United Have £180mn for Transfers but Debts made it only £25mn Available

Manchester United have a staggering £180 million in their transfer coffers but the club have told investors that the kitty can be guaranteed only £25m each financial year.

United’s latest set of financial figures released last Friday revealed that the £80m Cristiano Ronaldo windfall has not yet been spent.

In a conference call to investors later that afternoon, United chief of staff Edward Woodward reiterated that the club’s guidance figure of £25m for net transfer spending remained valid.

Given that the Old Trafford club also have a further £75m credit facility available, in theory there is £180m available to spend on players, which would give Sir Alex Ferguson budget to rival Manchester City’s.

The reality, though, is somewhat different. The quarterly results for the period January to end of March 2010, which take in the first nine months of the financial year, showed that the Glazers are continuing to increase the debt burden on the club despite the healthy growth in matchday, media and commercial revenue.

Although the overall debt in the club has decreased from £543.3m year-on-year to £520m, it has increased by £12m since the Glazers took out a £500m bond in January to refinance what the club calls their “senior debt”.

The accounts of Red Football Ltd, United’s holding company, show a cash balance of £95.9m, but around £45m of it will be paid in interest. The figures also disclosed that the club lost £40.7m in a disastrous interest rate swap secured as part of a 2007 financing arrangement.

Digging deep? | Glazers could open up transfer funds

The greatest hindrance to United’s transfer plans could lie in the payment in kind (PIK) loans, which, although not revealed in the results posted by the football club, are estimated to have grown to £225m. They are due to increase to 16.25 per cent in August because of the firm’s high debts.

The fear of many United supporters is that the Glazers will dip in to the Ronaldo money to partially repay the PIK debt.

When the bond was issued, the club said that net spending would average £25m. During the current financial year, the net spend on players is £26.4m following the transfer last month of Ben Foster to Birmingham City.

This takes into account the purchases of Antonio Valencia, Gabriel Obertan, Mame Biriam Diouf, Chris Smalling and Javier Hernandez but not the sale of Ronaldo, who moved to Real Madrid at the end of the 2008-09 financial year.

Given that Sir Alex Ferguson appears to have reached his limit for the current financial year, it suggests that any summer spending will come after June 30.

Joe Cole Near to sign United

LONDON, May 30: Manchester United have signed Mexican striker Javier Hernandez from Chivas of Guadalajara for £8m and centre-back Chris Smalling from Fulham for £12m – and Chelsea’s England forward Joe Cole could be next on the list.

But this does not mean that United are splashing the cash. Quite the opposite. United’s reported interest in the England forward may be a sign that the Glazer family are continuing to play careful with their money . . . because Cole would be available on a free transfer since his contract with Chelsea is coming to an end.

Chelsea, apparently, have not contacted Cole or his representatives about a contract extension as the 28-year-old had hoped. He is seeking a pay rise to £100,000-a-week and though the club is said to have been prepared earlier to pay ‘only’ £80,000 even that offer has been withdrawn.

This knowledge has prompted interest from United as well as from Tottenham whose manager, Harry Redknapp, oversaw Cole’s emergence as a teenager at West Ham. However the fact that United are interested in Cole, just as they signed Michael Owen on a free transfer last year from Newcastle, has added to speculation about the Glazers’ reluctance to buy big.

United have just announced losses of £69m in the first three months of the year thought chief executive David Gill has continued to suggest that transfer funds will be available for manager Sir Alex Ferguson. Also, the latest accounts indicate that United have cash reserves of £95m which might be available for team strengthening.

Other targets

But with Paul Scholes and Ryan Giggs growing ever older and no guarantees yet over the fitness of Owen Hargreaves, Ferguson may feel he needs to save up whatever he can for a new midfielder. He also knows he may need to spend more money on defence if the unsettled Nemanja Vidic finally leaves for Spanish football.

It is a sign of the times that Scholes and veteran defender Gary Neville, both now 35, are considering joining the coaching staff when they end their playing careers, possibly at the end of next season.

Meanwhile, any prospect of the Red Knights group of wealthy fans coming to the “financial rescue” with a buy-out offer which the Glazers could not refuse is receding.

No offer has yet been made or appears even imminent. Gill has always been sceptical about the prospect of a serious offer. The Sunday Times reports today that the Glazers' valuation of the club at £1.5bn has deterred a number of the consortium members.

Manchester United Owners Set for Panorama Treatment: Glazers Set for Probe

Manchester United finances under Glazers to be subject of BBC Panorama investigation
Manchester United’s finances under the ownership of the Glazer family, the club’s £712 million debt and the £80 million raised by the 2009 sale of Cristiano Ronaldo are set to be the subject of an investigation by Panorama, the BBC current affairs programme.

United, who are due to announce quarterly financial results on Friday as a condition of the club’s £500 million bond issue, have yet to co-operate with the programme makers ahead of the proposed screening date of June 7.
But with manager Sir Alex Ferguson having not spoken to the BBC since accusing the corporation of “breathtaking arrogance” following a 2004 Panorama expose into the alleged business dealings of his son, Jason, the programme is unlikely to soothe relations.

