It was clear to a fair few of United fans that we needed a sugar daddy to bail the club out of the financial mess the Glazers have put us in, and rejuvenate the club, local area and people associated with it……..
There will be no sugar daddy, just chucking away £££billions on buying Utd, especially at the valuation that the Glazers and their advisors have put on the cost of a take over.
To pay off the debt will mean throwing away a massive amount of money that can never be recovered, so it would need a mega wealthy oil state, prepared to write off the total cost of a take over.
The fake sheik wasn’t that fairy godmother and there were no other sugar daddies on the horizon either.
The only other interested parties, were investment consortia types, non of who would be prepared to write off an investment of that scale and non who could get near the Glazer’s asking price.
If Utd is sold to another owner, or owner group, other than INEOS, then it will be bought as an investment.
They will want to see a return on their investment, i.e. take dividends and a share of any profit.
Nobody, but nobody is just going to put £££billions into a purchase, for no benefit
That money will also have to raised from somewhere, most of which is likely to be in the form of loans (i.e. debt).
With the valuation the Glazers put on the club, there’s little likelihood of a new owner being able to raise the value and selling it on at a later date, at a profit over the purchase price, especially if they had to pay off the debt.
So if there was to be another actor interested in making a bid, they’ll be looking at short to medium term returns and refinancing the existing debt, on top of their own borrowing costs.
With the current state of the business, that’s not going to happen !
………Instead, in the name of "improvement and performance", we are being moulded into what INEOS are - a cold, soulless MNC.
The Glazers and INEOS epitomise perfectly the ugly, extractive and exploitative side of western capitalism.
I would certainly not put INEOS/SJR in the same category as the Glazers.
Nobody forced SJR to spend $1.25 billion to buy shares off the leeches.
( ….do you think he’s happy seeing them pocket such a vast amount of his companies money?)
He’s gone on to put in another £235m to cover operational and other costs, just to keep the club afloat.
It’s going to cost him a lot more.
Far from taking out, his company have taken a big risk and splashed out a vast fortune to get their 28% share, with no guarantees that they’ll ever get their money back.
The immediate task for Utd ( it’s Utd management under Berrada doing this, not INEOS Sport), is trying to stem the loss making and bleeding of cash.
Next season will see a big loss in income from reduced sponsorship payments and reduced PL and TV payments due to our expected poor league finishing position.
Costs are going up for all businesses across the board. Utd will be just as affected by this.
Increased NI costs being just one of several increases in outgoings.
Add on the outstanding payments due on players already with the club.
Hence cost cutting right across the company.
Not good for the employees affected, but that’s the cold hard reality of life.
If they could just make the players that they intend to offload, redundant, they would, but that’s not possible.
If Utd don’t get a grip on costs, the future is much bleaker than most fans would care to contemplate.
Unfortunately, the Glazers don’t have to sell and I suspect they’ll keep hold of their majority ownership as long as it takes to squeeze top dollar out of SJR or any new bidder.
If his people can turn our financial fortunes around, the Glazers can just sit back and reap the rewards again, but I don’t believe for one minute Sir Jim is here to allow that.
He will be working on some sort of leverage, where he can eventually gain majority or overall control.
It will take time, but it’s the only hope Utd have at the moment.
Alternatives (sugar dad due, fairy godmothers etc,) are just fantasy.
.