14 Oct 2015 16:29:25
With all the news about the new kit deal and the new hat provider deal I am just a bit lost about where the club or glazers are with paying off the debt.
I know there have been several lines about restructuring of the debt, but is it being paid down with all the new improved income or are spending it?
I know you could say it's not our money so why worry but if the debt was gone and we still we're bringing the can all the better.
{Ed002's Note - The debt increased last year due to a loss of revenue from the Champions League, prize money, match day revenue, sponsorship and television money. However the increase in debt was less that what the revenue would have been so no one is concerned particularly - but there is some nervousness that the debt is now running at £400M and with the reduced income the spending will need to be curtailed - which it will be as the rebuilding is pretty much done (with an exception or two). The other concern relates to the rising wages - which are yet again well i breach of the FFP regulations.}
14 Oct 2015 17:55:48
Ed002
There was an article in one of the papers last year showing Pl team wages with united having the highest wage bill, with City being a close second and Chelsea not that far behind. Are you saying that our wage bill has risen from last year even though we have sold quite a few players and where can one find the info, is it accessible to the public?
If you don't mind me asking. Which other pl teams are in breach of FFP and are clubs like PSG, Madrid, Barca also in breach?
{Ed002's Note - Firstly it is nothing to do with Manchester City, Chelsea or anyone else. The £34M increase in wages last season (18.7% was beyond what is acceptable by some distance. Other clubs (like Manchester City) reduced their wage bill. Others (Chelsea, Liverpool and Arsenal) had modest increases beyond the FFP regs but acceptable. Manchester United were far worse than anyone - In terms of other EPL offenders it was only Hull, who were fined by UEFA. Across Europe there are many teams that have abused FFP regulations in one way or another and been punished - for last season:
Clubs banned from competition: Malaga, Gyori ETO, Parma, FK Ekranas, CFR 1907 Cluj, FC Astra Giurgiu, Bursaspor
Clubs sanctioned and fined: Manchester City, PSG, Zenit, Galatasaray, Monaco
Clubs fined: Levski Sofia, Hapoel Tel-Aviv, Hull, Panathinaikos, Ruch Chorzow, Dinamo Moscow, Roma, Inter Milan and Trabzonspor
Clubs currently warned and subject to on-going monitoring: Zenit, Rubin Kazan, Anzhi Makhachkala, Levski Sofia
Clubs currently subject to on-going monitoring: Besiktas (who were previously banned and have also paid a voluntary fine), Lyon, Liverpool (who were previously warned), Sparta Prague (who were previously warned), Wolfsburg
Clubs who settled by paying a voluntary fine to curtail on-going investigation: Sporting Lisbon, Rostov, Besiktas (who were previously warned), Krasnodar (who were previously warned), CSKA Sofia, Kardemir Karabukspor and Lokomotiv Moscow (who were previously warned).}
14 Oct 2015 18:18:13
Thanks for the response why are on earth are we not paying it off, I would pay off my mortgage if I could, surely it makes sense we are wasting huge chunks of cash every year servicing the debt which could be used elsewhere
{Ed002's Note - Because the club needed to do some rebuilding and the money went on players. The income was less because of the CL.}
14 Oct 2015 18:50:04
thanks ed002. If I am reading this correctly is our wage bill continuing to go up or have we reduced it with all the personal changes?
14 Oct 2015 18:50:04
thanks ed002. If I am reading this correctly is our wage bill continuing to go up or have we reduced it with all the personal changes?
{Ed002's Note - It went up significantly last season. Until the accounts are available we will not know for sure this year but I am told it is broadly the same.}
14 Oct 2015 18:57:23
coincidentally there is an interesting piece in the independent on city, united, chelsea and arsenal and some wage info. It will be interesting to see where we are come end of this football calendar year.
14 Oct 2015 19:06:57
I think it is worth adding the club undertook its 4th refinancing deal this year increasing the debt to over £400m with an extra £43m made available for the club to use. None of this debt requires repayment or refinancing for another 10 -12 years. Following the refinancing, the interest bill will fall from around £20m per annum to around £13m which is better for the club.
I think people know my thoughts on the owners and the debt but at least the annual cost is nowhere near as devastating as it was back in say 2008.