Heroes & Villains, the Aston Villa fanzine
Heroes & Villains => Heroes Discussion => Topic started by: Dave Javu on October 08, 2010, 12:05:36 PM
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http://www.bbc.co.uk/news/business-11499023
Manchester United has reported an annual pre-tax loss of £79.6m, hit by one-off finance charges and reduced revenues from the sale of players.
The loss for the 12 months to 30 June compares with a profit of £48m for the year before, when revenues were boosted by the £80m sale of Cristiano Ronaldo.
The club's one-off finance charges during the past year totalled £67m. It also paid £40m in interest payments.
While its match-day turnover fell, this was offset by commercial earnings.
Manchester United's overall annual turnover increased to £286.4m.
The £40m spent on interest payments was the same as a year earlier.
Operating profit - which does not include the cost of servicing the club's debts - also rose, reaching £100.8m, compared with £92m a year earlier.
Manchester United was bought by the US-based Glazer family for £800m in 2005.
Critics say the family has saddled the club with massive debts, and this has led to protests by supporters' groups.
Many fans are continuing to boycott the team's traditional red shirts and scarves, and instead wearing green and gold, the original colours of Newton Heath, the amateur side which was founded in 1878 and went on to become Manchester United.
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So, if i get this right it was a £80m loss this year and £48m profit last year, because they sold Ronaldo? So without that it would have been a £32m loss and then a £80m one?
As they won't sell £80m players very often, I think that shows a worrying trend in their losses.
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Yes. I'm fighting back the tears.
Tears of joy.
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(http://t2.gstatic.com/images?q=tbn:ANd9GcQgKGeRNM_xWV8l9aERBx9KXmKiGDwDA_-fNRQNHqW6klg4SEY&t=1&usg=__2W2_QiXH7ERoUfwMOMu1iBqCmj0=)
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The bubble is about to burst on a very large scale!
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its staggering to think that without the debt lumped on them by the glazers, they could quite easily compete on a financial footing with man city, simply down to their profits...
dont get me wrong, its hilarious and all that, but its a frightening thought that the way they handled themselves after jumping on the flotation bandwagon at a time when we could compete with them, has given them this financial muscle... and that in the long term, has been undone by their flotation gamble...
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its staggering to think that without the debt lumped on them by the glazers, they could quite easily compete on a financial footing with man city, simply down to their profits...
dont get me wrong, its hilarious and all that, but its a frightening thought that the way they handled themselves after jumping on the flotation bandwagon at a time when we could compete with them, has given them this financial muscle... and that in the long term, has been undone by their flotation gamble...
You live by the sword, you die by the sword.
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This non-accountant doesn't understand how they can make an Operating Profit of £100m, pay £40 interest and then end up losing £80m.
Where did £140m go?
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its staggering to think that without the debt lumped on them by the glazers, they could quite easily compete on a financial footing with man city, simply down to their profits...
dont get me wrong, its hilarious and all that, but its a frightening thought that the way they handled themselves after jumping on the flotation bandwagon at a time when we could compete with them, has given them this financial muscle... and that in the long term, has been undone by their flotation gamble...
You live by the sword, you die by the sword.
Exactly John. If you dance with the devil....
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This non-accountant doesn't understand how they can make an Operating Profit of £100m, pay £40 interest and then end up losing £80m.
Where did £140m go?
I have no idea, but I remember an article I read somewhere saying that the Glazers are using some of the money from United to pay off mortgages in the US. Could be going there?
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its staggering to think that without the debt lumped on them by the glazers, they could quite easily compete on a financial footing with man city, simply down to their profits...
dont get me wrong, its hilarious and all that, but its a frightening thought that the way they handled themselves after jumping on the flotation bandwagon at a time when we could compete with them, has given them this financial muscle... and that in the long term, has been undone by their flotation gamble...
You live by the sword, you die by the sword.
absolutley...
i have been trying to say this to some clueless devon red nobend mates of mine, but they just dont get it...
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This non-accountant doesn't understand how they can make an Operating Profit of £100m, pay £40 interest and then end up losing £80m.
Where did £140m go?
Operating profit - which does not include the cost of servicing the club's debts
So the 40m interest plus the 67m finance charges, which probably are included in servicing the clubs debts.
These arrangements where they buy a club then load the cost onto the club and make it pay for itself should be made illegal.
Once Man United and Liverpool have gone down the shitter.
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No way will Man U go down the drain. Their brand is far too big. Some rich sheikh will step in and save them.
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No way will Man U go down the drain. Their brand is far too big. Some rich sheikh will step in and save them.
Fuck it. Seriously, why bother? Pay top dollar for the Dreg Devils, or spend a tenth on an underperforming historical giant like, say, Man City and use the cash saved to blow them out of the water.
