Glazer sits on $2.4billion as Manchester United's future lies on the brink

According to the Forbes rich list that was released only yesterday, Manchester United owners “Malcolm Glazer and Family” have a net worth of $2.4billion and lie in joint 400th place as the World’s richest, having built an empire through sports teams and real estate.

With Manchester United laden with debt brought on by the purchase of Manchester United, fans will be furious that whilst a Manchester United owner sits on $2.4billion, the Old Trafford club have to face debts up to a reported £700m.

Fans of Manchester United have already vented their anger on the Glazer family by wearing the green and gold although it does look to have declined a little this season. Revelations that the United owners have so much in their bank though is likely to raise tensions once again.

Manchester United have enjoyed a good start to the season currently lying in third, but fans cannot help thinking where they could be had the Manchester club no debts to pay off. There is also a lot of anger regarding part of the £80m received from the Cristiano Ronaldo sale to Real Madrid just disappeared amidst accusations that the Glazer family had withdrawn some to pay off the heavy interest due on the debts.

Although their net worth currently stands at $2.4billion many will be wondering if this money can be got at and if so, will it be used to pay towards the huge increasing debt at the club, or as something to fall back on should the Glazer’s have to pull out of a club facing increasing financial difficulties.

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7 comments to Glazer sits on $2.4billion as Manchester United's future lies on the brink

  • Kev

    ““Malcolm Glazer and Family” have a net worth of $2.4billion”

    Meaning if they SOLD every asset they have, then thier worth would be $2.4 Billion. Now, think that UTD could be sold for $1.5 Billion, minus the $700K dept, thats $800k profit of a total of £2.4b.

    We all know the Glasiers other markets are currently strugling, with dept and interest payments that thier profit margins are unable to meet, so more borrowing is happening against value of the equity which they hold.

    This basically means that with Tampa Bay Bucks and all of the real estate they own, total NET worth is $1.6b after dept. This isnt money that the Glasiers can use to “Pay off” Utd’s dept, as Utd’s dept is part of the figure. They wouldn’t be worth any more, or less, if they did sell another asset to pay off Utd’s dept.

    What people need to realise, is that whilst the Glasiers have a net worth of more than $0, effectivelly they are using Utd as part of a greater bussiness plan, and the dept against it is probably less valuable that the dept of which they would take against one of thier more “Risky” assets IE the profit margins in a shopping mall. They are clever bussiness men, not fools.

    Utd till I die, with or without the Glasiers, long let the success continue.

  • dave eckles

    That $2.4billion valuation will include Manchester united who are valued at. GBP 1.2 billion (approx $2billion?) And their NFL team and their shopping mall business (I’m unsure on exact values of these businesses, but I would imagine $400 million would be about right), so far from this showing they have money to burn, it shows all their money is tied up in busibesses, all of which are in debt.

    Luhg

  • ChrisW

    This article doesn’t make any sense. How are Manchester United “on the brink” or “facing increasing financial difficulties”?

    If the $2.4bn (£1.5bn) figure is correct then the Glazers’s assets add up to £1.5bn more than their debts. So they are very far from going broke whatever the doom mongers claim. The club isn’t going broke either – it has lots of money in the bank and is profitable even after interest payments.

  • United Rant

    This article is completely inaccurate as is the Forbes analysis it is based on. The Forbes calculation fails to take into significant sums of debt or Forbes’ own calculation of enterprise value it has previously assigned to Manchester and the Bucs.

    I could go on but there’s a really good lay description of just how wrong Forbes is (about $1bn out) here:
    http://andersred.blogspot.com/2010/09/glazers-and-rich-list-why-forbes-cant.html

    More to the point when you make statements such as “they’re sitting on $2.4bn” you give a very wrong impression of the actual cash position the Glazers are in. Their net position is about $1.6bn – their cash position is awful.

    You suggest that the “money could be got at” – well yes, but only if the Glazers sell their assets and believe me about 99% of United fans would be delighted if they sold United.

    Really, you should correct your article as its misleading.

  • [...] of Liverpool and Manchester United – two of the biggest teams in the world – have been lambasted (for good reason) because the debt they took on to purchase the teams is overwhelming their books. [...]

  • james thain

    $2.4billion is not that much these days. In fact not enough to sheikh a stick at. I am delighted to hear Sir Malcolm’s finances are improving. The longer he mismanages Man Ure the better. Three years of zero net team investment has already had a big impact. In fact the only winners have been Norwich’s club superstore. I believe they have sold out of scarves. I guess when a club allows the stock market to control their finances, folloewd by some dodgy racehorse types; karma will eventually shows itself. I suppose the fans can console themselves with the success of their other team FC United…yes you can support two teams now and wait to see who does best.

  • [...] of Liverpool and Manchester United – two of the biggest teams in the world – have been lambasted (for good reason) because the debt they took on to purchase the teams is overwhelming their books. [...]

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