Friday, 8 October 2010
Manchester United in worse financial position than Ireland, Greece
Although given Irish predilections for supporting Manchester United, perhaps the news out today of Man U's £80 million loss will be a source of yet further woe.
However, Man U are in a terrible financial straight, saved by a canny re-negotiation of debt earlier this year, the underlying issues are still pretty gruesome. To translate into the Sovereign arena it looks like this:
% debt GDP/Revenue % Deficit 2010 Interest rate on debt
Ireland 80 30 6.5
Greece 113 12 7.81
UK 73 10 2.9
Man Utd 182.4 28.4 8.75
Of course, Governments tend to be able to raise money easier than corporates, but nonetheless I think the above shows the scale of the challenge they have, trying to keep total debt down when it is eating 40% of revenues can only be achieved by selling players.
As a Leeds fans I can only convey my deepest sympathies....:o)