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Man Utd Borrowed £60 Million Due To Covid 12:54 - Mar 5 with 1344 viewsSaintNick

Everyone slagging off Saints for borrowing money should read this

https://www.bbc.co.uk/sport/football/56286833?at_campaign=64&at_custom1=%5Bp

This post has been edited by an administrator

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Man Utd Borrowed £60 Million Due To Covid on 15:03 - Mar 5 with 1238 viewsButty101

What’s your point?

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Man Utd Borrowed £60 Million Due To Covid on 15:44 - Mar 5 with 1212 viewssaints__fan__73

So a club with a far higher wage bill than us borrowed a lot less than us? Was the interest rate they got as ludicrously high as ours?

"Playing Devil's Advocate since 15th January 2014"
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Man Utd Borrowed £60 Million Due To Covid on 15:46 - Mar 5 with 1211 viewsKennington

That’s the same Man Utd that is £455m in debt and also much like us has owners that talk about that buzz word “sustainability”, which is a euphemism for just avoiding bankruptcy by making the repayments to whatever loan company needing to be paid. Unlike us though Man U have much more head room for huge debt, and are still able to fork out for players like De Beek for £35m who barely play. On the other hand we have huge debt and can just about afford the odd loan or two for Walcott and an occasional punt like Salisu.

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Man Utd Borrowed £60 Million Due To Covid on 15:47 - Mar 5 with 1210 viewssaints__fan__73

p.s. as ever Nick's point is that Nasty Cortese once banned Nick from having a season ticket so the people who got rid of him bought Nick's undying loyalty.

They could literally execute every 3rd fan coming into the stadium and Nick would do a piece on here about how the owners are doing well keeping the queues for half-time beers down.

"Playing Devil's Advocate since 15th January 2014"
Poll: Have the events of the Summer made Nick feel closer to LFC?

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Man Utd Borrowed £60 Million Due To Covid on 22:33 - Mar 5 with 1066 viewsDorsetIan

Man Utd Borrowed £60 Million Due To Covid on 15:03 - Mar 5 by Butty101

What’s your point?


Exactly. What is the point of this post??

Recently we were told that securing the debt against the ground and the training ground did not put us at risk.

Is the implication here that we also don’t need to worry at having to borrow at >9% because Utd (a club with a massively higher turnover than us and at absolutely zero risk of relegation) have also called on their loan facility (which, incidentally, seems to be at a smaller significantly lower interest rate and which they originally arranged to finance transfer spending)?

It’s not the loan that’s the issue, it’s the interest rate that we are forced to pay because of the risk we pose to any lender.

Sustainable business model, my arse.

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Man Utd Borrowed £60 Million Due To Covid on 02:10 - Mar 6 with 1021 viewsButty101

Man Utd Borrowed £60 Million Due To Covid on 22:33 - Mar 5 by DorsetIan

Exactly. What is the point of this post??

Recently we were told that securing the debt against the ground and the training ground did not put us at risk.

Is the implication here that we also don’t need to worry at having to borrow at >9% because Utd (a club with a massively higher turnover than us and at absolutely zero risk of relegation) have also called on their loan facility (which, incidentally, seems to be at a smaller significantly lower interest rate and which they originally arranged to finance transfer spending)?

It’s not the loan that’s the issue, it’s the interest rate that we are forced to pay because of the risk we pose to any lender.

Sustainable business model, my arse.


And it’s well documented that ManU have terrible ownership. The only reason they are so heavily in debt, was because the purchase cost was put back on the club. The club pay ridiculous amounts of interest every year to pay that debt.

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Man Utd Borrowed £60 Million Due To Covid on 10:23 - Mar 7 with 804 viewsSaintNick

Man Utd Borrowed £60 Million Due To Covid on 22:33 - Mar 5 by DorsetIan

Exactly. What is the point of this post??

Recently we were told that securing the debt against the ground and the training ground did not put us at risk.

