Has anybody told us the Glazers will invest this money into the club? It’s like we’re pretending we don’t know who the Glazers are at this stage.
Either they’re cashing out or not. Selling equity could just be another way to cash out
Club Sale | It’s done!
- Thread starter JB08
- Start date
- Status
Either they’re cashing out or not. Selling equity could just be another way to cash out
Wasn’t there a whole discussion about this like a month ago?
4 of 6 siblings want out, so if they sell their portion they want their cash and to walk away, so no money goes into the club.
Let’s say the other 2 decide to stay, from where are the funds coming to continue operating the club and make the required investments in the squad and infrastructure?
If Joel and Avram were to take on minority investment from Elliott or whoever it would be in the form of debt. If we know anything it’s that the Glazers don’t put debt in their own names.
There’s no fairytale solution here where they retain their holding and generate funds for the (unequivocally necessary) ongoing investment without massive and expensive debt.
I'm not even going to attempt to go into what is wrong with that first sentence and post
you seriously need to have a look at Utd's finances.This is true, with a new stadium United instantly become more valuable, say Elliot buy a 25% stake and provide $2 billion in funding, in 10 years time that stake will be worth probably twice as much and they will also have their share of the profits from dividends, I don't think that's what will happen but it can't be discounted totally
So someone is going to give the Glazers billions of pounds of finance and it will just go in their pockets?
Its seems you’re being very dramatic without actually thinking this through.
Minority investment is equity funding, the investor purchases a minority stake (less than 50%) in exchange for capital which is made available immediately. The primary objective of minority funding is to increase growth of the business. They would essentially provide funding to the Glazers to execute their plans for growth i.e. stadium redevelopment etc.
As an investment for Elliott - they would take preference as a creditor in the event of liquidation/eventual sale of the club further down the line. So if the Glazers eventually sell in 5-10 years - Elliott would get whatever stipulation of return on their investment.
And how does this work in terms of United currently and the situation the club is in? And with the rest of the family?
It would mean, as I’ve said, the Glazers totally changing their MO and investing money in to the club. They haven’t done this in 18 years.
You think this is more likely?
If they’re buying shares then why not? Is it not free for the Glazers to do with as they please?
4 siblings want out, explain which sibling will sell shares then give it to the club for investment.
Why do you think the Glazers are acting as a block? Where the logic in this?
Good one. Really got me there
See this is where we need someone to post a GIF of someone banging their head against a brick wall
The investors would be doing the investing.
That's the (pretty accurate) explanation that was requested. Not sure @TheReligion actually wanted to hear it though.See this is where we need someone to post a GIF of someone banging their head against a brick wall
I’m not as well up on these things as others here but it’s clear you need to do some reading on this as you don’t have a scooby how these things work.
Investing for the Glazers, who haven't invested in the club and will need to pay back the investors for their investment, therefore investing their own money in the investors doing the investing?
Nobody with that sort of capital would trust the Glazers to grow the club. They couldn't be that silly with their money.
Ah yes, the twitter scrolling extraordinaire who's every reply to a question is "that's a good question"
I know..
They can make it part of the deal, like Roman did with Chelsea, they can specify that the money must be used a certain way
You should read his post again. He explained it in perfect detail and he's done loads of analysing to get to his iron-clad conclusions.
I better not, I've barely recovered from the first reading
Simon Jordan speaks a lot of sense imo
Do you want to help out with the explanation on how feasible partial/minority investment is to the Glazers?
Several posters here are ‘certain’ that’s what will happen but are falling to explain how it would be possible, or likely, over a full sale.
Michael Knighton is in.... he is the fourth man (in his dream)
The worst part is that these guys always have been walking around thinking they are Santa 2.0 for every penny — they have not taken out of the club.
Get the feeling that a lot of posters around here are underestimating how the Glazers operate. I genuinely think a sale will happen in the end, but don't be naive and think they are entering this whole process in good faith.
They would still be depending that the Glazers get things right on the pitch. A couple of billion bet that the Glazers will finally get it right would be insanity.
From our perspective, as fans we don't like it obviously and to us it looks like a failure, the Glazer's and Elliot are business people, in those worlds the Glazer's got it right - right from the start, they've turned a minimal investment in to something worth billions and a potential to be worth even more billions
There does seem to be a thrust into the offer from Elliott. I am becoming pessimistic that the full sales is going to go through.
I do think posters have underestimated the world of banking and financing and I do believe the Glazers could find a way to get the cash injection they require to unfortunately remain at the club.
I really hope I am wrong because I feel this club needs a change at the very top.
We have seen some positives on the pitch but that could be eradicated if the ownership continue to make mistakes.
This club needs to be debt free and have the shackles of the Glazers. I am not near as optimistic as I was though!
I do think posters have underestimated the world of banking and financing and I do believe the Glazers could find a way to get the cash injection they require to unfortunately remain at the club.
I really hope I am wrong because I feel this club needs a change at the very top.
We have seen some positives on the pitch but that could be eradicated if the ownership continue to make mistakes.
This club needs to be debt free and have the shackles of the Glazers. I am not near as optimistic as I was though!
That's exactly what someone undertaking a publicity stunt would say. Just like that clown the Knight Rider the other month pretending he was heading up a consortium.
Oh, here we go, another one.
Talks about people underestimating the world of finance (whatever the hell that means) and then provides zero and I mean zero explanation or suggestion how this supposed coup would work.
Ultimately we are dealing with humans, so it’s impossible to know for sure what the Glazers will do.
But I think that a minority investment is very unlikely. Simply because financially, I just don’t see the upside for the Glazers.
Let’s say that they can get (a) 5bn now or (b) collect 2bn in investment so that they can sell the club for 10bn in 5 years.
When you break this down, it’s just not a very attractive scenario. Whomever puts in 2bn now would want 3bn back in 5 years. Of the 5bn increase, that leaves 2bn profit for the Glazers. A 2bn profit isn’t bad, or?
I mean if you have 5bn, to make a 2bn profit over 5 years it only takes a 7% YTY return. You can get a 7% yearly return more or less risk free right now. On the stock market, it’s not much at all (albeit the risks are higher).
So to summarize:
(a) Best case, they get a 7% yearly return
(b) Worst case, they get 5-6bn in 5 years, and have pissed away 3bn to the investor
That is not good enough.
It's the "it's much more complicated than that" argument. Saying that or words to that effect means you win the debate because the other person cannot understand it, even when they are saying absolute gibberish.
- Status