There's one line in the prospectus which says: Doesn't quite say they're finding it difficult to pay salaries, but it is an alarming admission nonetheless.
Personally I saw that more as them saying they were finding it hard to compete with the other top clubs on salary rather than 'Rooney may not get paid this month'.
Hi first time post. So please forgive the techy answer. There is a legit tax dodge at work. Say Manure make £50m before UK Corp Tax at 28% Tax bill is £14m. Glazers borrow £400m at say 5% £20m pa to buy Manure. On buying Manure they arrange another mortgage based on Manure assets but the mortgage is held abroad (in Cayman's) but the proceeds are used to repay the first mortgage. The loan shown in Manure UK is £400m at say 12.5% i.e. £50m due to Manure Caymans Ltd. Now Uk taxable profits are nil saving £14m. Interest on loan in excess of "real" mortgage interest repayable is taxed in Cayman's at very low rate. Net cash outlay for acquisition of club: Nil
If the "Fit and Proper Person" vetting worked there would be no Glaziers, no Whyte, Hicks and Gillette, Carson Young et al or ....... where do we start with pimpey. We might not still be the "best league in the world" but would Kevin Keegan have signed for us under current financial rules?
You see, I don't think it will burst all that quickly. It would take the TV deal to disappear for that to happen, and I just don't see that. Especially considering it's just been basically doubled.
Man U are a huge global brand and can afford to pay the ludicrous wages they do. Man U have 2 problems. 1) The Glazers bought them with money that didn't exist. If they ever do get into trouble though, some filthy rich arabs will see their worldwide appeal. 2) More likely to hit them hard is what they do when Fergie leaves. If he leaves and things start going tits up, they'll beg him back and it could quite literally be a job for life. He can't carry on forever though and he'll be a very tough act to follow.
