Love Manchester United, Hate the Debt - What would you do?
Seeing as we don’t know anything about the Glazers’ business plan nor any details of how they plan to deal with Manchester United’s debt (save raising ticket prices), let’s look at what we do know:
- We know that the rising ticket prices and the new policies surrounding season tickets and especially the Automatic Cup Scheme has priced many hardcore Manchester United supporters out.
- We know that the Glazers made a move to restructure Manchester United’s debt in the summer but failed to reach an agreement because of rising borrowing costs.
- We know that in effect, Manchester United is owned by the banks until the club can pay off the debts. That’s assuming they can pay the interest on those debts first, which was 60m at last count and is now reported to go past 70m this year.
- We know that as long as the club keeps doing well (and there’s no reason that it shouldn’t), Manchester United can keep servicing the interest payments through it’s income and still have money left over to buy players.
It’s a tough position to be in as a fan. I love the club, I love the fact that we’re doing well financially in terms of pure income (the AIG deal, gate receipts, global merchandise sales, the Premier League TV deal, etc). However, the fact that someone used borrowed money to buy the club and saddle it with debt and then passed on the interest payments to the fans…it’s just galling and more than the debt, it’s the fact that the fans have to pay for it that’s pissing most people off (some just don’t like Yanks, but we’re more civilised, see?).
The MUST reports that season tickets this year have not all been sold out, that the famous waiting list has virtually disappeared and that after the legal action taken by several fans against the club, next year could turn out to be a lot worse for Manchester United if fans refuse to buy tickets. It’s a risk to bank on the popularity of a club by hiking prices and pissing off the hardcore supporters - and it can backfire in United’s face, although to be fair there’s no sign of that happening this season at the very least.
There has been rampant speculation that Manchester United could be sold as the Glazers run to save their asses. This is untrue as far as I know, and for one simple reason - the longer the Glazers hang on to the club, the more valuable it is going to become. AND…very little of their own money is in this venture, so it’s not as if they have any assets stuck. For the Glazers, it pays in spades to use the club’s income to pay of the debt over time and once the club is relatively debt free (and therefore the Glazers become entitled to most of the proceeds of a sale), they could sell if they wished.
Such a transaction would not happen this decade. I’m not saying that they definitely won’t sell, just that since it’s not their money and they stand to gain little out of selling at this point (as compared to selling 10-20 years down the line), they are far more likely to hang on to the club.
Fans will continue to buy tickets. Prices will continue to rise. Some rich Russian or Arab or maybe a Chinese or an Indian will buy Manchester United in the future. The fans will watch, helpless, as they pay for the Glazers’ retirement fund. We’re hostages, as much as we are fans.
Given the choice of supporting Manchester United through thick and thin and turning your back on this situation, what would you do?
Also see: what things were like last year.
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- Tottenham confirm bargain £30m deal for 4 Manchester United players
Discussion - 13 Responses
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well im no Man u fan but you’re club is doing well it is one of the top in europe but this stupid cunt (mind my language
) Glazer has put your club into danger but look at leeds i know couple of leeds fans and they have sticked with their club so its a bit of a stupid question (good article but stupid question) of course our gonna stick with your club no matter what
its one of the bitter mysteries of the round leather game.it hurts to be exploited by people whom are not basically richer than you are(Glaziers built their empire from other people’s money **LOANS**).But when u think of turning your back to the indefatiguable rooney, the incomparable ronaldo,the incontestable owen hargreaves then u would probably know we are all bound by that invincible cord of passion for the Red devils.We aint going no where.
If as a Nigerian,i wld passionately watch every of our games at surprisingly exorbitant rates from this part of the world after everything that Britian did to our Nation and how Man Utd history doesnt really depict itself a black tolerating club then u cld understand how this passion that has made me know all the youths we have in our reserve team works.
They cld sell it to Bin Laden for all they care.ITS STILL OUR MANCHESTER UNITED
They are not paying off the debt though, are they. It is going up, they would have been struggling to pay it off anyway, but with the credit crunch in the financial markets and who knows maybe a recession on the horizon, things don’t look too good for them as far as i can see. The season ticket rises over the last couple of seasons and now the automatic cup scheme have really alienated a lot of people. People who would never rock the boat normally, are now as up in arms over the current situation at the club as those of us who opposed the takeover from the start. I have been a season ticket holder since 1973-74 ( age of 10 courtesy of my dad ), the season we went down, but if prices go up again next season( and maybe if they don’t )it won’t be a case of do i renew or not, i just won’t be able to afford it.
