How much are we worth?

[sufcintheprem]

This seems to have been a massive shock to football fans but re-structuring a club to increase the level of debt might well be the way to optimise return on investments. If you get a loan where you have to repay 5% a year, why would you keep the majority of your funding as equity where you're paying out 8% per year of your profits to shareholders.

You wouldn't leave it like that, you would take debt until you have a more favourable debt/equity ratio.

Also, it's not fair to single out United when Real Madrid genuinely have pushed the boundaries of debt to their limits...

 

[Maldon Blues]

Until we get our new Stadium we are worth the grand total of NOTHING!

 

[Andy_Shrimp]

Also, it's not fair to single out United when Real Madrid genuinely have pushed the boundaries of debt to their limits...[/QUOTE]

I wasn't necessarily singling out United, I was using it as an example

 

[Spaceman Spiff]

I am led to believe that Deloitte who compile the figure base the values on assets and income and no element of debt in taken in to account. As if this was the case Man Ure would be there!!!

As I said, it has nothing to do with assets!! The 'rich list' is purely a revenue figure.

 

[sufcintheprem]

Also, it's not fair to single out United when Real Madrid genuinely have pushed the boundaries of debt to their limits...

I wasn't necessarily singling out United, I was using it as an example

Without wanting to split hairs, by mentioning only United, you were rather singling them out.

Anyway, that's neither here nor there. If Man Utd had pulled off some of the stunts that Real Madrid had in recent times (I'm thinking traininggroundgate), there would have been uproar here.

I honestly would put some value on our club. Not many football teams go out of business because their customer bases are incredibly loyal. From our perspective, we have been managed very prudently in recent years and have tended to buy younger players instead of older players. I suppose the pivotal question is whether or not Eastwood's sale would be able to give us funds to adjust our debt position.