atans1

Is MU a short?

In Footie on 11/05/2013 at 4:29 pm

By conventional financial yardsticks, the club is grossly overvalued at $3bn (£1.9bn) while also carrying £368m of debt. Now that the most reliable asset is giving up front-line duties, the stock deserves to be a double “sell.”

The valuation issue is basic: revenues were only £320m last year and half that sum was paid straight out as salaries. At the operating level, profits were only £44.9m. That entire sum was then consumed by finance costs of £49.5m, leading to a pre-tax loss of £4.7m. Naturally, there was no dividend …

Ferguson kept the club in the Champions League every season and collected trophies. In doing so, he made the Glazers’ optimistic financial assumptions work.

http://www.guardian.co.uk/business/nils-pratley-on-finance/2013/may/10/man-utd-alex-ferguson-bt-co-op

For the record, I admire Moysie’s track record at the Toffees and respect MU for choosing him, not not some European super star manager management consultant who only know how to spend money to win trophies. MU bought homegrown talent, not FT.

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  1. Pep Guardiola didn’t win anything before becoming manager of Barcelona.

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