Friday 8 October 2010

Manchester United in worse financial position than Ireland, Greece

Sadly, there are not many places for the poor citizens of Greece or Ireland to seek solace these days.

Perhaps a small ray of sunshine can be that they can console themselves that they are not alone in having delivered themselves into a structured finance mess.

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)


roym said...

not going to raise much from scholes, giggs or neville are they!

vidic or nani to go in the summer?

Bill Quango MP said...

I'll give 'em £80 for Owen or £120 if they throw in Rooney.

Andrew B said...

So, knowing little about football, I have a question:

How much of man-u's high rate of success is due to Mr Ferguson and his management abilities, and how much is due to spending lots of money?

CityUnslicker said...

B - Money doesnot gaurantee you success, but it helps, Fergie is good

Old BE said...

Manu probably have more citizens than ireland and greece combined! And all willing to stump up to swap their gold for paper when needs must.

Andrew B said...

And now pushing the analogy to unknown areas, How is it that :-

Mr Ferguson, who possibly appears to have given away his club's future by using that future income to buy current success is still v. popular


Mr Brown did the same thing to buy schools and hospitals and is not so much disliked as almost erased from history.

Bill Quango MP said...

Andrew B: Bit unfair on Mr Ferguson, who has never been a Chelsae or man city, although for years he had the biggest pot of gold..

But I would say the difference is Mr Ferguson was a winner, whilst Mr Brown was just Mr Brown.

Elby the Beserk said...

And as a City fan of over 50 years, I extend my heartfelt sympathies to United, and say - serve you right :-)

Elby the Beserk said...

Andrew B.

Both. He is clearly a great manager, but why he has to be such a cunt, who knows? Busby wasn't, Shanks, Stein, Mercer - all the greats of yore seemed to be able to do the job without behaving like an oaf.

Sadly. there is no chance of success now without oodles of dosh. A decade or so before the Premiership hijack of TV revenue, any one of half the division had a chance of winning it each season.