Success Happy

What will happen if the trophy wins dry up at United?

I would apprecaite serious views on the following. If things get financially dire for a top 4 team the ramifications will be felt through out the proffesional game: There is a case to be made for the £666.7m of debt at Manchester United being manageable. Their revenues are strong and growing, so what is the problem? Most companies have debt - right? Perhaps a cautionary caveat may be worth adding. United have been highly successful in recent seasons, particularly last year. But even in such a successful year they didn't manage to service their debt. They paid off only £42 million of the £81 million due in interest payments last season. They have a “£515 million "senior" loan repayable at a rate pegged to the inter-bank rate, and a payment-in-kind facility provided by a consortium of hedge-funds that is effectively an equity stake in the club. (Daily Telegraph). “Interest on this PIK loan, payable at 14.25 per cent, is rolled up and added to the loan each year, so last year's declared figure of £152 million can be expected to grow to about £173 million. As a result the club's total debts of £667 million can be expected to rise. Hmmm…. so they are not making payments on what they owe already and the total debt is set to rise. And all this when they are so successful .. with change in the air and Fergie not getting any younger and the evergreens in the squad now finally starting to fade. What may happen if they have even one lean year? I doubt if the United "customers", as zealous as they are, would be able to make an iota of difference. Pack of cards anyone? If you can't be bothered to read this just ignore it please - thank you

Public Comments

1. they will go sit in the corner and cry crocodile tears :)
2. make sure i am not dreaming and supporting Liverpool and wake up in a Cold Sweat can always be 2mins from Rome???
3. Woah, somebody has a lot of free time Mr :P People talk about Chelsea making huge losses but they don't seem to realise everything you've just pointed out. Apparantly Chelsea are ruining the game with money but we spent £0.5m in the last transfer window, compard to United's £17m :) so...you do the maths. I always say regarding United "the higher you get, the harder you fall".
4. they will all go back to supporting the local london clubs in their area
5. the united "faithfull" prawn sandwich brigade will be off doing something else. your points are so interesting, look at the demise of leeds a once all conquering club that is in the current situation solely down to debt. and dont think it cant happen at united, a few seasons of not winning and they will soon feel it. these things go in cycles, liverpool unbeatable for ever when i was growing up and now can't win anything? at least our debt is only tied to roman! i dont know if that is a good or bad thing.
6. Did you mean House of Cards and not pack? The recent worldwide crash shows that sustaininng this level of debt is not possible forever and the bubble will burst. Man United will have dark times again, football has always been this way. It's a case of when, and not if it crashes, as it is for a few top flight clubs.
7. I try to steer clear of these affairs,since it's none of my business,but I doubt United will crash.They're too big to go down.The Glazers will never allow their cash cow to die.Let's not forget they still have the Tampa Bay Bucaneers.The Glazers won't think twice to take funds out of the Bucs to inject into United.I think the Glazer's aren't above selling the Bucaneers to focus all their energy on United,and settle United's debt with the sale of the Bucs as well. I think you should worry about Chelsea as well.I've read that Roman has lost money every season with Chelsea.He's a businessman who lost a lot of money in the recession,I won't be surprised if he decides to pull out of Chelsea and leave them in the lurch.
8. I wonder the same about Chelsea when Abrahamovic leaves? Back to pre- 2004 Chelsea then...