February 3rd in Bailouts, Finance, Football by jason2009 .

Man U’s Financials Makes their Football Look Good

Club’s first bond issue branded worst performing bond this year…

Charles Tyrwhitt UK
 

Although the issue was not a total failure, they got the issue away, the criticism has come rolling in…

Jim O’Neill, a Goldman Sachs economist and Manchester United fan, declared his opposition to the issue over leverage concerns.

“There’s too much leverage going on with Manchester United,” O’Neill told Bloomberg.

And Jonathan Moore, high yield analyst at Evolution Securities, said: “There’s been almost no traditional investor support for this issue and the company only got it away by conducting a round the world investor roadshow to attract high net worth individuals and foreign funds…it’s been the worst launch of the past two years.”

The price of United’s £250 million sterling denominated bonds has tumbled to just 93 per cent of their original face value, while the value of the $425 million of dollar-denominated bonds has fallen to 94.5 per cent of their face value.

The Glazer family are believed to have run up around £700m in debt since their takeover of the club.

Only for the die hard investor.

  • Share/Bookmark

2 Comments

Leave A Comment.