In the red - Big style

[blues-clues]

Interesting article in the Times Business Pages today but no mention of it in the sport section.

The Trafford Borough team seem to have considerable problems financing their debts.

They are looking for £600m from a bond sale but that wont cover the PIK debts guaranteed by the Glazers of £140m that have already increased by £40m.

http://business.timesonline.co.uk/tol/b ... 973929.ece

Basically all their operating profits are consumed paying off the interest leaving no excess to reduce the capital balance. It seems they paid £790m for the club and still owe at least £700m five years after taking over. If I was in the position of a bank with all the dodgy debts out there would I really be looking to lend them more money?

They earn about £70m from qualifying for the final stages of the CL. So if for some reason they failed to qualify they would have to reduce their costs or would not be able to meet their interest payments....

[The Man In Blue]

thanks malcolm.

[10.Goater_Legend]

Ohh dear, couldn't happen to a nicer club ;)

[The Man In Blue]

If the club’s financial performance deteriorates below a certain level then the hedge funds have the right to appoint their own directors to the board.

translates as "Fire Sale"

[Vhero]

That Pik debt is a bitch they need to get that sorted I have a feeling those cunts will land on their feet though. Although I really hope they go bust. I mean all that history would mean shit then wouldn't it?

[Wonderwall]

after 5 years they have cleared 90m of debt, that doesnt sound too bad in the circumstances and the fact that they have paid huge amounts for players too.

Is the ladyboy 80m in these figs?

[The Man In Blue]

after 5 years they have cleared 90m of debt, that doesnt sound too bad in the circumstances and the fact that they have paid huge amounts for players too.

Is the ladyboy 80m in these figs?

from what i can understand from the article, they have been paying off some debts whilst others are piling up:

The so-called payment in kind (Pik) notes borrowed from Perry Capital and Citadel, two American hedge funds, initially stood at £138m in 2006, but have since accrued £40m of unpaid interest.

[OliverHardy]

if this was a financial problem of this magnitude relating to most other teams (certainly us) it would be back page news today for sure.

[ronk]

if this was a financial problem of this magnitude relating to most other teams (certainly us) it would be back page news today for sure.

It's not exactly a surprise though. This is common knowledge that they have debts, it was included for background. The news is a bond issue, which belongs in the financial section anyway.

[sandman]

When was the last time they failed to qualify for the champions league?

When was the last home league game that they had 10% of their stadium unsold?

I cant see them struggling financially for too long... Unfortunately!!

[psut1]

after 5 years they have cleared 90m of debt, that doesnt sound too bad in the circumstances and the fact that they have paid huge amounts for players too.

Is the ladyboy 80m in these figs?

they paid 790mil but still owe 780mil

They are looking for £600m from a bond sale but that wont cover the PIK debts guaranteed by the Glazers of £140m that have already increased by £40m.

600 + 140 + 40 = 780
They have not been able to pay the interest on the 140 pik debt and that is what will kill them if they are not carefull as it is at 14% which is 19.6 million per year in interest on the 140, they then have to pay interest on the 600mil if that was at 5% (which is low) thats another 30 mil so they are paying 50mill a year in interest. add wages etc and you have a potential problem

[psut1]

after 5 years they have cleared 90m of debt, that doesnt sound too bad in the circumstances and the fact that they have paid huge amounts for players too.

Is the ladyboy 80m in these figs?

Lady boy is being paid off as 12 million euros per year for 7 years

[Wonderwall]

after 5 years they have cleared 90m of debt, that doesnt sound too bad in the circumstances and the fact that they have paid huge amounts for players too.

Is the ladyboy 80m in these figs?

Lady boy is being paid off as 12 million euros per year for 7 years

I thought the big news about the transfer was the fact it was all one payment?

[Wonderwall]

after 5 years they have cleared 90m of debt, that doesnt sound too bad in the circumstances and the fact that they have paid huge amounts for players too.

Is the ladyboy 80m in these figs?

Lady boy is being paid off as 12 million euros per year for 7 years

I thought the big news about the transfer was the fact it was all one payment?

oh, and thanks for the break down, makes it much easier to understand for numpties like me ;-)

[ronk]

after 5 years they have cleared 90m of debt, that doesnt sound too bad in the circumstances and the fact that they have paid huge amounts for players too.

Is the ladyboy 80m in these figs?

Lady boy is being paid off as 12 million euros per year for 7 years

I thought the big news about the transfer was the fact it was all one payment?

oh, and thanks for the break down, makes it much easier to understand for numpties like me ;-)

Well, I'm still no nearer to understanding the answer to your question.

[jodrellblue]

Oh Dear!

Going out of the FA Cup costs potential £4M in prize and TV money without match day and merchandise income.

http://www.thefa.com/TheFACup/FACompeti ... 82009.aspx

[blues-clues]

Oh Dear!

Going out of the FA Cup costs potential £4M in prize and TV money without match day and merchandise income.

http://www.thefa.com/TheFACup/FACompeti ... 82009.aspx

Interesting link! The winners of the FA Cup Final, the worlds most famous cup competition, get less than the winner of Wimbledon!

[ronk]

Oh Dear!

Going out of the FA Cup costs potential £4M in prize and TV money without match day and merchandise income.

http://www.thefa.com/TheFACup/FACompeti ... 82009.aspx

Interesting link! The winners of the FA Cup Final, the worlds most famous cup competition, get less than the winner of Wimbledon!

How do you figure that? The winner of the Wimbledon singles got £850,000. Winning just the final nets £1.8m and that's before including the prize money for each round (£3.4m from where we start) and the TV income on the way. It also doesn't include any ticket sales.

[bluej]

Oh Dear!

Going out of the FA Cup costs potential £4M in prize and TV money without match day and merchandise income.

http://www.thefa.com/TheFACup/FACompeti ... 82009.aspx

Interesting link! The winners of the FA Cup Final, the worlds most famous cup competition, get less than the winner of Wimbledon!

How do you figure that? The winner of the Wimbledon singles got £850,000. Winning just the final nets £1.8m and that's before including the prize money for each round (£3.4m from where we start) and the TV income on the way. It also doesn't include any ticket sales.

Unless he means each individual player? Even then their wages would make up for that.

[blues-clues]

No. Sorry I fucked up!

I misread the figures on the FA website and only saw the runners up figure, I also didnt realise you get prize money after every round.