asset. And as sure as eggs are eggs you are going to have to sell him . You really are screwed ..

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