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+--- Thread: DEBT-LADEN MAN UNITED ARE RIPE FOR PLUCKING (/Thread-DEBT-LADEN-MAN-UNITED-ARE-RIPE-FOR-PLUCKING)
DEBT-LADEN MAN UNITED ARE RIPE FOR PLUCKING - sypher - 13-12-2009
WHEN Manchester United decided to break new ground and expand Old Trafford's horizons, they targeted the Far East.
Peter Kenyon was shrewd enough to realise the burgeoning markets in China, Malaysia and South Korea were ripe for plucking.
Deprived of top-class live action but addicted to English football on television, Kenyon saw an opportunity for United to lead the way in the Orient.
Less than a decade later, the Far East has turned its attention to Old Trafford. The monster United helped create is anxious for its own slice of the action.
It was only a matter of time before China decided to flex its financial muscles in the Premier League.
Carson Yeung at Birmingham may have a toe-hold but the plan to buy United dwarfs any other deal seen in the history of the game.
Why would a group of Far East billionaires engineer a takeover masterminded out of Beijing?
Because they realise it is United who are now ripe for plucking.
Nobody at the heart of the game is convinced by Sir Alex Ferguson's claims that he has money burning a hole in his pocket where transfers are concerned.
Because while his team continues to win trophies, United's money men monitor the bank balance on an hourly basis.
Hocked to the tune of £699m and with annual interest bills in excess of £60m a year, times are tough at Old Trafford - thanks to the Glazers burdening the world's biggest football club with the biggest debt in the game's history.
United supporters have never been comfortable with their American owners, watching helplessly as a family business turned into a ticking financial timebomb.
There are fewer season ticket holders at Old Trafford this season, with only 55,000 taking up a renewal option after an agreement with the Office of Fair Trading.
There has also been a reduction in the number of hospitality packages being sold, partially a result of the economic downturn and a consequence of the general apathy at Old Trafford.
The Glazers are negotiating with several hedge funds in the United States, a rescue package for part of the club's enormous debt. It centres on a figure believed to be in the region of £175m, with interest rates locked at a whopping 14.25 per cent.
Few financial institutions are willing to help, shying away from a family famous for living under the dark clouds of debt.
There will be another refinancing attempt in January, another opportunity for the Glazers to put forward a powerful argument of intent to various financial institutions.
Emotions are running high in the family as they juggle their finances, with Joel Glazer recently releasing a statement defending their position with American football team Tampa Bay Buccaneers.
They are also fending off speculation as to the reasons behind the sale of Malcolm Glazer's home in Palm Beach last week.
Glazer bought the property, built on a 12,000 sq ft plot, for $14m in 2000 and sold the mansion for $24m.
A tidy profit, yet there are persistent questions about the family's finances.
There has been little significant financial investment in the United team recently, although Sir Alex Ferguson insists he is simply not prepared to pay sky-high prices.
Success
The £80m transfer fee for Cristiano Ronaldo - paid up front and in full by Real Madrid - has been tied up since the summer.
Every little helps the Glazer family, able to meet their complicated payment schedule with something to spare provided the team continues its success.
Many believe it is already time for change and yet it will take a monstrous amount of money to acquire Manchester United. The total bill would easily be more than a billion pounds, with the Glazers demanding a substantial return on their investment.
Since they acquired the club lock, stock and barrel in June 2005, the club have won three Premier League titles and the Champions League.
Arguably, this is the most successful period in United's history and yet few of the Old Trafford staff see it that way. More than 700 employees sift through the doors each day, many of them low on morale and fed up with operating under severe financial constraints.
While United continue to pay top dollar on players' salaries, the rank and file live in fear of the next set of cutbacks.
The clubs is about to offer Wayne Rooney a lucrative new contract, a deal that will make the England striker the highest-paid player in the Premier League.
Off the field there have been cutbacks, with redundancies strenuously denied by the club to this newspaper and then subsequently announced. At Carrington, a perk of the job - free porridge and toast in the canteen - has been taken away from any member of staff who are deemed "non-essential".
There was a time when a job at Manchester United meant a job for life. Not any more.
Three more senior executives have quit the club in recent weeks, leaving Old Trafford to "further their careers".
Gemma Allison, head of non-matchday sales, Sharon Burns, head of marketing, and Jereen Attoh, head of client relations, have all resigned.
They will all be missed at United, hard-working members of staff who were once part of a big happy family at Old Trafford.
Crucial
It is different now, with a "them and us" culture breeding resentment between the staff at Old Trafford and the sponsorship wing of the empire based in London's swanky Pall Mall.
There was a time when United seduced potential sponsors by granting them an audience with Ferguson, showing them around the training facilities in exchange for a lucrative long-term deal.
Now overseas clients fly into London, brokering deals in the capital instead of a trip to the Carrington training ground.
The London office is an expensive operation for the Glazer family and yet they insist it is crucial to the success of the club.
It's been a delicate balancing act for the Glazers, monitoring the money and counting medals since 2005.
Now the family have to make sacrifices; financial decisions to safeguard the future of the world's biggest football club.
And after five turbulent years at Old Trafford, it could even lead to its sale.
scource - news of the world
RE: DEBT-LADEN MAN UNITED ARE RIPE FOR PLUCKING - Phil-M.U.F.C. - 13-12-2009
Wonder what the likelihood of this is.
RE: DEBT-LADEN MAN UNITED ARE RIPE FOR PLUCKING - Noucamp99 - 17-12-2009
A good post sypher. I know it was copied from the papers, but you added your source. I will close this thread, though, as there is a similar one already being replied to and is 3 pages.
Please go to:
https://manutdpeople.com/Thread-%C2%A31BILLION-CHINESE-TAKEAWAY-AT-UNITED