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Pauly_Boy

Bringing Home The Problem Of Too Much Debt

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The whole Rooney saga appears to have raised an unexpected issue!

We'll never know, but it sounds like on of the big reasons Rooney was thinking of leaving was Man U's massive debt. The news channels have repeated mentioned how much debt the glaziers have left them in and how it's crippling the club. Combine this with the fact that the club made a big loss last year even tho its raw profit was about £100m

Is this bringing home debt issues to ordinary non finance savvy people," if debt is bad for our beloved club, then is it bad for us"

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What's all the fuss about. I don't follow football but from what I saw in the world cup rooney was a very average boring to watch overrated player. As for debt, how did they manage to rack up so much?

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What's all the fuss about. I don't follow football but from what I saw in the world cup rooney was a very average boring to watch overrated player. As for debt, how did they manage to rack up so much?

The new owner loves debt so they MEWed... kind of.

From http://en.wikipedia.org/wiki/Glazer_ownership_of_Manchester_United

However, the majority of the cash used by Glazer to purchase Manchester United came in the form of loans, much of which were secured against the club's assets, incurring interest payments of over £60 million per annum. The remainder came in the form of PIK loans, which were later sold to hedge funds. Manchester United is not liable for the PIKs. The PIKs are held by Red Football Joint Venture Ltd and are secured on that company’s shares in Red Football Ltd (and thus the club). If they are not repaid by 2017, the Glazers will almost certainly lose all their shares in Red Football Ltd (and the club) to hedge funds. The interest on these loans rolls up at 14.25% per annum. Despite this, the Glazers have not paid down any of the PIK loans in the 5 years they have owned the club. In January 2010, the club carried out a successful £500 million bond issue. As of March 2010 the PIKs stand at around £207 million.[1] The club also has a gross debt of £520 million with £45 million in annual interest payments.[2]

Manchester United fans opposed Glazer's takeover of the club, particularly once they realised the level of debt that the club would have to take on after having been debt-free for so many years.

Edited by SomethingHasToGive

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....Rooney has probably been watching the fight with Liverpool's former owners and thought this could happen at his club....if he thinks the lack of new signings lost them the league last year ...it was his bad form in the last few weeks of the season which blew it for one or two points....and Ferguson stuck with him..... :rolleyes:

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Can I float an idea here for anyone who's interested - is Rooney suffering from depression?

Might explain a lot such as his general demeanour, current poor form and why he's suddenly decided to leave united. I can see that the poor world cup, seeing the best players leaving your club and all the intrusions into his private life could well have that effect.

Just a thought.

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....Rooney has probably been watching the fight with Liverpool's former owners and thought this could happen at his club....if he thinks the lack of new signings lost them the league last year ...it was his bad form in the last few weeks of the season which blew it for one or two points....and Ferguson stuck with him..... :rolleyes:

One assumes you are joking?

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. As for debt, how did they manage to rack up so much?

The Glaziers played pass the parcel; with the debt that they had used to buy the club

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The whole Rooney saga appears to have raised an unexpected issue!

We'll never know, but it sounds like on of the big reasons Rooney was thinking of leaving was Man U's massive debt. The news channels have repeated mentioned how much debt the glaziers have left them in and how it's crippling the club. Combine this with the fact that the club made a big loss last year even tho its raw profit was about £100m

Is this bringing home debt issues to ordinary non finance savvy people," if debt is bad for our beloved club, then is it bad for us"

Yep, debt everywhere as far as the eye can see.

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What's all the fuss about. I don't follow football but from what I saw in the world cup rooney was a very average boring to watch overrated player. As for debt, how did they manage to rack up so much?

By paying a bunch of knuckleheads a fortune to kick a ball around a large lawn.

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As for debt, how did they manage to rack up so much?

the majority of the (£800 million) cash used by Glazer to purchase Manchester United came in the form of loans, much of which were secured against the club's assets, incurring interest payments of over £60 million per annum.

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the majority of the (£800 million) cash used by Glazer to purchase Manchester United came in the form of loans, much of which were secured against the club's assets, incurring interest payments of over £60 million per annum.

It's incredible isn't it. The club was bought on the back of putting the club under massive debt. Anyone could have done it. Just needed to con(vince) enough banks and investors to loan the money.

Then they issued loads of bonds to defer repayments they couldn't make, and called it restructuring. So they have just piled up the debt and pushed it all back to a later date. Exactly what they are hoping will happen at the later date the mind boggles. Given each year they are more and more in the red, it just doesn't stack up.

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  • 150 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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