Although the investigation is understood to be based on a broad theme of football club ownership and the game’s financial health, the situation surrounding the Glazers and attempts by the Red Knights to launch a supporter-backed takeover bid for United are believed to form the main thrust of the programme.
Despite the Glazer family’s consistently-stated determination to resist any takeover bid, supporter groups behind the green-and-gold anti-Glazer campaign continue to claim that the Americans’ business interests in their home country, which include nationwide shopping malls and real estate, are suffering as a result of the economic downturn.
Those claims, and suggestions that United’s income is being used to service the club’s debt, are understood to form part of the Panorama investigation. (Telegraph)

Now I am sure I am not the only one who hopes that the BBC programme digs some serious dirt on the Glazers but whether or not a televisual feast of embarrassments will have any effect on whether the Manchester United owners decide to leave is another matter.

Clearly the level of debt the club has been saddled with since the Americans arrived is mind boggling and hopefully the programme will try to get to the meat of that debt and present their findings in a manner that is easy to understand.

You see when we, the football fans, see that a club has amassed debts of £712m its hard to quite work out how this has happened. Its clear that the Glazers purchased the club with loans that they then have made the club pay the interest on but I would be interested to know how their previous debts with other ventures has been tied into the club, as these could be the types of problem that take decades to resolve.

Anyway, should be a programme not to be missed!

Jose Mourinho wants to coach Rooney

Jose Mourinho has admitted he would like to coach Wayne Rooney, but says his dream will not come to fruition.

The Portuguese tactician guided Inter Milan to a remarkable treble last season, clinched by their UEFA Champions League final victory overBayern Munich.

But he is set to be named the new manager of Real Madrid next week, following the departure ofManuel Pellegrini.

The soon-to-be Los Merengues boss has already revealed he would love Liverpool and Chelsea midfielders Steven Gerrard and Frank Lampard to join him at Madrid, and has now shown his admiration for Rooney.

However, Mourinho admits Manchester Unitedmanager Sir Alex Ferguson would never let the star forward leave Old Trafford.

"I'll say it is impossible," he told AS.

"I would like to coach Rooney but my friend Ferguson can rest easy - it is impossible."

Manchester United is not For Sale

United 'not for sale'

Statement from the Manchester United Board:

"The Board notes recent press speculation regarding a possible bid for Manchester United.

"The owners remain fully committed to their long-term ownership of the club. Manchester United is not for sale and the owners will not entertain any offers."

SAF You have money to spend at Transfer Market :David Gill

Gill: Sir Alex is not restricted financially

It is five years ago this month that David Gill led the final doomed boardroom stand at Manchester United against the Glazer family's takeover. He was the chief executive who went overnight from running a business that was debt-free to one that now supports £504m of the total £716m debt that the American owners borrowed in order to buy the club. Five years later, three Premier League titles and one Champions League trophy down the road, the Glazers are still reviled by the most vocal elements of the club's support, most notably the fans who wear the green and gold of Newton Heath in protest. Gill, once the hero of the supporters' groups for standing up to the Glazers, now finds himself a target for their anger.  In his most detailed interview yet, the man at the centre of United and the controversial Glazer regime spoke exclusively to The Independent about why he thinks United can still prosper. "The money is there," insists Gill. "People say Alex is saying that because he has to. Anyone who knows Alex Ferguson knows he wouldn't say that if he didn't mean what he said. The money is definitely there. The results for the quarter ending 31 March will show the figures are about £95m cash. We are not in a situation whereby Alex is restricted in what he wants to do with the club and his modus operandi as a manager. We have never said: "You can't do that, we have to pay interest [on the debt]." I can look you in the eye and say that. He would say exactly the same thing. People don't believe it. We never said to him: "You can't go for that player because he's too much."
Sam Wallace, The Independent

All the papers report that United have completed the deal to sign Javier Hernandez after the Mexico striker was granted a work permit. His transfer from Chivas will now through on July 1 as revealed on ManUtd.com on Thursday.

Source: Manutd.com

Man Utd Ready to bid £46 for Ibrahimovic

With David Villa having signed for Barcelona, Spanish daily ‘Sport’ claims that Zlatan Ibrahimovic could be sold for around 50 million Euros to either Manchester United or Manchester City .

Villa’s move to the Nou Camp from Valencia was confirmed yesterday and the striker is expected to be an automatic first choice striker at the Nou Camp, having consistently been one of Spain’s top scorers over the past few seasons.

The move brings into question the future of Swedish striker Zlatan Ibrahimovic at Barcelona. On paper, Ibrahimovic has enjoyed a good first season in Spain, scoring 20 goals in 41 appearances for Barcelona since his high profile move from Inter Milan last summer. However, his performances have been criticised by the notoriously 

 harsh Spanish media.

