Daggers Posted 19 January 2010 Posted 19 January 2010 Glazers could take £600m out of Manchester United over seven years says the TelegraphThe Glazer family could take out more than £600m from Manchester United’s revenues over the next seven years in dividends, interest payments and fees arising from the club’s bond issue. Analysis of the £500m bond prospectus distributed to investors reveals that in addition to annual interest payments of more than £300m the Glazers can take a guaranteed £160 million in dividends, one-off payments and fees out of the club. The terms of the bond also allow the family to take additional annual eight-figure dividends based on a complex formula relating to the ratio of income to interest. Applied to last year’s figures, which saw net income of £41.6m, the Glazers could have claimed a dividend of almost £21m. The device allows the Glazers to take a dividend equal to 50 per cent of net cash profits, as long as gross profits are more than double the interest paid figure. If, as the Glazers forecast in the prospectus, income continues to grow at Old Trafford, over the seven-year life of the bond the total dividend could reach more than £140m. This comes on top of about £260m in interest payments already paid since the Glazers bought the club in 2005, and a further £23m already taken in fees and personal loans to the six children of Malcolm Glazer who sit on the club board. The Glazers are expected to use the dividends to pay off payment-in-kind loans that stand at £200m but, accruing rolled-up interest at 14.25 per cent annually, are set to grow by £30m this year. The massive cost to United’s bottom line of the Glazer’s heavily-leveraged acquisition confirms the fears of supporters who maintain that the bond issue allows them to take money out of the club and shore up their position. The details are contained in the 320-page prospectus that outlines the “covenants” and “permitted transactions” governing the bond issue. Annual interest on the £500m bond, expected to be about nine per cent, will cost United £45 million a year, or £315 million over the term of the bond. This figure could be increased, however, by potential dividends and fees to United’s parent companies, controlled by the Glazers. As well as an immediate payment of £70m, the Glazers can take a dividend of £25m at any time during the life of the bond. The £25m dividend is described as a “permitted transaction” “... so long as no default or event of default has occurred and is continuing, other restricted payments [dividends] in an aggregate payment not to exceed £25m since the issue date [of the bond]”. The prospectus also reveals that the Glazers can pay to United’s parent companies up to £3m a year in “general corporate expenses”. These include “i) fees and expenses properly incurred in the ordinary course of business to auditors and legal advisers; and ii) payments in respect of services provided by directors, officers or employees of any such parent entity”. These payments are understood to come on top of £6m a year that Glazer-controlled consultancy companies expect to charge United for “administration and management” services over the life of the bond. Supporters opposed to the Glazers are ramping up lobbying efforts. The Manchester United Supporters Trust has held talks with Manchester MP Tony Lloyd, and protests are likely at Tuesday's Carling Cup semi-final first-leg against City at Eastlands. Does nothing to convince me that we don't need a meltdown in the game to rid us of people like this.
Jon the Hat Posted 19 January 2010 Posted 19 January 2010 Does nothing to convince me that we don't need a meltdown in the game to rid us of people like this. Have club owners ever not taken money out of their clubs? Yes interest is fixed and dividends and not, but successful clubs have always paid dividends. You either take your money from the bank or from shareholders. Much as I hate to say it, we need to have a system in place before the crash comes to protect the fans. For example if Pompey go bust, the club's membership in the Premiership could dissappear leaving the fans with no club. Not an acceptable outcome - there needs to be a mechanism whereby the banks and shareholders lose everything, but the club continues. This current concept of punishing the club with points deductions is only punishing the fans who have no control whatsoever.
Head Honcho Posted 19 January 2010 Posted 19 January 2010 Have club owners ever not taken money out of their clubs? Yes interest is fixed and dividends and not, but successful clubs have always paid dividends. You either take your money from the bank or from shareholders. Much as I hate to say it, we need to have a system in place before the crash comes to protect the fans. For example if Pompey go bust, the club's membership in the Premiership could dissappear leaving the fans with no club. Not an acceptable outcome - there needs to be a mechanism whereby the banks and shareholders lose everything, but the club continues. This current concept of punishing the club with points deductions is only punishing the fans who have no control whatsoever. This is a very good idea but the PL would want some extra say in who gets to buy a club under it's administration. I see nothing wrong with this personally but they'll soon be accused by some of wanting too much control. I was listening to a Richard Scudamore interview on the way to work on Sunday and much of what he say's makes sense. He only started to stutter when asked about the new regulations coming into force soon to prevent clubs with huge debt from competing in the Champions League and how is it that clubs like Utd will still be able to represent the PL.
