Man U for sale!

[dervaig]

$1.5B US to buy the team, drowning in debt, it is to be expected.
Let's hope they get at least $1.0B US when they sell.

BTW, it would have been real helpful if they had made it to
Greece, as both Milan and Liverpool each got in excess of $80M US
for 90 minutes of work.

.............................................................................................

http://news.bbc.co.uk/2/hi/business/6691553.stm

Glazers deny Man Utd sale story 
 
Malcolm Glazer put his son Joel (right) in charge of his investment
Malcolm Glazer has no intention of selling Manchester United, according to a spokesman for his family.
"There is not a grain of truth to this story - the family is committed to the long-term ownership of the club."

The Daily Mirror reported that the American billionaire was ready to sell United after profits fell short of his expectations.

Mr Glazer spent £790m buying the club in 2005, and has put his son Joel in charge of the investment.

Malcolm Glazer is currently recovering from his second stroke, but his spokesman says that his health has no bearing on the ownership of Manchester United.

The debt taken on to finance the purchase of Manchester United has already been refinanced once to reduce the interest payments and it is rumoured that the club is planning a second refinancing.

Manchester United reported profits for the 12 months to the end of June 2006 of £49.7m.

The interest payments on the debt taken out to buy the club are currently £62m a year.
 

[JDB]

BTW, it would have been real helpful if they had made it to
Greece, as both Milan and Liverpool each got in excess of $80M US
for 90 minutes of work.

This is not true.

Clubs in the knockout phase of the CL usually get between 15 - 25 M total for the season.

You are probaly referring to the estimated "value" of a finals appearance to the clubs as in This Article.

See the quote below.

"It is also a money spinner for the clubs that do well. AC Milan will have picked up €21.8 million through its winning run, and Liverpool €17.7 million.

The real financial win for the clubs may be from the second order effects of winning the tournament. A survey conducted for MasterCard estimated that whichever side won on Wednesday night would boost its value by €100 million thanks to additional sponsorship revenue, TV deals, increased player values and higher ticket sales. "

This is very different from "receiving" $80 M. In fact the value would be different for every club. For e.g United would not benefit from increased ticket sales because they are already sold out. Milan, not so much from increased player values since many of their players are already old or may be on short contracts.

The situation at United is not ideal.

The Glazers came in and tried to get something great for nothing.

If they have to pay a premium over income now it is only because they did not invest it up front. All the while their equity grows.

As long as they don't start mortgaging assets, cutting player budgets or selling players to cover the shortfall the situation will be manageable.

Hopelfully they understand the competitiveness of European football and that there is no draft system to save you. If you do not spend money on players you will be left behind.

[Storeboy]

Time to pay the piper, Glazer!  Sell Tampa Bay and keep Man U.  That will never happen!

[D.H.W]

not my man utd 

[dervaig]

JDB, I don't rate Forbes very highly, especially when it comes
to a sport they know nothing about.

I've cut and paste the 'windfall' article from the '06 final, and
you will see how much Barca and Arsenal received. Apply 5% for
inflation, and you will see how I got my number.

http://www.uefa.com/uefa/keytopics/kind%3D16384/newsid%3D422242.html?cid=sentarticles&att=http://uefa.com/uefa/keytopics/kind=16384/newsid=422242.html

As for United and the Glazers. Of all the Prem owners, Chelsea, Liverpool, soon to be
Arsenal, soon to be Newcastle (forget Villa), the Glazers have the most debt, and the shallowest
pockets.
What does that mean?
For United to compete, they have to produce from their academy, as they have
in the past, but it's not happening.
Why do I say that?
They will not spend $30MM US to buy a striker, a la Chelsea, and very soon
Liverpool.

..............................................................................................

Finalists' financial windfall
Tuesday, 16 May 2006
 E-MAIL PRINT
UEFA Champions League finalists FC Barcelona and Arsenal FC stand to gain considerable financial benefit from their successful runs to this season's showpiece.
Guaranteed revenue
If they win the final at the Stade de France tomorrow night, Arsenal are guaranteed revenue - from performance and starting bonuses, points bonuses, television market share and winning the title - of around €37.3m. If they finish as runners-up, the Londoners will pick up approximately €34.7m. Success for Barcelona means approximately €31.5m in total revenue. If the Spanish side lose, their income for the season, in provisional figures, will amount to close to €28.9m.
Final participation
Included in the total for participating in the final, the UEFA Champions League winners will collect approximately €6.4m, with the runners-up receiving approximately €3.8m. All figures are to be considered as provisional. Final accounts for this season's competition will be ready in mid-June

[Filho]

Manchester United reported profits for the 12 months to the end of June 2006 of £49.7m.

The interest payments on the debt taken out to buy the club are currently £62m a year.

Not sure how any companies can report profits for a date that is more than a month away. It's probably just an estimate but numbers won't be official until well after June. Also, if the net income (or net profit) of the club is 49.7m, then that already includes paying the 62m in interest expense. So who cares..the company is then super profitable and the media is playing on people's lack of understanding of finance. However, if that 49.7m is just operating profit, then they're probably making a bit of a loss, depnding on their tax situation and any other extraordinary charges/income. The trick is to use the word 'profit' by itself..it actually means nothing. You have to diffrentiate between operating profit and net profit...tricky bastards.

In any case, who cares....right now, just an unsubstantiated rumor. If true, it will come out in the end and even so, there will be no shortage of buyers

[JDB]

JDB, I don't rate Forbes very highly, especially when it comes
to a sport they know nothing about.

I've cut and paste the 'windfall' article from the '06 final, and
you will see how much Barca and Arsenal received. Apply 5% for
inflation, and you will see how I got my number.

Youu are either misinterpreting the UEFA report or deliberately mis-representing the figures. Also Forbes is merely reporting a Mastercard report so your personal opinion of them is not relevant.

That UEFA article did not show that Liverpool and Milan will get 80M for "90 minutes of work" even if you estimate it. That implies that the money for appearing in the final was around 40 Million each, on top of the rest of money earned during the competition and this is not the case.

That money is accrued over the entire season. So the difference between a semi-finalist and a winning or losing finalist is much less than 80M. In fact is is at most around 10M.

You can see that in your own quote from the article.

If they finish as runners-up, the Londoners will pick up approximately €34.7m. Success for Barcelona means approximately €31.5m in total revenue. If the Spanish side lose, their income for the season, in provisional figures, will amount to close to €28.9m.
Final participation

HERE is another UEFA article that bears that fact out. I assume that you will trust this more than Forbes.

The teams receive payments in proportion to their progress in European club football's major competition, and various other criteria. UEFA Champions League runners-up Arsenal FC take €35.05m, more than winners FC Barcelona (€31.65m) on account of the greater value of the English television market. Other sides to fare well in financial terms are Olympique Lyonnais (€25.47m), Chelsea FC (€24.94m), AC Milan and FC Bayern Mόnchen (both in excess of €20m