Is the implication here that we also don’t need to worry at having to borrow at >9% because Utd (a club with a massively higher turnover than us and at absolutely zero risk of relegation) have also called on their loan facility (which, incidentally, seems to be at a smaller significantly lower interest rate and which they originally arranged to finance transfer spending)?

It’s not the loan that’s the issue, it’s the interest rate that we are forced to pay because of the risk we pose to any lender.

Sustainable business model, my arse.


The point was that we are not the only club doing this, initiall we put the loan facility in place before the pandemic to fund january transfers, it was restructured in June

The interest payments seem to have been estimated and blown up by Hampshire Live who are based in Portsmouth and seem to relish in putting out negative news about Saints.

The club have usually used a loan facility and in 2019 paid £.1 million in interest repayments reducing slightly in 2020 accounts.

Given the current situation it is perhaps natural this amount should double as we like most clubs including Man Utd have to borrow, I'm still not sure where the actual interest rate information is coming from.

The point about Manchester United is that it shows all clubs are in the same boat at the moment they have lost a massive amount of income they are having to borrow to stay afloat.

It is perhaps worrying for football that United have to borrow £60 million, they of all clubs should have more income than the rest and owners who have money.

If you borrow sums of this nature you have to secure them against assets, United are a lesser risk than Saints so you are right they will get a lower interest rate.

You are again correct it is not a sustainable business model, but the reason for that is that we cannot have a sustainable business model until we are back to normal again, no club can, so it is fine to be glib and throw in the "My Arse" quote, but what is the alternative ?

You tell me what the club could have done differently, yes they could have flogged Danny Ings, that is if any club has the money to actually buy him, which as the January transfer window proved most don't

Hopefully next season when crowds are back we can return to a sustainable business plan, but it will be hampered by interest payments, but 99% of clubs are in the same boat

Satisfying The Bloodlust Of The Masses In Peacetime

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Man Utd Borrowed £60 Million Due To Covid on 20:06 - Mar 7 with 749 viewsDorsetIan

Man Utd Borrowed £60 Million Due To Covid on 10:23 - Mar 7 by SaintNick

The point was that we are not the only club doing this, initiall we put the loan facility in place before the pandemic to fund january transfers, it was restructured in June

The interest payments seem to have been estimated and blown up by Hampshire Live who are based in Portsmouth and seem to relish in putting out negative news about Saints.

The club have usually used a loan facility and in 2019 paid £.1 million in interest repayments reducing slightly in 2020 accounts.

Given the current situation it is perhaps natural this amount should double as we like most clubs including Man Utd have to borrow, I'm still not sure where the actual interest rate information is coming from.

The point about Manchester United is that it shows all clubs are in the same boat at the moment they have lost a massive amount of income they are having to borrow to stay afloat.

It is perhaps worrying for football that United have to borrow £60 million, they of all clubs should have more income than the rest and owners who have money.

If you borrow sums of this nature you have to secure them against assets, United are a lesser risk than Saints so you are right they will get a lower interest rate.

You are again correct it is not a sustainable business model, but the reason for that is that we cannot have a sustainable business model until we are back to normal again, no club can, so it is fine to be glib and throw in the "My Arse" quote, but what is the alternative ?

You tell me what the club could have done differently, yes they could have flogged Danny Ings, that is if any club has the money to actually buy him, which as the January transfer window proved most don't

Hopefully next season when crowds are back we can return to a sustainable business plan, but it will be hampered by interest payments, but 99% of clubs are in the same boat


I am not sure why you say that the interest payments are estimated, the Club's 2020 accounts refer to a bank loan at £78.8m at 9.14% (see note 20 to the accounts).

While we have owners who can't or won't support the club financially (even in terms of making loans at more reasonable rates themselves) then you are right, what else is the club to do but borrow at ridiculous rates. The directors have a duty to ensure that the club is a going concern, so need go get cash from somewhere.

But this is precisely my point, the situation regarding our ownership has forced us into this position.

Poll: Should we try to replace Selles for the final seven games?

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