Fergie Opens His Mouth and Rubbish Comes Out
Having had a go at Tottenham at the week-end over his attempts to acquire Barbatov, Fergie turned his attention to Chelsea and Arsenal yesterday. In his first blast he ridiculed Chelsea as being an old squad and that Scolari will not be able to emulate the success the Mourinho brought to Chelsea.
He then turned to Arsenal and in a quote that will come back and haunt him, Fergie said. “I think I read that the debt of the stadium is causing them a problem.”
Well this statement comes out of ignorance of all matters factual and financial. Arsenal have a debt of £310M which costs £15M in interest per annum. The debt is repayable in 25 years. These facts are stated in the Arsenal accounts, what is also shown in the accounts is that for the year ending May 2007, Arsenal showed a profit before interest of £42M.
As for the debt, in the Interim Statement released by the board in December 2007, the Chairman Peter Hill-Wood stated:
“During the period we have continued to invest heavily in the construction works across the Highbury Square site and in the progression of detailed planning permissions for the development site at Queensland Road; consequently, the carrying value of our property development stock has risen since the 31 May 2007 by some £41 million, to £141.3 million. This investment has been funded by drawings on the bank facilities we have in place specifically for these two projects – the related loan balances stood at £105.3 million at 30 November 2007. The Highbury Square development is 95%pre-sold and we are at an advanced stage of negotiations for the sale of Queensland Road; together the two sites are expected to generate turnover, as sales reach legal completion, over the next two financial years in excess of £350 million.”
This means Mr. Ferguson, that at the latest, summer 2009, Arsenal would have generated £350M less associated costs, this money will be available to either pay-off the bulk of the loan, or perish the though, Wenger will have £200M sitting in the bank ready to spend on players.
Fergie should look at the financing of his own club, the Glaziers have saddled the club with £800M of debt, the interest is being rolled over and added to the debt and the only way the Glazers will cover the debt is by selling the club. If you look at Manchester United’s transfer activities, you will see that it is either self financing through the selling of player, or as in the case of Nani and Anderson, there is a small deposit and everything else is based on performances. Tevez is on loan at Manchester United and they pay Kia Jorabchian and loan fee until they are ready to buy him.