TheDogsNutts
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Explanation Of Glazer's Debt Financing Proposals
Email from shareholder united, you ABU's will love this......
as contained in his Circular dated 23 May 2005
THE FULL HORROR REVEALED
Summary
Glazer has taken on up to £921 million of debt, both personal and
corporate, to acquire United.
If this debt is allowed to run for at least 7 years, then the accumulated
repayment value could reach as high as £1.5 billion.
The debt leveraged on United's assets could be as much as £700 million
within 6 months of closing of the offer.
Servicing that £700 million debt (interest & principal repayments) would
average out at approx. £85 million p.a. for the first 7 years, increasing
substantially thereafter
Glazer could reduce the debt burden by the sale & leaseback of Old
Trafford, which might net him £200 million.
In that case, servicing the debt could still cost the club an estimated £55
million per year, plus the annual OT lease payment.
The offer document contains no detail on how the club might generate enough
cash to pay down this debt and no commitments on transfer funds or other
key issues for United fans and small shareholders.
Manchester United is in peril as never before. No other football club has
ever had a debt burden of this size, and there is no real prospect of
clearing this debt for many years to come.
Nick Towle, SU Chair
More comprehensive details here:
http://www.suforum.org/downloads/Glazer_Financing_Analysis.doc
Email from shareholder united, you ABU's will love this......
as contained in his Circular dated 23 May 2005
THE FULL HORROR REVEALED
Summary
Glazer has taken on up to £921 million of debt, both personal and
corporate, to acquire United.
If this debt is allowed to run for at least 7 years, then the accumulated
repayment value could reach as high as £1.5 billion.
The debt leveraged on United's assets could be as much as £700 million
within 6 months of closing of the offer.
Servicing that £700 million debt (interest & principal repayments) would
average out at approx. £85 million p.a. for the first 7 years, increasing
substantially thereafter
Glazer could reduce the debt burden by the sale & leaseback of Old
Trafford, which might net him £200 million.
In that case, servicing the debt could still cost the club an estimated £55
million per year, plus the annual OT lease payment.
The offer document contains no detail on how the club might generate enough
cash to pay down this debt and no commitments on transfer funds or other
key issues for United fans and small shareholders.
Manchester United is in peril as never before. No other football club has
ever had a debt burden of this size, and there is no real prospect of
clearing this debt for many years to come.
Nick Towle, SU Chair
More comprehensive details here:
http://www.suforum.org/downloads/Glazer_Financing_Analysis.doc
