INEOS makes around 2.5b per year so servicing and paying off an 8b debt isn't that difficult if they wished to. Furthermore United can afford to service its own debt and spend 150m on transfers every season especially if they have the right coaching and recruitment set up that can guarantee CL football every year.
If Ineos want capital appreciation then they have to invest in infrastructure and playing staff, there is no way around it. The fact of the matter is that United wouldn't need to spend +250m every season, maybe every other 3rd or fourth season. Realistically speaking, if we spend 250m on Osimhen, Caicedo and Costa what would we need in 24 that would be so expensive beyond a few bench players?
Interest on the 3b acquisition debt INEOS would have to take will be in the 150m range, which will also lower their tax burden. After this summer United would never need additional support for transfer spending and the figure they would need is probably less than 150m.
They can afford the takeover, it's in their interests to get United competing and reestablished at the top table of the English and European game. City recently sold 10% of their stake for $500m, the Glazers are looking for a billion plus for a minority stake and so are PSG. There is money to be made but it's only there if you invest. The Glazers failed because of misdirected investments under an incompetent CEO, not because of debt.
This is a solid post, the current actual debt of Man united can be broken down into three categories;
1.
Historical debt used as a leveraged buy out which is now approx £536m$(650m)
I use approx because it fluctuates with the exchange rate, but this has increased from the original amount nearly 19 years ago due to gross negligence and greed from the Glazers taking out annual dividends which could have been used to pay off the debt. With low interest rates this debt was serviceable but not now.
2.
Transfer Amortised Payments debt slightly different as this is not equated in FFP but may soon be added I’m sure to the new Financial Sustainability rules where only 70% of your turnover can be spent on wages, agent fees and new net transfers sales will be the new rules by 2025/26 season. This debt is said to be £227m, but let’s be clear nearly all clubs have this type of debt as most transfers are amortised. This does not need to be cleared as a new owner will just continue to service the payments to other clubs.
3.
Credit Card Facility debt - This is a credit line agreed with the bank and currently the club has £300m limit but spent £207m of that limit mostly on transfers last year.
Part of their sales pitch to prospective buyers is that Debt would be cleared by the end of June through gate receipts, PL payments and merchandising sales, clearing a smooth transition path for a new owner to use this facility for summer transfers and whilst giving them time to sign the correct change of ownership details and pass all the necessary ownership fit and proper tests from Uefa and the PL.
Sheikh Jasim and the now confirmed full Qatar state bid would simply have paid the £535m debt instantly closed down the existing banking facilities and put their own in place, this still would have probably taken 2-3 months and gave them very little time now to operate in the transfer window, almost similar to when Abu Dhabi bought City hat first window, they may have used existing banking but no guarantee as they have been singular in their ideas, buy 69% take full control, pay off the debt, spend £400m on marquee players, then buy the existing 31% of the club, build super stadium and training ground, highly unlikely they would use existing banking because it involves interest payments and that concept is aboded in their culture.
The more favourable deal to Joel and Avram is to sell maybe 3% each of their b shares with the other 4 siblings selling all 45% of their shares to SJR through Ineos.
The company would be restructured with no more B shares and they would get 20% or 32.6m of the new company which is listed on the NYSE with SJR/Ineos owning 83 million of the 163 million shares and controlling rights. The agreed premium would still be available year 1 for both Glazers but diminishes slightly in year 2 so SJR could effectively buy an additional 20% of the company in 2024 or 2025 or they could keep their shares and hope through success on the field the shares go up to $30/35 per share through ineos investment and management.
Highly unlikely it’s a smart play from SJR, he’s outmanoeuvred SJ and the Qatar hate to lose, expect them to bid on another PL club soon however now that the state has been confirmed the PL might not allow it but probably can’t stop it.
SJR could move much quicker in the transfer window because if this model because he will unfortunately be working in the short term with Malcolm and Joel and probably Arnold and Murtourgh, he might say I need a huge transfer window and become hands on, listening to him earlier in his interviews he seems to me like he could be a throwback to Blackburns Jack Walker and united is his love so it’s win at all costs, we’ll see but whoever wins SJ or more likely now SJR will spend big this summer.