‘Sport’ speculates that Ibrahimovic wants to stay and prove himself at Barcelona and that the club are happy for him to do so, unless they receive a bid of around 50 million Euros, with the Manchester clubs in prime position. Manchester City boss Roberto Mancini knows Ibrahimovic well from his time at Inter Milan and is assumed to be looking to boost his attacking options. Meanwhile, Sir Alex Ferguson will likely look to add some firepower in order to relieve Wayne Rooney of the goalscoring burden at Manchester United .

Both sides are rumoured to be looking to offload strikers this summer, possibly making further room for Ibrahimovic. Dimitar Berbatov’s future at Manchester United has been in doubt for some time, while Craig Bellamy has been linked with an Eastlands exit as he apparently does not see eye to eye with Mancini. (IMScouting)

Daniele De Rossi moving to Old Trafford for £38million

Sir Alex Ferguson is reportedly weighing up a potential big money bid for Roma midfielder Daniele De Rossi this summer. The Manchester United boss will have seen that local rivals City have been strongly linked with the battling Italian and the Old Trafford manager knows that he could well do with a bit of steel in his midfield and may make a move for the 26 year old.

Having seen Owen Hargreaves return from injury but still not convinced the England international will have returned a different player to the one he invested a great deal of time and money chasing, Ferguson has been looking for players to play in the centre of his Man United midfield.

With Paul Scholes nearing the end of his glittering career, and with Anderson and Michael Carrick both coming off the back of very average campaigns, the club could do with a new addition and De Rossi is a top quality player who is in many ways two types of players in one.

Never afraid to put in a tackle, but fortunately more able to do so successfully than Scholes, the Rome born man is also able to steer his side towards goal and has the ability to score his fair share of crucial corkers. The valuation of the World Cup bound De Rossi could however be something of a problem. Roma are reportedly pricing their player at a rather inflated £38m which could well scare off any interest in the player, which may well be Claudio Ranieri’s intention.

Fergie has last chance to move Spanish ace to Old Trafford

Manchester United manager Sir Alex Ferguson is ready to take on Real Madrid in the race to sign Valencia midfielder David Silva. Real Madrid were reportedly close to a deal for the Spanish international but it emerged yesterday evening that Ferguson is considering launching an offer to tempt the player to Old Trafford.

The 24-year-old is ready to quit Valencia and challenge for major European honours with the wideman being linked with Chelsea, Barcelona, and Liverpool in the past few months, however Real Madrid and Manchester United are now considered the front – runners to land the tricky winger. 

Real Madrid made contact with Valencia last week regarding the availability of Silva with the Spanish media reporting that Madrid chiefs would secure a deal in the coming weeks, however reports this morning suggest that the door is still open for Manchester United manager Sir Alex Ferguson to make an approach. Fergie is a keen admirer of Silva and has tracked him for the last year, but Ferguson has warned that he will not pay over the odds for player’s in the transfer market, and admitted he was only looking at making one addition to the Red Devils squad.

Sir Alex Ferguson are you going to buy a single player or not??

Sir Alex Ferguson

Manchester United manager Sir Alex Ferguson has expressed his concern and frustration with the current transfer market, quietening noises that United may spend big during the summer.

Ferguson believes that bringing through more young players and investing in the squad's future is a more pressing concern and suggested that the Red Devils will potentially be targeting just one new signing in addition to the confirmed deals for Fulham's Chris Smalling and Mexican Javier Hernandez.

"In the market today it's very, very difficult and the structure of our squad is good in terms of ages, the balance, the numbers and there's a lot of good young players," Ferguson said, as quoted by the Press Association.

"Sometimes you have to trust in all the development of the last few years and I'm going to stick with that, or most of it.

"There may be one signing and maybe we'd like to get a good player to the club, of course, but it's not easy in the present day climate and I've nothing definite to tell you because we're still assessing whoever's available and the difficulties in terms of who you'd bring in."

United’s chief executive David Gill, also present with Ferguson in New York to promote the club's four-game North American tour, was keen to mirror Ferguson’s sentiments.

"Hernandez and Smalling are signings we've already made and the other point to bear in mind is that the Premier League is bringing in squad limits next year of 25," Gill said.

"There will be unlimited Under-21s and other rules and we'll be taking all that into consideration."

With goalkeeper Ben Foster on his way to Birmingham City, United boss Ferguson was quick to claim that young England Under-21 goalkeeper Ben Amos will now be third choice at Old Trafford.

"When we decided to let Ben [Foster] go, we were in the process of letting a good young goalkeeper, Ben Amos, go out on loan," Ferguson continued.

"He's in the England Under-21 team but we can only accommodate three goalkeepers. So when the situation with Ben's future at Manchester United came into it and we agreed to let him go, we stopped Ben Amos from going on loan.

"He will now be our third goalkeeper, he's very talented and has a good future ahead of him."

Javier Hernandez, signed from Mexican outfit Guadalajara, is set to feature at this summer's World Cup and asked whether he would play a part in a pre-season fixture against his former club, Ferguson insisted it would depend solely on Mexico's progress in South Africa.

"It depends when his last game is for Mexico," Ferguson went on.

"Normally we give the players 28 days' rest but in the case of Hernandez we'll bring him to Philadelphia as soon as his games with Mexico are finished.