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UNITED -£79m v GLAZERS ‘nil’

Submitted by on May 18, 2011 – 10:00 pmNo Comment

The Guardian’s David Conn has uncovered the annual financial figures for all Premier League clubs, which show that despite United’s £286m turnover, they actually lost £79m due to loan repayments. The figures also reveal that the Glazers have put a grand total of ‘nil’ into Manchester United Football Club.

It once again brings home how poorly off United are under the Glazer regime. If they weren’t owners of the club, there would be nearly £300m in surplus cash knocking about. Should Ferguson retire upon winning a possible third European Cup, the end of his reign of luck and genius will put United in a very precarious position. With no money to rebuild, one has to fear for the future. But it’s OK, cos the reds keep winning on the pitch…

It makes the Glazers’ business plan obvious to all – they have used money lent by banks to buy the club, therefore costing them nothing. They then take money out as their own profit from the turnover figures, yet put nothing back. They will hope to sell the club at a massive profit, leaving the debt to be paid off by the next owners. Genius really. And many thousands of reds are letting them get away with it and actively helping them stay at the helm. That’s the biggest shock of all. Anyway Conn says:

The four clubs not bankrolled by owners were Arsenal, whose shareholders last month pocketed a combined £243m selling to Stan Kroenke, but never put a penny into the club itself, West Bromwich Albion, Everton and Manchester United. The Glazer family’s ownership has cost United around £350m in interest, fees, loans to the family themselves and bank charges since 2005, and they have never put money into the club. In the year to June 30 2010, United paid £42m interest on the £500m loans the Glazer family originally took out to buy the club in the first place, and just refinancing that debt, replacing the loans with a bond, cost United an eyewatering £65m, cash.

The Glazers, though, are the exceptions in causing money to be taken out of their club, particularly with Hicks and Gillett, the other US “leveraged buyout” practitioners, forced out of Anfield. Most owners have put huge finance in, yet one of the most extraordinary aspects of this subsidy is how small a proportion of it has financed anything permanent, whether stadium-building or other club infrastructure.

Almost all the stadiums were already built or refurbished when the current generation of owners bought the clubs. So the overwhelming proportion of the £2.3bn the owners have contributed has gone on paying transfer fees, superstar wages and other expenses, beyond what the clubs could otherwise afford.

Full results:
http://image.guardian.co.uk/sys-files/Guardian/documents/2011/05/18/sportscribddoc.pdf?intcmp=239

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