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Post by Keano's Lovechild on Jul 11, 2006 13:42:03 GMT
Manchester United is in talks with financial institutions to borrow up to £500m against the value of its future ticket sales at the club's giant Old Trafford stadium.
It is believed that Royal Bank of Scotland is drawing up a plan that would see the club securitise future match-day revenues over a 25-year period. The Edinburgh-based bank recently undertook a similar deal for Arsenal FC
Dont know if this was already put up but surely another loan is the last thing we need..... anybody shed some light?
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Chris
United Bench Warmer
Posts: 968
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Post by Chris on Jul 11, 2006 13:50:40 GMT
I don't know much about financial stuff but I think the idea is to use this loan to pay off the loan we have at the moment which has a stupidly high intrest rate. This loan would have a lower intrest rate as it's against the future ticket sales which are I guess a pretty stable income.
I think thats the case anyways probably wrong. If it's good or bad depends on who you speak to as opinions seem divided.
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Post by missunited on Jul 11, 2006 13:56:04 GMT
I am being incredibly lazy today... a conversation was started on this in the 1 year season ticket thread yesterday, so just copied my comment from there..
The club are at the moment financially stabile, yes we have a major debt, however compared to the size of the club and the value of the club this doesn't at the present cause a problem. The loan we have with J P Morgan is secured against the clubs assets, and as a high interest loan if we struggle to repay this it can have a major effect on the club's finances. Also J P Morgan aren't interested in the future of the club, if they suspect in anyway that they won't get their money back, I very much doubt it they will be that easy to negotiate with.
However, the MEN can but speculate at this point untill re financing has become a reality, and it is likely to become. I know a lot of people hate the fact that the Glazers own us now, but to them it is an investment and therefor it is important to remember that they will do what in the best way will protect their investment.
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Post by Kamilo on Jul 11, 2006 13:56:16 GMT
we dont need this loan we will gain enough revenue from new seats, kits and just sucess in the league fa cup... glazer just doesnt like negative numbers hes an idiot
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Post by missunited on Jul 11, 2006 13:57:25 GMT
RBS are a major financial institution who would go the distance with United, it would be in their best interest to make sure the club would not go bankrupt and a loan with them or a similar institution would be a safer option than an high interest loan as the current one with J P Morgan.
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Post by hyderedphil on Jul 11, 2006 15:06:11 GMT
Loan they are looking to take out is at alot lower intest rate so makes good sense.
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Post by Carlito's Way on Jul 11, 2006 15:49:38 GMT
arsenals loan is apparently only 5.28% APR whereas most of our debt is currently around 20% APR so it would be ridiculously stupid not to consider a similar deal to arsenals
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Post by Busby Boy on Jul 11, 2006 18:49:53 GMT
My Dad explained all of this to me and it's good for the club.
For example. You borrow £10 off the local drug dealer with a interest rate of 25% a day.
after 2 days you owe him £15. You go to your mate and borrow £15 off him to pay off the dealer at an interest rate of 10%.
Everything's rosy and you won't get shot.
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Post by Red Yank on Jul 11, 2006 19:18:20 GMT
My Dad explained all of this to me and it's good for the club. For example. You borrow £10 off the local drug dealer with a interest rate of 25% a day. after 2 days you owe him £15. You go to your mate and borrow £15 off him to pay off the dealer at an interest rate of 10%. Everything's rosy and you won't get shot. I like the drug dealer analogy....takes me back to the days of my neighborhood when it was a drug haven.  |
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Post by Dizzy on Jul 11, 2006 19:24:45 GMT
My Dad explained all of this to me and it's good for the club. For example. You borrow £10 off the local drug dealer with a interest rate of 25% a day. after 2 days you owe him £15. You go to your mate and borrow £15 off him to pay off the dealer at an interest rate of 10%. Everything's rosy and you won't get shot. This makes things way easy for my simple mind. =) |
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Post by Busby Boy on Jul 11, 2006 21:44:04 GMT
My Dad explained all of this to me and it's good for the club. For example. You borrow £10 off the local drug dealer with a interest rate of 25% a day. after 2 days you owe him £15. You go to your mate and borrow £15 off him to pay off the dealer at an interest rate of 10%. Everything's rosy and you won't get shot. This makes things way easy for my simple mind. =) Simple minds think alike  |
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Post by rewdie on Jul 11, 2006 22:11:05 GMT
My Dad explained all of this to me and it's good for the club. For example. You borrow £10 off the local drug dealer with a interest rate of 25% a day. after 2 days you owe him £15. You go to your mate and borrow £15 off him to pay off the dealer at an interest rate of 10%. Everything's rosy and you won't get shot. Lol after reading allabout this and not really understaing, that summed it up lol, cheers mate See, they should just learn to teach like this in school, we would understand so much quicker.... MUFCADZ ur a poineer ;D |
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Post by Busby Boy on Jul 11, 2006 22:21:44 GMT
My Dad explained all of this to me and it's good for the club. For example. You borrow £10 off the local drug dealer with a interest rate of 25% a day. after 2 days you owe him £15. You go to your mate and borrow £15 off him to pay off the dealer at an interest rate of 10%. Everything's rosy and you won't get shot. Lol after reading allabout this and not really understaing, that summed it up lol, cheers mate See, they should just learn to teach like this in school, we would understand so much quicker.... MUFCADZ ur a poineer ;D Thank you, thank you!... First of all to succesfully get this into schools we take over 10 Downing St by force... RED ARMY! RED ARMY! ;D |
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Post by rewdie on Jul 11, 2006 22:36:57 GMT
Lol after reading allabout this and not really understaing, that summed it up lol, cheers mate See, they should just learn to teach like this in school, we would understand so much quicker.... MUFCADZ ur a poineer ;D Thank you, thank you!... First of all to succesfully get this into schools we take over 10 Downing St by force... RED ARMY! RED ARMY! ;D Lets start up a riot then, me and you can then sneak in the back, kidnap Blair and force him to put us in power, then we attack the school systems and shut down any papers running anti United propaganda ;D ;D Our world domination begins.... O and we get Bush to bomb SB with Kenyon and Mourinho inside |
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Chris
United Bench Warmer
Posts: 968
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Post by Chris on Jul 11, 2006 22:38:56 GMT
I think the worry a lot of people had with this though, was the fact the debt is being secured against club assets, and if ticket sales drop and that income becomes unstable then we could be in trouble. As said though, I don't know much about the financial stuff, so could be wrong.
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