Glazers’ Manchester United losing money at a higher rate

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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.

21 responses to “Glazers’ Manchester United losing money at a higher rate

  1. 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?

  2. 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?”

  3. 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.

  4. 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…

  5. 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 …

  6. @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.

  7. 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

  8. 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.

  9. 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.

  10. 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)

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