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But what we really want to know is, how does their wage bill compare to that of Tottenham's?
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I could'nt be happier.
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No way will Man U go down the drain. Their brand is far too big. Some rich sheikh will step in and save them.
2 years ago if you said Liverpool could be heading into administration you'd have said exactly the same thing.
There are only so many rich Sheiks out there and how many of them have an even passing interest in football? Even if they were and were Man U fans would they be interested enough to buy a club saddled with so much debt?
Man U are stuck with the Glazers for some time, especially as we're now in recession and PL football appearing to lose some of it's flavour.
I don't know how much more of this good bad news I can take.
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No way will Man U go down the drain. Their brand is far too big. Some rich sheikh will step in and save them.
Fuck it. Seriously, why bother? Pay top dollar for the Dreg Devils, or spend a tenth on an underperforming historical giant like, say, Man City and use the cash saved to blow them out of the water.
When were Man City ever a giant?
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No way will Man U go down the drain. Their brand is far too big. Some rich sheikh will step in and save them.
Fuck it. Seriously, why bother? Pay top dollar for the Dreg Devils, or spend a tenth on an underperforming historical giant like, say, Man City and use the cash saved to blow them out of the water.
When were Man City ever a giant?
1930's? You get my point though.
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I read earlier that Man Utd only paid £2.6m tax.
How?
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No way will Man U go down the drain. Their brand is far too big. Some rich sheikh will step in and save them.
Fuck it. Seriously, why bother? Pay top dollar for the Dreg Devils, or spend a tenth on an underperforming historical giant like, say, Man City and use the cash saved to blow them out of the water.
When were Man City ever a giant?
1930's? You get my point though.
One title and one cup? Meh.
I do get your point though.
Although, looking at just how much money they're spaffing into City, I wonder if financial rationality plays any part of it.
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I doubt the £80m sale of Ronaldo was paid upfront.
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Man U are stuck with the Glazers for some time, especially as we're now in recession and PL football appearing to lose some of it's flavour.
Are we? Seriously, I am out of the country, has it been announced that we're (the uk) is back in recession?
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No way will Man U go down the drain. Their brand is far too big. Some rich sheikh will step in and save them.
Fuck it. Seriously, why bother? Pay top dollar for the Dreg Devils, or spend a tenth on an underperforming historical giant like, say, Man City and use the cash saved to blow them out of the water.
When were Man City ever a giant?
1930's? You get my point though.
One title and one cup? Meh.
I do get your point though.
Although, looking at just how much money they're spaffing into City, I wonder if financial rationality plays any part of it.
Around 1967 to 1970 they were a potent force, winning the League, FA Cup, League Cup and the European Cup Winners Cup. They had has players like Francis Lee, Mike Sumerbee and Colin Bell.
They seemed like giants to me at the time, but then I was a callow youth and we were in Division 3.
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As they won't sell £80m players very often, I think that shows a worrying trend in their losses.
Worrying John?...no I am over joyed. The more they and the other Sky Clubs lose the better.
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This non-accountant doesn't understand how they can make an Operating Profit of £100m, pay £40 interest and then end up losing £80m.
Where did £140m go?
According to various reports on the web the difference includes player-related costs (which is likely to be the write-off of the transfer fees they've paid in the past over the length of the player contracts), and the costs of the bond issue which were almost £50m apparently.
They haven't released the accounts yet, only announced the results, so it's quite difficult to find much detail.
Oh, and I'm not sure what Spurs' wage bill is but Utd have said theirs is £131.7m whereas ours last year (so not entirely comparable) were £63m.
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Man are the richest club in the world and the most valuable.
The glazers plan was always to sell Utd after a few years.
Liverpool are not even on the same level as Man Utd, in terms of recent success, value, infrastructure, playing staff and management.
So in my opinion Man U won't end up like Liverpool because of the Glazers.
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All they need is some MLB rich-daddy to wipe out their debts and return them to their previous glory.
Hang on...
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It is disgusting to see business doing this to Liverpool and Manchester United making the club pay for their purchasing of club. If you don't have cash to buy it don't buy it
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All they need is some MLB rich-daddy to wipe out their debts and return them to their previous glory.
Hang on...
The thing is, though, he's nowhere near rich enough.
I'm sure he'll be a damn sight better for them than G&H were, but listening to Liverpool fans this week, there was a palpable sense of disappointment that it wasn't some mentally rich oil baron taking them over.
Football has always been to some extent about how much money you've got, but these days it is everything.
Depressing.
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It is disgusting to see business doing this to Liverpool and Manchester United making the club pay for their purchasing of club. If you don't have cash to buy it don't buy it
It is morally, but they bought a business. In any other walk of life you use the business to pay for it's self and to make a profit.