Skip to content

Glazers’ Manchester United losing money at a higher rate

Manchester United v Galatasaray - UEFA Champions League Getty Images

On the surface, this story doesn’t have anything to do with the NFL, but it could have an impact on one team.

Manchester United, owned by the Glazer family that owns the Buccaneers, just posted a much bigger net loss in financial records from the fiscal fourth quarter, according to the Associated Press.

Citing uncharacteristic early exits in the group stage of the Champions League and the English FA Cup (to which the non-soccer crowd reads as “blah blah blah blah blah”), Man U lost $24.2 million in the fourth quarter. Over the same span last year, the team lost $570,000.

The report was the first since the team’s disappointing start on the New York Stock Exchange. While they were hoping to sell shares between $16 and $20 a share, it opened at $14, and shares were trading at $12.72 Tuesday morning.

Man U is saddled with debt (hence the IPO), and revenues are declining, at least until a new sponsorship deal with General Motors kicks in in two years.

Meanwhile, the guys that own the prestigous soccer team have an American football team that can’t sell enough tickets to prevent blackouts at a reduced percentage, even after splashing $141 million worth of contracts on three players (Vincent Jackson, Carl Nicks, Eric Wright) in free agency. Meanwhile, the Bucs were carrying more than $13 million worth of salary cap room earlier this month, seventh-most in the league.

It doesn’t take an economist to realize it’s not a healthy mix.

Permalink 21 Comments Feed for comments Latest Stories in: Home, Rumor Mill, Tampa Bay Buccaneers
21 Responses to “Glazers’ Manchester United losing money at a higher rate”
  1. realnflmaster says: Sep 19, 2012 6:49 PM

    Move the team to LA.

  2. mikealstott says: Sep 19, 2012 6:55 PM

    hmmmm…

    Question: how much value would the Glazers add to their NFL franchise by moving the team to LA?

    How much did the Dodgers sell for?

  3. nyyjetsknicks says: Sep 19, 2012 6:56 PM

    Did the team gain value? I always read teams are “losing money”, but teams are selling at record numbers, i.e. the Dodgers.

  4. jimnaizeeum says: Sep 19, 2012 7:08 PM

    It’s soccer dude…

  5. mazblast says: Sep 19, 2012 7:13 PM

    No sports team has ever made money, just like no movie or TV show has ever made money.

    I’m an accountant. While our profession is mostly technique, ther’s an element of art to it, also. If we drop our ethical standards low enough, we can make all kinds of nonsense look real. Fortunately for my peace of mind and unfortunately for my finances, I won’t drop my ethics quite that low.

    “What’s two plus two?”
    “What do you want it to be?”

  6. irishnativeson says: Sep 19, 2012 7:15 PM

    Bloody Hell… The situation as well as being a Buc’s fan after last weeks collapse.

  7. natelan69 says: Sep 19, 2012 7:16 PM

    This isn’t improving UK/US relations… I bet the local fans despise this guy.

  8. canadianvikingfaniii says: Sep 19, 2012 7:23 PM

    Which is interesting because for the past many seasons, ManU has been at the top of the 1st division club league. And has a huge global following like other clubs. Which tells me that the majority of futbol fans are bandwagon jumpers when it comes to UEFA tournaments and all jump ship to Barcalona or Real Madrid.

  9. kbballard says: Sep 19, 2012 7:37 PM

    The more I read this article, the more I realized how much of a swing and miss it was. And then I saw Gantt wrote it.

    My biggest problem is here: “Citing uncharacteristic early exits in the group stage of the Champions League and the English FA Cup (to which the non-soccer crowd reads as “blah blah blah blah blah”), Man U lost $24.2 million in the fourth quarter.”

    If you’re uninformed, you shouldn’t be writing this article. I know “debt” is a sexy word right for the pundits, but don’t buy Gantt’s BS. Throwing links on a page and rehashing the article headlines doesn’t count as analysis.

    So keep it up, Gantt — meet that quota Florio sets for you as fast as you can.