breadandcheese Posted 19 January 2010 Posted 19 January 2010 Am I the only one quite happy with the Glazer takeover? This is one of the most exciting seasons in the premiership for a good few years and I think this is to do with these debt-fuelled takeovers at the highest level. There has been a levelling off of teams at the top with Manchester United and Liverpool unable to make big purchases because of their financial positions. Imagine how much improved Man Utd would be with £150-300 million to spend. There would be no-one to compete with them. It's no coincidence that the likes of Villa and Tottenham are the closest they've ever been to a top 4 finish. Admittedly, the problem with this levelling off is that in theory, Chelsea and Man City with billionaire benefactors should now prosper and command the topspots, which would be shame. With large global TV demand for Premier League football, the money is in the game at the top level and has to go somewhere. It either goes into players' pockets, chairmen's pockets, transfer fees, rebuilding facilities or interest payments to banks. Most stadia at the top level have been rebuilt, so the only other destinations for the increased TV revenue is someone's pocket, be it the players, chairmen, agents or banks. All of these are pretty undesirable, but if the party is outside the game, i.e. a bank, then it levels the game off at the top. Yes, it would be great if the fans' benefitted with cheaper prices but this is not going to happen.
Daggers Posted 19 January 2010 Author Posted 19 January 2010 Have club owners ever not taken money out of their clubs? Yes interest is fixed and dividends and not, but successful clubs have always paid dividends. You either take your money from the bank or from shareholders. I couldn't give a stuff about ManU as an entity, it's what this represents in the round which bothers me...and so the sooner the PL is sealed off and packed away to Europe the happier I'll be. Next step - franchising. Then who cares if Pompey go bust, they'll simply hive off the ownership of the PL slot to MK Portsmouth. On any Saturday, am I a fan or am I a customer? If I'm a fan then I have to bitch about the price of tickets but cheer on my team, no matter how shit. If I'm a customer then I can swallow that my ticket costs so damn much and pays for my club's Directors to have new helicopters...if we had a decent right back and played with flair, and decent goal music. That I hate what this deal for the Glazers represents is that it drags me along that continuum into becoming a customer, to waving my over-sized foam hand and not complaining about where the money's gone. You are correct Jon, but that doesn't make it sit comfortably with me.
Simi Posted 19 January 2010 Posted 19 January 2010 This sort of thing has been coming for ages, but as many people have said, nothing will be done until one of the big boys go bust big time. Sure, Pompey are in trouble but it's unlikely Scudamor£ cares enough about them to step in and actually apply some proper legislation on who can and cannot run a football club. It's because of owners like Glazer and Hicks that teams such as FC United and AFC Liverpool are becoming more and more popular. The fans can see what's coming and have got out while they're not roped in to a LifeTime Season Ticket.
dandannieldanok Posted 19 January 2010 Posted 19 January 2010 Poor Man Utd, feel sorry for them..................................actually on second thoughts, I couldn't give a shit, hope they rot in hell.
whitlock Posted 19 January 2010 Posted 19 January 2010 COuldnt give a flying fook about manure, just like they dont give a toss about us or anyone else!
Head Honcho Posted 19 January 2010 Posted 19 January 2010 This sort of thing has been coming for ages, but as many people have said, nothing will be done until one of the big boys go bust big time. Sure, Pompey are in trouble but it's unlikely Scudamor£ cares enough about them to step in and actually apply some proper legislation on who can and cannot run a football club.It's because of owners like Glazer and Hicks that teams such as FC United and AFC Liverpool are becoming more and more popular. The fans can see what's coming and have got out while they're not roped in to a LifeTime Season Ticket. It's not that he doesn't care. It's ensuring that Pompey's creditors are paid first before giving the money to the owners, and by creditors I'm not talking about the taxman. Pompey were behind on payments to several PL clubs and the PL ensured they were paid. He also stated that they had to settle a few local debts (in Scudamore words the local pie man and the like or words to that effect) before they would release any more money. It's not the job of the PL to pay the players that's the owners job and I think they've been very responsible by holding it back before the owners/players get their hands on it
Thracian Posted 19 January 2010 Posted 19 January 2010 Cesspit of soulless opportunism. If it wasn't for unbridled greed so many chairmen today wouldn't be anywhere near football. EEEEugh!
