man utd

[pompeypete]

I see utd are putting shares on the singapore stock market.

I don't really understand.........

Is this good news........for the club

or the owners ???
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[treble99]

this is the way i understand it.

The Glazers bought the club just before the financial shit hit the world fan and as such they bought the club with a huge percentage of borrowings.
These borrowings were then moved around by the robbing Peter and paying Paul method of doing business.
Wherever they saw an opportunity to borrow the money cheaper they did so.
This sounds like good business for the club until you take one MASSIVE thing into account and that is the fees and dividends the Glazers are taking out of the club for themselves.
This is significantly more than Manchester United make each season.
On a good season United can expect to win the league,get a long way in the champions league and the FA Cup and the Carling cup.
Playing in front of mostly capacity crowds and some great sponsorship deals means that United can expect to make between £80/£90 million pounds a year net.
As the Glazers take £120million pounds a year out for all their hard work and financial risk(sic) it means United go further in the financial shit about £40m a year.
That is where the Ronaldo £80million went.
They would have you believe that the money is available but it is not.What is available is an overdraft facility for £80million.
the original cash has gone.

so that moves us forward.
The next step for the Glazers was to keep borrowings moving around.
You borrow a bit more to pay off the old and take a bit for yourself.
It is as close to a Ponzi scheme as i have ever seen.

they were sweating a bit about 3 years ago when they realised the borrowings were from an American hedge fund who were struggling themselves.
The cash could be recalled by the hedge fund at 3 months notice and they would have been deep in it as the Glazers don't put in.They only take out.
That's when they came up with the best bit of financial genius i have seen.
They were looking for mugs and realised they were on their own doorstep or at least in their own fanclub.
Look around Old Trafford on matchday and all you see is people trying to sell spare tickets at half price.
Apart from Blackpool(the trophy presentation game) there wasn't one hot ticket last season and that includes Liverpool,Chelsea,Manchester City etc.everybody is skint
United suddenly realised the only ones with cash were from the far east and they have a huge fan base in that part of the world.
You see lots of the mugs every game paying £259 plus VAT for a defrosted burger and chips in The Red Cafe.
They give them a programme and a shit seat in East Upper plus a lanyard as a souvenir.They love it
So they took a £500million 5 year bond issue to the far east and stuck it up every one of the "fans" who thought they were helping their beloved United.
It is a 5 year deal and is secured on the team,the ground and the training ground.(Don't forget the Glazers don't put in.they only take out)
The fans get 4% interest pa on the bond and believe they are helping the club.
The Glazers don't pay anywhere interest near what they pay the bond so there is more for them.
They have taken out the 3 month risk of the Hedge Fund borrowings being recalled.((With the bond you cannot under any circumstances have your money back before 5 years)

There is only one mystery and that is that the Glazers had a final £200million paid off last year by a mystery benefactor.
Rumour was it was Middle East money giving them first refusal on buying United if the Glazers wanted to sell.

So now we move onto where we are now and what might happen in the future and there is a lot of possibilities.
Firstly the 5 year bond is up in 18 months and the Glazers have to repay £500million.Where do they get it from?
Remember they don't put in only take out.
One option is to offer another 5 year deal which may or may not sell as the worlds money market is changing.
If they do offer it again the obvious place is to offer it back to the Far East.
To get ready for this bManchester United have organised the pre season tour for 2012/13(amazing as this seasons pre season wasn't fully sorted out 4 weeks before they were due to go)
Guess where they are going 2012/13-Yep you got it.The Far East.
I bet every bond holder gets a special letter from David Gill inviting them to a VIP training session.
It will be for bond holders only and they will all ger a commemorative lanyard and a signing session with the players.
They will all be asked by a specially picked "team" of Manchester United representatives how they enjoyed being a bond holder and a thank you for helping their beloved United and call it a wild guess but i would speculate them being asked if they wanted to pre sign to roll the bond money over.
If they do it's another 5 years of the Glazers at at least £120million a year

Plan B for the Glazers is to sell a minority stake in the club for £600million.
Where is the best stock exchange to do this.Yes the Far East.
They are4 not selling at the moment.
They are just testing the market to see what professional stock advisers recommend the shares are worth ie what the club is worth.
This is an expensive operation but don't worry.It is the club and not the Glazers who pay the fees.
At the moment the figure being suggested is that the club might be valued at significantly more that £2billion.
If this is the case the stock floatation would raise £600million.
What would the Glazers do with the money?
Woulod they pay off the bond holders and have no debt or would they keep the cash for themselves.
You decide.I know where my bet is goung.
iI believe the ideal scenario for the Glazers is that they sell a minority share for £600million and keep it.
Then they roll the bond and that gives them another v5 years at helping themselves to probably another £120million for 5 years thus getting a further £600million and then they try to sell to a Middle Eastern family in 2018.That's if they still have oil.
The worst xase is that they don't get a green light light for the floatation and the bond is not taken up in 18 months.
They would have a great idea if the worst case might happen so even then they have time to sell to a Middle Eastern family now.

Hope that didn't bore you guys too much