by zuricity » Fri Jan 15, 2010 6:04 am
One thing that strikes me in the various debates in the press and on blogs is the way the discussion goes towards the Glazers and the way they leveraged the buy out and effectively gave United a debt and the repayments that are bleeding them dry. It is often said that somebody would have to cough up say 1 billion plus to correct their problems.
Well why can't the glazers get out and accept their losses ? They are the greedy B*stards that wanted to make more money than is realistic from the 'Asset' that is Man United. Ditto Liverpool.
Like in other industries, it is sometimes necessary to have investors take the hit. Nobody welcomes downturns in the economy or recessions but they do happen. Not that what the Glazers did can be blamed on the recession. Rather their stupidity of borrowing money in the US.
I think I read in the Times yesterday in somebody's comment to an article about the financing of Uniteds new Bond issue that
the main reason the Glazers want to force this through is that they will then be pretty much free to take as much money out of the club as they want to (apparently at the moment because of the several loans structures and rules, they can't do that right now. Hence the massive fees their companies are charging United for 'Services rendered' and interest free loans made to members of their family).
There must be several billionaires more than willing to buy into United , or Liverpool but not at the prices that these cowboys want to sell at. It seems to me that the Glazers will sell up today if somebody would be stupid enough to buy. Unfortunately 'STUPID' billionaires are difficult to find, so it looks like eventually they will have to dilute their shares , or let the club eventually go belly up. One thing is for sure, as it currently stands their Finances at United are going to get a lot worse.
Personally, I think the Glazers should be taught a lesson and take the losses and get out. It serves them right for their own stupidity and greed.
Edit:
Just one more point. The merchandising aspect. If the Shirts etc., that are being made by Umbro are being produced in British
factories, it is difficult for the Chinese to sell rip-off copies they aren't manufacturing (since it is well know that they often produce more than is asked by a contractor.So they can sell on the black market themselves) . I notice City also have merchandise made in china and I for one would really welcome seeing items that are manufactured as close to the club as possible. Perhaps the profit margin would be a little less ( does the Sheikh really need to maximise profits on such merchandise ?, I don't think he does, or that he thinks that way either ) or the price might be a little higher , but so what ?
It wouldn't really be that different, it just means people like Cooke have to have one less gin and tonic on their Corporate Lunch extravagances.
Last edited by
zuricity on Fri Jan 15, 2010 9:56 am, edited 1 time in total.
"Well I'll go to the foot of our stairs."