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Debtchester Utd

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Player Valuation: £6m
Debtchester Utd Formaly Man Utd

Got to laugh and smile at Utd, there now 715mil in debt a rise of 70 mil. Even tho they sold Ronaldo they got 70mil more debt.
See Rooney checking out in the summer anyone?
 
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It really can't go on can it?

You have 10 or 12 teams all going for European places, they are all trying to get a bigger and bigger squad full of quality. Clubs spend more and more on player transfers, they all spend more and more on player wages. There are only 7 spots of European places ( roughly cups depending) and as we can see with Man Utd you can win all the top competitions and you will still be in unreal debt, it is not economically viable.

Something has to change.
 
What I don't understand, is how come United don't get all the trouble Pompey get when they have extreme debt?
 
Man Utd are a massive brand and they make money from everywhere, but this insane debt cannot go on for much longer, or it will get out of control.
 
Portsmouth can't afford to pay there players at the moment. Man Utd can but for how long.
 

EFC Si said:
What I don't understand, is how come United don't get all the trouble Pompey get when they have extreme debt?
Click to expand...

United have the revenues to support the debt. Pompey don't.

The bond issue is of massive importance. It's not really adding debt, just restructuring the debt so that they can pay off the highest interest debt first.
 
If they can support it, how it gone up 70 mil?
Thats with the sale of Ronaldo. Only takes 1 bad season an Utd will be buggered an lets face it, there due one.
 
I saw the debt "only" rose 17 million?

Either way...

They have two forms of debt, the bank debt which as gone down, and the private equity debt (PIK) which has gone up.

The covenants of their bank debt dictate that they cannot payoff the PIK debt until the entire bank debt is paid. So that PIK debt is just sitting there, collecting interest without any payments being made. That is why the debt is going up.

The PIK has the higher interest rate of the two. The bond will allow United to pay off the bank debt, and therefore start repaying the high-interest PIK debt.
 
will be interesting to see if they give rooney his £40k a week payrise that hes supposedly after or cash in on him from real madrid or barca like its being touted about?
 


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