Is big really that beautiful?

EPL, FA Cup, Carling Cup, The Championship, etc

Is big really that beautiful?

Postby johntheclaret » Tue Jan 15, 2008 7:40 am

As reported here today, Manchester United are officially the second biggest club in world football after Real Madrid.

Published accounts today revealed that Old Trafford turned over a whopping £245m ($539m), and profits soared 93% to £59m ($132m).

However, whilst the Glaziers might be smiling at this, the interest on the loans they took out to buy the club in the first place amounts to £67m ($149m), this year alone, netting the club an £8m loss ($17.8m).

Now I ask you........ Is big really that beautiful?
johntheclaret
Coach
 
 
Posts: 13277
Joined: Mon Feb 26, 2007 2:39 am
Has liked: 409 times
Been liked: 580 times

Re: Is big really that beautiful?

Postby devilsadvocate » Tue Jan 15, 2008 8:30 am

johntheclaret wrote:Now I ask you........ Is big really that beautiful?


Great point there JTC.

Just like the thousands who buy a rental property for soooooo much that their monthly rental income doesn't cover their monthly interest costs.

Negative gearing or negative sense?
User avatar
devilsadvocate
Coach
 
Posts: 6872
Joined: Mon Aug 21, 2006 1:28 pm
Has liked: 3 times
Been liked: 0 time

Re: Is big really that beautiful?

Postby Scouser » Thu Jan 17, 2008 11:29 am

In response to the rental income comment, you would never expect to earn a higher yield from rental income than your interest expense (assuming you have a loan matching the value of the home). However, it's with capital gains that you will earn a return in the end, particularly with the Australian (home) property market rising so quickly as it is (although listed property trusts have done terribly).

So it doesn't really come into play here considering Glazer seems to want to own Man U for some time yet. I think he believes he'll be able to up revenue enough to cover his interest repayments (eventually).

But all in all, Man U are a bunch of....
User avatar
Scouser
Member
 
 
Posts: 94
Joined: Fri Dec 21, 2007 11:39 am
Has liked: 0 time
Been liked: 1 time

Re: Is big really that beautiful?

Postby dinglinga » Thu Jan 17, 2008 9:45 pm

speaking of liverpool apprently therir owners are need to refinace to pay the remainder they owe to the club
dinglinga
League - Best 21
 
 
Posts: 1508
Joined: Fri Nov 18, 2005 5:09 pm
Has liked: 0 time
Been liked: 0 time
Grassroots Team: Salisbury

Re: Is big really that beautiful?

Postby johntheclaret » Wed Jan 23, 2008 9:53 am

Sorry scouser, don't agree. We have a second house that we rent for £650 per month and have a mortgage of £312 per month. Dunno about Oz, but Buy to Let is big business up here.
johntheclaret
Coach
 
 
Posts: 13277
Joined: Mon Feb 26, 2007 2:39 am
Has liked: 409 times
Been liked: 580 times

Re: Is big really that beautiful?

Postby Dirko » Wed Jan 23, 2008 9:56 am

capitalist...



:wink:
The joy of being on the hill drinking beer cannot be understated
User avatar
Dirko
Coach
 
 
Posts: 11456
Joined: Sat Jul 29, 2006 7:17 pm
Location: Snouts Hill
Has liked: 6 times
Been liked: 2 times
Grassroots Team: SMOSH West Lakes


Board index   Other Sports  Soccer  English Soccer

Who is online

Users browsing this forum: No registered users and 1 guest

Around the place

Competitions   SANFL Official Site | Country Footy SA | Southern Football League | VFL Footy
Club Forums   Snouts Louts | The Roost | Redlegs Forum |