Top city financiers discuss United bid

Originally Posted by BulgarianSpectator

Problem is the bond (£505M) is set out to pay the holders 9% interest every year for 5 years, so £730M is needed to pay it off (unless they can negotiate an early pay-off).

The PIK notes are running at least £230M now, so there's £960M just pay off debt and due interest. Just for the Glazers to walk away with nothing (not likely that, is it?) A 10% profit is going to set the bill to £1,050m. Oh, and banks will want a fee for sorting the finance... another £50m isn't unrealistic.

Total cost £1.1B. Interest on that is going to be 8% at best - £90M-£100M a year - far more than is currently being paid.

Unless one of the Red Knights is Bill Gates, there's no way a profit can be turned in to new owners by borrowing money to buy out the current regime. Is it a shock that the Glazers have said "not fo sale"... if it were, they'd have cashed in already.

Maybe "the cash the company has to hand" (Gill claims £130m) could pay the first year of interest. Then Rooney. Then the rest of the squad. Then the ground.

The bond coupon averages 8.5%pa, with payments of £21.5m in August and February each year for seven years. There is a buy-back option at face value in three years.

The PIK debt was due to be reduced by £70m of Gill's £146m cash-pile following the bond issue when the senior debt was paid off. Another £30m of the club's cash was also being used to pay off the senior debt and bank fees. That leaves £46m which the Glazers can pillage any time. The PIK debt therefore currently stands at £148m, but interest will accrue at 16.25%pa from August this year.

If 'Top city financiers' are the answer it must be a very silly question.

Originally Posted by Sparky***

Sounds like a job for you magic....

Major banter.

There are more and more empty seats at O.T for 'smaller' games now. It will only get worse tbh. And we're due a season of not winning one of the big trophies soon, it will be interesting to see how many more empty seats appear.

Originally Posted by redloner

If we thought the Glazers were bad for us in the last five years, just wait for the next five. Most of what we thought they would do, they COULDN'T.

Now, they can.

If O'Neill's gang can get hold of £600m, relatively cheaply, it would be better to get rid of the Glazers and their PIKs with that, keeping on the bond debt for the minimum three years.

We know United can afford to pay out £43m a year because it has done it for the last five years. It's the probability of the Glazers unscheduled cash demands that will £#%&! us up if we don't get rid. I suspect United (and Tampa Bay Buccs) are funding their lifestyles and property business in the States. We got saddled with the only billionaire(s) in the world with no bloody money.

Let's wait and see what O'Neill puts on the table for the fans, then if it looks good we'll know it's worth backing.

sounds like you know your shit there, R.L.

are you hopeful that they would sell given a decent enough offer ?

I've no doubt Harris and O'Neill will want as big an ST strike as we can get to drive down the price as much as possible. The less they pay, the less burden on United afterwards.

If we do win 19 and/or 4 in May, I suspect Ferguson may decide to retire, lumping further pressure on the Glazers through the uncertainty of future success and hence, income.

The big difference for an ownership group that engages with the fans is the amount of goodwill that can be generated. It would cost £4m to reduce general ticket prices by £2. Not a great cost, but a great gesture in the face of Glazer increases. If the owners then asked fans to buy more in the ground would the fans back that call? I'd say they probably would.

A little carrot goes a long way when all you're used to is plenty of stick.

I thought it interesting to read that Jim O'Neill is a good friend of Fergie's. Might explain some of the recent apparent slight softening towards the protests. The key will be getting a serious direct threat to the Glazers' future income. If they eventually believe the fans are serious about hurting their future income they'll sell for a profit I reckon.

Originally Posted by redloner

I've no doubt Harris and O'Neill will want as big an ST strike as we can get to drive down the price as much as possible. The less they pay, the less burden on United afterwards.

If we do win 19 and/or 4 in May, I suspect Ferguson may decide to retire, lumping further pressure on the Glazers through the uncertainty of future success and hence, income.

The big difference for an ownership group that engages with the fans is the amount of goodwill that can be generated. It would cost £4m to reduce general ticket prices by £2. Not a great cost, but a great gesture in the face of Glazer increases. If the owners then asked fans to buy more in the ground would the fans back that call? I'd say they probably would.

A little carrot goes a long way when all you're used to is plenty of stick.

nothing like reading an enlightened post before I go to bed (at 3am in the morning). any chance you can help me out with my own cash accounts in the coming weeks

Originally Posted by redloner

I've no doubt Harris and O'Neill will want as big an ST strike as we can get to drive down the price as much as possible. The less they pay, the less burden on United afterwards.

If we do win 19 and/or 4 in May, I suspect Ferguson may decide to retire, lumping further pressure on the Glazers through the uncertainty of future success and hence, income.

The big difference for an ownership group that engages with the fans is the amount of goodwill that can be generated. It would cost £4m to reduce general ticket prices by £2. Not a great cost, but a great gesture in the face of Glazer increases. If the owners then asked fans to buy more in the ground would the fans back that call? I'd say they probably would.

A little carrot goes a long way when all you're used to is plenty of stick.

I suspect you're way off the mark there. He's already planning for next season and talking about players who will be staying.

tbph this sounds like they're playing at it

harris has clearly said previously that getting the cash together was the easy bit

so it's quite straightforward really. put your money where your mouth is, make an offer to buy the club for whatever they realistically ask, deal with the bond as the T's & C's dictate with a view to either seeing it out or using it as the model for enabling fan ownership or whatever it is you propose...

incidentally, a couple of points

it's a very convenient position to take at this time to say that the reason the glazers didn't do all the doom as predicted was because they couldn't, but now they can, so we think they will do all the doom as predicted starting from now. bit silly really. put it like this, people mocked the idea that they might have a 'business plan', yet 5 years is but a very short time, and now those same people are saying that the glazers clearly had a 'business plan' all along. well, yes they did. i'll wager thee that their plan was to brag that they owned something much coveted, and to make money. from my own perspective - and hence why these people won't stop me going to Old Trafford - unlike many (on here and in real life) i don't discriminate between capitalist scum and their money-making schemes all that much.

secondly, this idea that Ferguson might call it a day on the winning of a particular trophy or the achievement of a particular target is compelling. it's been compelling for about 10 years or so. sooner or later he will quit, but fairly obviously it will be either for health reasons, or because he feels it would be in the best interests of united. imo.

Originally Posted by toseeunited

Glazer statement already: "Manchester United is "not for sale"

No use carrying on then IMO.

Just bought an away shirt with "Oh Well" on back

Originally Posted by Sparky***

Sounds like a job for you magic....

Missed this.

Originally Posted by BarryX

are you hopeful that they would sell given a decent enough offer ?

Originally Posted by RedMenace

The key will be getting a serious direct threat to the Glazers' future income. If they eventually believe the fans are serious about hurting their future income they'll sell for a profit I reckon.

the lenders will insist they sell. and £#%&! them getting a profit. they should count themselves lucky if they get out not carrying their £#%&!ing balls.

This summer is a huge summer for the club, due to the momentium created from the G+G movement, and the 17% increase fans now more than ever will consider giving up the ST or not attending games next season.

Those who are interesting in taking us over, must connect with those that do and dont go, if there's a way they could freeze season ticket prices or general ticket prices more fans than ever might jump on board.