A collation of my responses to comments on David Bond’s article entitled “Key Period In Battle For Man Utd” concerning the Red Knights’ plan to buy Manchester United from the Glazers.
62. At 01:07am on 21 May 2010, WC2010GROUPC wrote:
Manchester United is not liable for the PIKs. The PIKs are held by Red Football Joint Venture Ltd and are secured on that company’s shares in Red Football Ltd (and thus the club). If they are not repaid by 2017, the Glazers will almost certainly lose all their shares in Red Football Ltd (and the club) to hedge funds.
(Reply at 66)
Placing the debt in a holding company doesn’t make the situation better.
- They walk away unscathed, already having earned substantial amounts from the club.
- The creditors take control of the club and its assets.
That’s modern capitalism for you. 🙂
67. At 03:28am on 21 May 2010, Stan_Mathews_Fan wrote:
Must agree with most of the comments made by WC at 59 & 65, personally I doubt the average fan really knows what goes on in these highfinance board rooms, getting the Glazers out might result in changing 6 for half a dozen,lets face it all these Investors, Bankers etc. are not in it because of love of the game (of course there are notable exceptions), but as an investment with a profit as the ultimate objective when they finally sell or recoup their inicial investment, some of them lose money, it’s just like the stock exchange.
(Reply at 69)
What underlies or motivates “high finance” is not particularly different from the rest of the economy – profit and the acquisition of wealth.
More complex structures may be used, but increasingly, even those who create or transact in those structures don’t really understand them. Why do you think the world economy is in the state it is in? See for example CDOs.
That many owners of football clubs treat fans as consumers of a product, rather than as having a stake in the history, and future, of the club, is not an insignificant factor in the the financial troubles of several clubs at all levels, from the Premier League down to several levels of non-league football.
(Comment at 35)
The Red Knights might be better off turning their attention to FC United of Manchester. Although the current ownership of the club is intended to keep it in the hands of supporters, I’m sure they could be bought out, if the offer was attractive enough. It would cost a lot less than trying to buy Manchester United. 🙂
They might consider changing the name of the club as well. Manchester Heathens anyone?
They might take a significant portion of the “Love United, Hate Glazer” brigade with them.
Manchester United will continue to be owned by the Glazers, with fans around the world, but ever fewer in Manchester and its surrounds.