davieG Posted 19 January 2010 Posted 19 January 2010 Cesspit of soulless opportunism. If it wasn't for unbridled greed so many chairmen today wouldn't be anywhere near football. EEEEugh! Like with a lot of organisations run by people that have no knowledge or affinity with the product, service or entertainment they're supposed to be providing.
Daggers Posted 19 January 2010 Author Posted 19 January 2010 Like with a lot of organisations run by people that have no knowledge or affinity with the product, service or entertainment they're supposed to be providing.
Bellend Sebastian Posted 19 January 2010 Posted 19 January 2010 I've heard the Curly Wurly may be under threat. I've not had one for years, but that's not the point. I MIGHT want one
Webbo Posted 19 January 2010 Posted 19 January 2010 Has anyone ever tasted American chocolate? It tastes like vomit, seriously.
lou Posted 19 January 2010 Posted 19 January 2010 Has anyone ever tasted American chocolate? It tastes like vomit, seriously. Cat-sick chocolate my kids called it!
Bellend Sebastian Posted 19 January 2010 Posted 19 January 2010 We're going a tad off topic here - someone has started a thread in general chat. Summary: If the Glazers made chocolate, we wouldn't eat it
MPH Posted 19 January 2010 Posted 19 January 2010 We're going a tad off topic here - someone has started a thread in general chat.Summary: If the Glazers made chocolate, we wouldn't eat it And if we did, it would probably still belong to them even after we eat it and they'd send someone round to collect it after we have.... finished with it.
Daggers Posted 19 January 2010 Author Posted 19 January 2010 I've heard the Curly Wurly may be under threat.I've not had one for years, but that's not the point. I MIGHT want one I had a Curly Wurly last night. Tonight I am having a Thai red chicken curry.
Spencer Posted 20 January 2010 Posted 20 January 2010 http://news.bbc.co.uk/1/hi/business/8470595.stm How is it that they're not out of business? Yet a club like Portsmouth owe about 10% of this total and are facing a winding-up order! Strange world.
Guest Bilo Posted 22 January 2010 Posted 22 January 2010 I've heard the Curly Wurly may be under threat.I've not had one for years, but that's not the point. I MIGHT want one I'm going to have break this news VERY gently to the lady if true. Has anyone ever tasted American chocolate? It tastes like vomit, seriously. Very true. Hershey's is fucking disgusting. It's the one area in which Belgium rules the world though.
Guest Bilo Posted 22 January 2010 Posted 22 January 2010 http://news.bbc.co.uk/1/hi/business/8470595.stmHow is it that they're not out of business? Yet a club like Portsmouth owe about 10% of this total and are facing a winding-up order! Strange world. It's probably due to Manchester United's perceived ability to stand that loss. The earning potential of the club through European prize money, worldwide TV revenue, sponsorship and global merchandising dwarves Portsmouth's. It does seem wrong but Manure's turnover is so enormous that if they stay at the top of the English and European games, they will keep their heads above water. The day they fail to qualify for the Champions League however, could be the day that the house of cards starts to fall....
Fosse Boy Posted 25 January 2010 Posted 25 January 2010 Novel idea for a protest. Man Ure fans are adopting the colours of the original Newton Heath club. Don't see it having much impact but it's seems a good visual way of raising awareness and uniting fans. Fair play to those involved I reckon.
lildave3 Posted 25 January 2010 Posted 25 January 2010 Novel idea for a protest.Man Ure fans are adopting the colours of the original Newton Heath club. Don't see it having much impact but it's seems a good visual way of raising awareness and uniting fans. Fair play to those involved I reckon. Saw that on Sky Sports News. I like it.
Recommended Posts
Archived
This topic is now archived and is closed to further replies.