Thread: @ManUtd -

Credit @KieranMaguire

#mufc finance in layman's terms & not agenda based BS from fans...

Supporters want their club to exist. We want to continue to watch @ManUtd every week. The owners have a responsibility for the long term survival of the club...

mufc wage bill is around £25m pm, 2nd highest wage bill in world football. At this time of the year, clubs will recieve money from ST renewals. Sky&BT will pay big part of their money, which helps clubs with wages & transfers. @ManUtd make £110m a year from ticket sales...

Post SAF, majority of transfers have been bought on credit. A bit like using credit card to make purcahses. Recently #mufc began clearing this & then came a long the pandemic. @ManUtd finances are "solid" to quote @KieranMaguire United will look at ESSENTIAL & NON ESSENTIAL...

spending. Essential being wages of players/coaches/staff etc

Non essential will be on things such as transfers etc. @KieranMaguire did a similar podcast for an Lfc station & they had the same concerns as #mufc fans. Lfc have recently won the PL & CL previously but still have...

major concerns over their finances, not forgetting that they originally chose to go on the furlough scheme.

Clubs are rightly being cautious over their spending, which makes sense on a business point of view. @ManUtd are losing £4m-£5m per year. Clubs are hoping to get fans...

back into stadiums by October. #mufc will hope to get about 20k fans in per game, which would still equate to a loss of £3m per game. So if you multiply that to about 20 games, it equates to £60m a year...

Usually when @ManUtd purchase players, they spread the costs over 3-4 years. In the 19/20 season, #mufc spent about £162m on players, with Maguires fee being paid all upfront , as Leicester weren'tplaying ball. & AWB £22.5m upfront & £22.5m recently to pay off the whole fee...

The problem is, the payments @ManUtd receive for transfers out, are being spread over a longer period, such as the Lukaku deal, which affects the money available to be spent.

Post SAF, #mufc have spent £1.2b on transfers. The way transfers are amortised, looking at net spend..

over a season is a rubbish way of looking at things. It is best to look at net spend over 5-6 years, it gives a rough feel of things. So post SAF, NET spend has been £900m. The revolving door of managers @ManUtd hasn't helped with ins & outs of players...

According to @KieranMaguire who has spent a lot of time working in Manchester, there is a lot of pride of how #mufc have done the right thing during the pandemic, as they are one of the biggest private sector employers in the city. Would fans rather #mufc save jobs of its...

employees or spend millions on signings/agent fees? Look at Arsenal who laid off a lot of their low level staff.

The revolving credit gives #mufc the option of £150m overdraft limit each year. This credit facility is reviewed each year...

This is similar to an overdraft limit people have on their own bank accounts.

Last year, @ManUtd had a cash balance of £308m in their bank. A significant amount of this balance has been reduced, mainly because #mufc have a) being paying off a lot of their recent transfers...

upfront & b) been paying off their installments of their previous transfers.

@ManUtd sponsors are proving to be gold dust. WestHam have lost their sleeve sponsors, S'mpton have lost their shirt sponsor & 5 championship clubs have no shirt sponsors...

These #mufc sponsors will allow the club to sign Sancho, however, the club will be cautious of spend majority of the fee upfront, which is understandable. Just as important will be to sell the fringe players @ManUtd to free up the wage bill&allow money to be added for transfers..

Is @ManUtd highly leveraged & is it a concern? NO. It's one thing having debt but the most important thing is, can #mufc make their debt payments? @ManUtd have interest only mortgages as such & the interest on these loans are much lower than they were when Glazers purchased...

#mufc Back then they had PIK loans of 14%, with it up to 16% at one point.

15 years later, #mufc are paying 1/4 of the interest each year, & the income has doubled over the same period...

These debts for #mufc will only become an issue when the repayment date come up & the banks ask for their money. However, generally banks are happy to role these loans over, as they're happy to receive £20m a year in interest payments...

But these £20m per year payments are quite insignificant, when compared to @ManUtd annual wage bill of around £300m a year.

The end.

Ps, credit to @Malachians for the great podcast with @KieranMaguire