Comment: Glazers' cash boost is no big deal for Manchester United
Manchester United's latest signing Shinji Kagawa If the Glazers latest moneymaking scheme comes off it could make United $100m. Thats 64m, which to put it into context is 16m less than they generated from the sale of Cristiano Ronaldo to Real Madrid in 2009.
To put it further into context, it would reduce the clubs debts from 423.3m to 359.3m.
To borrow a frequently used term in their application to list the club on the New York Stock Exchange, Uniteds indebtedness remains astronomical.
Frankly 64m is a drop in the ocean that is still likely to see Sir Alex Ferguson forced to punch below his weight when it comes to the transfer market.
That is the bottom line for the average fan. Can the most valuable club in world football as named by Forbes Magazine for eight years in a row still compete for the best players?
The overwhelming evidence since 2009 is that they cannot.
Ferguson has spent around 115m since Ronaldo became the most expensive player in the history of the sport.
Thats a net total of 25m.
Taking into consideration money made from further sales and the figure comes down to around 18m or 6m-per-year since Ronaldos exit.
Viewed in those terms what difference is 64m really going to make?
Is it going to alter Fergusons mantra of there being no value in the market? Will it mean that the next time a Wesley Sneijder, Karim Benzema or Eden Hazard become available then United will be able to seal the deal rather than merely flirt with Europes hottest properties? In all likelihood no.
This is not a 64m bonanza for Ferguson, even if the Glazers have admitted that their indebtedness does affect Uniteds ability to compete for players.
No supporter will oppose the reduction of the mas! sive deb ts that came as part of the Glazers controversial takeover in 2005 but the reality is that Uniteds spending power is unlikely to be significantly boosted by the share issue.
Rough estimates are that the club will be 7m better off year-on-year.
Thats nothing to be sniffed at for the average man on the street but in real terms that figure will buy you Bebe and about a quarter of Luka Modric.
Fans can at least draw comfort from the fact that their US owners have found new ways to generate cash.
Shares are a much more palatable source of income than the sale of say, Wayne Rooney, or a hike in ticket prices.
But it also confirms their long-held claims that the servicing of the clubs debts has severely impacted upon on their ability to compete in the transfer market.
Ferguson hasnt so much as spent more than 20m on a single player Dimitar Berbatovs 30.75m transfer from Tottenham in 2008.
Sir Alex Ferguson hands Antonio Valencia No.7 shirt and he hints at more Old Trafford arrivals
Manchester United boss Sir Alex Ferguson hints at more signings
The cumulative effect of the ageing of players like Ryan Giggs, Paul Scholes and Edwin van der Sar and the fantasy football spending of City has seen a shift in power to the point that Roberto Mancinis side pipped United to the Premier League title last season.
That was achieved with superstar acquisitions like David Silva, Yaya Toure and Sergio Aguero.
Meanwhile, Uniteds attempts to hold off the b! lue tide were largely fired by Scholes decision to step out of retirement in January.
Ferguson has been forced to shift his focus to emerging talent, while rivals have cherry- picked world stars.
Hazards decision to join Chelsea this summer for around 35m from Lille was the latest blow to Uniteds ego emphasising the sea change since the days when Ferguson could lure players like Ruud van Nistelrooy, Rio Ferdinand and Rooney with rich deals.
Since relinquishing the title to City, United have acquired Shinji Kagawa in a deal that could rise to 17m and Crewe prospect Nick Powell for around 4m, while Ferguson still hopes to make a further two signings before the start of the season.
More telling is a section in Uniteds application that states that the youth academy is a primary source of new talent for our first team and that 10m will be spent developing their Carrington training ground over the next two years.
While a commitment of creating from within is part of Uniteds DNA, supporters are hanging on for the first marquee signing since Berbatov.
They began the summer hoping to see someone like Modric paraded in red not 64m swallowed up by a bank balance that is still a long way from the black.
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To put it further into context, it would reduce the clubs debts from 423.3m to 359.3m.
To borrow a frequently used term in their application to list the club on the New York Stock Exchange, Uniteds indebtedness remains astronomical.
Frankly 64m is a drop in the ocean that is still likely to see Sir Alex Ferguson forced to punch below his weight when it comes to the transfer market.
That is the bottom line for the average fan. Can the most valuable club in world football as named by Forbes Magazine for eight years in a row still compete for the best players?
The overwhelming evidence since 2009 is that they cannot.
Ferguson has spent around 115m since Ronaldo became the most expensive player in the history of the sport.
Thats a net total of 25m.
Taking into consideration money made from further sales and the figure comes down to around 18m or 6m-per-year since Ronaldos exit.
Viewed in those terms what difference is 64m really going to make?
Is it going to alter Fergusons mantra of there being no value in the market? Will it mean that the next time a Wesley Sneijder, Karim Benzema or Eden Hazard become available then United will be able to seal the deal rather than merely flirt with Europes hottest properties? In all likelihood no.
This is not a 64m bonanza for Ferguson, even if the Glazers have admitted that their indebtedness does affect Uniteds ability to compete for players.
No supporter will oppose the reduction of the mas! sive deb ts that came as part of the Glazers controversial takeover in 2005 but the reality is that Uniteds spending power is unlikely to be significantly boosted by the share issue.
Rough estimates are that the club will be 7m better off year-on-year.
Thats nothing to be sniffed at for the average man on the street but in real terms that figure will buy you Bebe and about a quarter of Luka Modric.
Fans can at least draw comfort from the fact that their US owners have found new ways to generate cash.
Shares are a much more palatable source of income than the sale of say, Wayne Rooney, or a hike in ticket prices.
But it also confirms their long-held claims that the servicing of the clubs debts has severely impacted upon on their ability to compete in the transfer market.
Ferguson hasnt so much as spent more than 20m on a single player Dimitar Berbatovs 30.75m transfer from Tottenham in 2008.
Sir Alex Ferguson hands Antonio Valencia No.7 shirt and he hints at more Old Trafford arrivals
Manchester United boss Sir Alex Ferguson hints at more signings
The cumulative effect of the ageing of players like Ryan Giggs, Paul Scholes and Edwin van der Sar and the fantasy football spending of City has seen a shift in power to the point that Roberto Mancinis side pipped United to the Premier League title last season.
That was achieved with superstar acquisitions like David Silva, Yaya Toure and Sergio Aguero.
Meanwhile, Uniteds attempts to hold off the b! lue tide were largely fired by Scholes decision to step out of retirement in January.
Ferguson has been forced to shift his focus to emerging talent, while rivals have cherry- picked world stars.
Hazards decision to join Chelsea this summer for around 35m from Lille was the latest blow to Uniteds ego emphasising the sea change since the days when Ferguson could lure players like Ruud van Nistelrooy, Rio Ferdinand and Rooney with rich deals.
Since relinquishing the title to City, United have acquired Shinji Kagawa in a deal that could rise to 17m and Crewe prospect Nick Powell for around 4m, while Ferguson still hopes to make a further two signings before the start of the season.
More telling is a section in Uniteds application that states that the youth academy is a primary source of new talent for our first team and that 10m will be spent developing their Carrington training ground over the next two years.
While a commitment of creating from within is part of Uniteds DNA, supporters are hanging on for the first marquee signing since Berbatov.
They began the summer hoping to see someone like Modric paraded in red not 64m swallowed up by a bank balance that is still a long way from the black.
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