    Now if the NFL could only adopt the transfer system…

  10. NoHomeTeam says: Sep 19, 2012 7:53 PM

    What’s the lease look like at Pirate Ship Stadium?

  11. mikeinfected says: Sep 19, 2012 7:55 PM

    realnflmaster says:
    Sep 19, 2012 6:49 PM
    Move the team to LA.

    That made me laugh (out loud too)

  12. mikeinfected says: Sep 19, 2012 7:56 PM

    …oh you meant the Bucs…gotcha.

  13. qwerty007qwerty007 says: Sep 19, 2012 7:58 PM

    What you fail to mention is that most of the debt is the loan that the Glazers took out against Man U to finance their purchase of the club.

    Man U was financially healthy and debt free until Magnier and McManus sold out to the Glazers. The Glazers then turned around and financed their purchase against the assets of the club.

    They then floated the shares on the stock market, pocketing half of the proceeds and putting the other half against the debt they saddled the club with.

    Just more rich guys lining their pockets with money from the fans …

  14. realfann says: Sep 19, 2012 8:22 PM

    @qwerty is correct:

    Man U is the most valuable sports franchise in the world and operates at a very healthy profit. It’s debt is the scumbag Galzers borrowing money to buy something they couldn’t afford.

    And yes, this writer needs to fire himself.

  15. nomoreseasontix says: Sep 19, 2012 8:33 PM

    Wrong football.
    The one we talk about isn’t round.
    And the players don’t wear daisy dukes….

  16. rcali says: Sep 19, 2012 10:08 PM

    “Monday Night Soccer” is still around the corner for this country. Luckily I’ll be long gone.

  17. geo91 says: Sep 19, 2012 10:17 PM

    ManU spent somewhere around 30 million pounds this last transfer window on Kagawa, I don’t see how any of that could happen with these financial problems happening

  18. magicbucs says: Sep 19, 2012 11:56 PM

    Bucs aren’t moving to LA. They will move to Orlando before LA. LA is getting the chargers.

  19. darkflynt says: Sep 20, 2012 1:07 AM

    I’m tired of people saying the bucs will move Here or There. There is a contract. One so big you can’t just buy out. Tax payers in hillsborough county paid for that stadium with the condition the bucs stay. Shut up if you don’t know what you are talking about. That contract is good until 2025.

  20. alonestartexan says: Sep 20, 2012 7:14 AM

    magicbus, the NFL wants LA to have two teams, 1 in the AFC, and 1 in the NFC…

    Move the Bucs to Los Angeles and place them in the AFC West, move the Rams to the NFC South.

    Problem solved.

  21. footballer4ever says: Sep 24, 2012 10:55 PM

    kbballard
    “The more I read this article, the more I realized how much of a swing and miss it was. And then I saw Gantt wrote it.

    qwerty007qwerty007
    “What you fail to mention is that most of the debt is the loan that the Glazers took out against Man U to finance their purchase of the club”
    ——————————————————-
    What else can you expect from a NFL blogger to write about when it comes to football/Manchester United football? Just simply biased information otherwise it’d rub off the throwball fans the wrong way because it’ the ONLY football that matters WORLDWIDE anyways.

    Here’s the actual fair and balanced story on United’s debt:

    realfann
    Sep 19, 2012, 8:22 PM EDT
    “And yes, this writer needs to fire himself.”

    Wait! Was that Dolphin’s Jeff Ireland saying something in the background? Oh no! That was Gantt’s “Ireland-like” reaction after reading your post.

    moreseasontix
    Sep 19, 2012, 8:33 PM EDT
    Wrong football.
    “The one we talk about isn’t round.
    And the players don’t wear daisy dukes….”
    ——————————————————–
    That’s right, because the one you talk about is eggball shaped where the players wear tights and Always® pads for full comfort .

    rcali
    “Monday Night Soccer” is still around the corner for this country. Luckily I’ll be long gone.

    I hope that comes sooner than later. By the way, your first class ticket to go “down under” is ready for you. Enjoy the hot weather! (Evil laugh)

Leave a Reply

You must be logged in to leave a comment. Not a member? Register now!