The sooner these wankers are out of our club the better.
So long as Manchester United is winning, the debts are the last thing on the fans’ minds.
If the Glazers focus on cutting debts and do not loosen the purse strings, they will also be in trouble with the fans, so the status quo is just fine, main thing is United got to keep showing the results.
One question:
“We know that the rising ticket prices and the new policies surrounding season tickets and especially the Automatic Cup Scheme has priced many hardcore Manchester United supporters out. ”
Priced many hardcore Man Utd supporters out?
What, all three of them?
I have never seen any section at Old trafford empty or less populated when manchester United play… I have a feeling that the hardcore Man United fans who got priced out on season tickets were replaced by ex chelsea fans who got bored watching the games at stamford bridge and ex liverpool fans who just got tired of walking alone in no specific direction…
on a serious note… I dont think Manchester United has lost any fans…i feel they gained more world wide after winning the pre title and retaining the status of Champions of england.
Isn’t it embarressing for Man Utd fans that every time you watch MOTD the only noise you can hear is coming from the 2% of the crowd that are the away support? Note the term “support”.
Anyway, just saw this posted on another site, no idea of the authenticity or original source:
Manchester United ace Carlos Tevez and Liverpool midfielder Javier Mascherano could face five-year jail sentences, it has been claimed.
The Argentine pair are at the centre of a police probe in Brazil - and could face up to five years in jail for alleged tax evasion, according to reports in Brazil.
Manchester United striker Tevez and Liverpool midfielder Mascherano moved to West Ham last year from Brazilian club Corinthians.
The country’s authorities are now investigating alleged financial irregularities at the Sao Paulo club, involving players supplied by Iranian tycoon Kia Joorabchian and his company MSI.
They include Argentines Tevez and Mascherano, both 23, as well as Werder Bremen’s Brazilian midfielder Carlos Alberto and his countryman, Besiktas midfielder Ricardinho.
Police are seeking to establish whether the stars were involved in a scheme to dodge Brazilian taxes, and are investigating both current and former Corinthians officials as well as Joorabchian.
Sao Paulo daily O Estado quoted a 70-page police report, and claimed that the players could face two to five years in jail if found guilty of not declaring money they received to Brazil’s tax authorities.
Another city paper, Folha, alleged that Ricardinho and Alberto had struck an agreement with Corinthians and MSI to receive part of their salaries outside Brazil - which could constitute a crime in the South American country.
If the team keeps doing well I dont see them losing their fans either. Fan loyalty should overpower debt issues, there is no doubt that fans must be upset, but passion for the team and players is still high and cannot be effected.
bit off a crap question init look im a leeds fan and ide stick with my club through anything no matter wat
if ur a true supporter ull do wat ive done
lufc
Those of us “Yanks” who have the Glazers as owners of our Tampa Bay Bucs love’m for the fact they brought us a Super Bowl win, something I never thought I’d see in my life time.
Hmmmm so this is just about the only Footie team that is owned by the banks eh? How exotic
The fans will never turn their backs on their team, if you’re red, you’re red till dead.
Some comments such as. Die hard fans, what all 3 of them? You mindless, unfunny T**t. Take it a few years back, you couldn’t moan about the noise inside of Old Trafford. Fat bastard comes along, rising ticket prices, cup scheme, pricing normal fans out of the game, it’s full of foreigners, i swear them turbans near fergie have become like cult figures or something. I’m no racist, but there is alot of foreigners around Old Trafford, and even Fergie said it’s like a funeral inside Old Trafford, one reason being, our REAL fans aren’t there. One of my friends got quoted back for a season ticket in the north stand, he was renewing, he’s sat there many years, a GRAND, £1000! Pisstake or what! So before you call our fans shit, stop being dumb and think about it. I’d never turn my back on my club. Born and bred manc. I Bleed red, like every cunt in the world. Oh, and to my American friend, believe me, football is fuck all like the NFL.