Our Debt

[LoftusRoadLad]

5th in Europe for highest net debt

http://www.dailystar.co.uk/sport/football/578101/Manchester-United-debt-most-Europe-UEFA-finances-money-sportgalleries

[luca]

Shocking to see how bad money has been spent! I mean all the other clubs on the list at least have success!

[topperharley]

Well at least we're playing up there with Europe's finest like Tony wanted!

[Tarbie]

According to the tabloids mate. Given that none of us here know all of the ins and outs of the supposed "write off" last season, I really doubt the Daily Star really know all the facts either.

If the debt is really sat at 279m then what is for certain is that most of that is owed to the board, which is a very different situation to owing a bank or other external creditors!

[brightonr]

Two things I find very frustrating.

Firstly, how national newspapers are allowed to simply come out and print such inaccurate nonsense.

Secondly, how on earth can ANY member of this board believe a word of it?

It's a well known, fully documented fact that after the initial write off of £60m, a further £240m was turned into shares, removing the debt.

TF and his partners have made all sorts of errors, but leaving us in debt isn't one of them. Seems to me like some people will clutch at anything to get a dig in.

[Kevin Mcleod]

The thursday feel good factor smashed to bits

[Gtleighsr3]

wonder if we got PPI on ay of them loans,quick call Gladston Brooks

[James1979]

Load of rubbish. Our debt is shareholder loan and is not debt. We have zero third party debt.

[Tarbie]

Load of rubbish. Our debt is shareholder loan and is not debt. We have zero third party debt.

Pretty much how I'd understood it!

[1973 ranger]

Tarbie, Are we to assume if the club was sold that the shareholders are happy to just lose the 250 million or whatever it is?

[Tarbie]

Tarbie, Are we to assume if the club was sold that the shareholders are happy to just lose the 250 million or whatever it is?

Not at all mate. In fact they are apparently slowly clawing it back on a monthly basis out of our P&L. But let's be honest, even the most generous valuation of the club would struggle to justify a 250m value. As such, we are in negative equity and in all likelihood, the shareholders will never see that money back in full!

[brightonr]

Tarbie, Are we to assume if the club was sold that the shareholders are happy to just lose the 250 million or whatever it is?

I appreciate you were asking Tarbie, but they would have had to lose it unless someone was mad enough to pay them that amount for the club. They lent the club money as there was no chance of anybody else doing so. The fact that they wasted it is tough really, they shouldn't have made such bad decisions.

On the plus side, they converted the debt into shares leaving no debt. Therefore, they are owed nothing. Going to have to rely on the value of the shares at any given point if they expect to recoup it. And there's no chance of that until success returns and we make a better fist of it than last time.

[Tarbie]

I appreciate you were asking Tarbie, but they would have had to lose it unless someone was mad enough to pay them that amount for the club. They lent the club money as there was no chance of anybody else doing so. The fact that they wasted it is tough really, they shouldn't have made such bad decisions.

On the plus side, they converted the debt into shares leaving no debt. Therefore, they are owed nothing. Going to have to rely on the value of the shares at any given point if they expect to recoup it. And there's no chance of that until success returns and we make a better fist of it than last time.

That's if this "converted to shares" thing is all that it seems.

Did you happen to see the annual accounts Brighton?

If there is a payment to shareholders as has been suggested, I'd like to see what business model that is based on. I've never known shareholders of a loss making business being paid a dividend before!

[1973 ranger]

Cheers Lads, Makes it even harder to understand why the wasting went on so long. Really difficult to understand and highlights how poorly we have been run.

[Timmy the Doc]

What would be the selling price of our club?