Join Now | 
HomeAboutContact UsPrivacy & SecurityAdvertise
Soccer America DailySpecial EditionAround The NetSoccer Business InsiderCollege Soccer ReporterYouth Soccer ReporterSoccer on TVSoccer America Classifieds
Paul Gardner: SoccerTalkSoccer America ConfidentialYouth Soccer InsiderWorld Cup Watch
RSS FeedsArchivesManage SubscriptionsSubscribe
Order Current IssueSubscribeManage My SubscriptionRenew My SubscriptionGift Subscription
My AccountJoin Now
Tournament CalendarCamps & AcademiesSoccer GlossaryClassifieds
Man U and the murky world of leveraged buyouts
The Telegraph, January 28th, 2010 12:30PM

MOST READ

MOST COMMENTED

Venture capitalist Michael Moritz explains what Manchester United's finances reveal about leveraged buyouts (LBOs): "What's happening to Manchester United football club is similar to the same fate that has beset many U.S. and European companies that have been taken over by LBO firms."

Five years ago Manchester United was a thriving, healthy business. The club had plenty of cash, was free of debt and had the firepower to invest in the future. All that changed after the Glazer family of Florida completed their assault on the club. The club recently had to secure refinancing of the $810 million of debt assumed after the club was taken private.

Substitute the Glazer family with the names of LBO firms and Manchester United with the names of numerous corporations and you can see what could happen: "In the U.S. we've watched the LBO firms, calling themselves 'private equity,' burden companies. They take over businesses that in some cases employed tens of thousands of people, formed the heart of many communities and had been steady and reliable taxpayers. These are companies such as Readers Digest (bankrupt), Simmons Mattress (bankrupt), Mervyn Stores (bankrupt). Read the original story...


No comments yet.

Sign in to leave a comment. Don't have an account? Join Now




AUTHORS

ARCHIVES
FOLLOW SOCCERAMERICA

Recent Section 2 Around the Net
Yeagley: 'They all want to beat Indiana'    
A Big Ten title extended Indiana's streak of consecutive NCAA Tournament appearances to 27, but it ...
Belmont Abbey freshman McGuire remembered on campus    
Belmont Abbey freshman Michael McGuire collapsed following a pre-season fitness test Aug. 16 and died five ...
Report: Benatia Joins Bayern Munich from Roma     
AS Roma on Tuesday sold central defender Mehdi Benatia to Bayern Munich on a five-year contract. ...
Report: Ebola Causing Havoc with African Nations Cup Qualifiers    
Ivory Coast will not be allowed to host their African Nations Cup qualifier next week against ...
Algeria Postpones Matches Following Player's Death     
Algerian authorities have closed the stadium in Tizi Ouzou where a player was struck by an ...
Reports: United Agrees $100 Million Fee for Di Maria     
Manchester United on Tuesday agreed to pay Real Madrid 60 million-pounds ($100 million) for the transfer ...
Report: Gunners' Giroud Could be Out Three Months    
Arsenal is anxiously awaiting the results of a second scan on striker Olivier Giroud's ankle amid ...
Maccabi Tel Aviv Coach Quits; Club Blames Gaza War    
Maccabi Tel Aviv coach Oscar Garcia on Monday quit his post, with the club saying Tuesday ...
Lampard Retires from England    
Frank Lampard on Tuesday announced his retirement from England international duty. The 36-year-old, who left Chelsea ...
Real, Atleti Blame Tiredness for Monday Displays    
European champ Real Madrid and Spanish champ Atletico Madrid got their La Liga campaigns off to ...
>> Section 2 Around the Net Archives