Bates is an amateur compared to these parasites.
Nigel. 2010/1/19 John Boocock <[email protected]> > Couldn't happen to a nicer club.............. > > > http://www.guardian.co.uk/football/2010/jan/19/manchester-united-finance-the-glazers > > Glazers could take £130m out of Manchester United next year > > * David Conn and Owen Gibson > * guardian.co.uk, Tuesday 19 January 2010 > > > The Glazer family, who own Manchester United, can take almost £130m cash > out of the club next year alone if enough lenders sign up for the bond they > have launched to borrow £500m for United. > > Nestling in the small print of the 322-page bond prospectus are provisions > allowing the Glazers to take £70m out of the club's cash reserves, which > includes the money they have received from selling players such as Cristiano > Ronaldo. The document also reserves for the Glazers the legal right to pay > £25m out of the club in a dividend, and half of what is termed "consolidated > net income". This is effectively the club's cash profits, which based on the > most recent accounts would have meant £23m being paid out last year. > > The bond's terms also note that the Glazers will have the right for £6m a > year to be paid to companies they own "for administration and management > services", and a further £3m "in respect of services provided by directors, > officers or employees" of companies the Glazers use to hold their shares in > United. > > That money, added to the £70m and £25m one-off payments, plus the half of > United's cash profit they can take out each year (equating to £23m last > year), add up to £127m next year alone. > > That huge figure is in addition to the straightforward payment of interest > (yield) on the £500m the club will have borrowed via the bond, which at a > mooted 9%, will be £45m. That will bring the total taken out of United to > service the Glazers' borrowings, which were loaded on to the club after the > family bought the club in 2005, to £172m next year alone. > > It has become increasingly clear since the prospectus was launched last > week that its principal purpose is to allow the Glazers to take cash out of > United to reduce the amounts they owe in "payments in kind" to hedge funds, > which are running at a punitive £14.25% interest. Standing at £175m in the > year to 30 June, 2008, the "payments" accrued £25m interest in the year to > 30 June, 2009, and so stand now at over £200m. That debt is secured on the > United shares the Glazer family own, and it is clear their financial > priority is to use United's giant turnover and profits to pay down that debt > before the interest "rolls up" dramatically. > > A calculation of the total cash which the bond would entail being paid out > of United in dividend payments, the yield from the bond, management fees and > the possible requirement for the club to lease the Carrington training > ground, is more than £500m between next year and the maturity of the bond in > 2017. > > If the bond issue is fully taken up by lenders, it will mean that since the > Glazer family bought United in May 2005 for £810m – £540m of it borrowed > from banks and hedge funds – their takeover will have already cost United > £340m in cash. That comprises £220m in bank interest plus "early-repayment > premiums" made when the borrowings were first refinanced in August 2006. A > further £120m will have been incurred in fees paid to bankers, lawyers and > other professionals – the fees for this bond issue are noted as £15m – plus > £35m incurred by the club's interest rate hedging arrangements. > > On top of that, the "payments" have incurred interest payable of around > £124m since the Glazers first borrowed the money to buy United. > > A Glazer family spokesman, who also speaks for United on financial matters, > declined to comment. > > Nick Towle, chair of the Manchester United Supporters' Trust, said: "It is > a shocking picture. These are immense amounts of money being leaked out of > United to pay banks, lawyers, the Glazers themselves and interest, to pay > for a takeover none of the supporters, or the United board itself, wanted. > > "United's success and profits could have been used to keep ticket prices > affordable or invest in the team but instead we see this heartbreaking > waste, just because one family ultimately hopes to make a profit from the > club." > > > > _______________________________________________ > the Leeds List is an unmoderated mailing list and the list administrators > accept no liability for the personal views and opinions of contributors. > Leedslist mailing list > [email protected] > http://list.zetnet.co.uk/mailman/listinfo/leedslist > www.leedslist.net > -- ----«(( www.concentrichron.com ))»---- Mindbrix -- Dream it, draw it, build it, love it 69 Derby Street Beeston Nottingham NG9 2LG +44 7905 311 352 [email protected] www.mindbrix.co.uk Skype: ntbarber twitter.com/mindbrix _______________________________________________ the Leeds List is an unmoderated mailing list and the list administrators accept no liability for the personal views and opinions of contributors. Leedslist mailing list [email protected] http://list.zetnet.co.uk/mailman/listinfo/leedslist www.leedslist.net
