Cassidy
No longer at risk of being mistaken for a Scouser
- Joined
- Oct 2, 2013
- Messages
- 32,059
https://www.gurufocus.com/term/EffectiveInterestRate/Man Utd/Effective-Interest-Rate-on-Debt-/Manchester-United-PLC#:~:text=2022 was $781.7 Mil.,2022 was 4.80%.
That looks like 4.8% to me, but again, not a financial expert.
Jesus Christ. The Glazers took out a loan, to finance the takeover, against the club. The club is liable for the debt. SJR is using Ineos for the loan. The club is not liable. leveraged buyouts are not possible now as far as I am aware. This is also different to potential stadium debt because we would have an asset that generates higher income, used to pay off the debt, without the club being worse off. That obviously didn’t happen with the Glazers debt because even though they grew the asset, they pocket all the income through dividends, instead of paying off the debt.
The club will still be liable for the debt it has since it's not going to be cleared.
The clubs finances will be tethered to another company Ineos with debts it may not be able to service, then what? The terms of this debt/liability needs to be known, if the parent company that owns the club cannot service its debt, it won't be a good thing for the club.
There are unknowns here, but I'm not entirely against the bid, things need to be made clear about what debt instrument is being used, the terms etc