United’s Debt Dwarfs Arsenal’s Debt

Earlier this week the sage of the financial world Alex Ferguson made a pronouncement on the financial situation at Arsenal.  His claim was that Arsene had very little money to spend and it will be tough for Arsenal this season.

This comes from the club who are £800million in debt and have annual interest payments of £45million.  This year Ferguson sold Ronaldo for £80million and has spent £19million on players.  The Glazers need to not only service the interest payments, but will also be required to repay the debt.  The Glazers have already increased season ticket prices at Old Trafford, now it is the time for the playing staff to be attacked.

Despite knowing for two years what the asking price for Tevez was, United were reluctant to meet the £25million fee as that would have eaten into the money required by the Glazers.  The spin coming out of Old Trafford is that there are not players out there who want to fight for United, so Fergie is not buying anyone.  Tevez certainly used to fight or United, but he would have cost money and if it is a case of fighters, I have not seen any fight from Berbatov. 

Clearly United are undergoing a financial squeeze and Fergie wants to deflect attention away from United and on to Arsenal.

Arsenal have debt and that is well known.  Our debt is broken into two elements, the £135milion used to develop Highbury and the £232million used to build the Emirates.  It is the first of these loans that is concerning the club and the directors are trying to renegotiate a loan extension as the housing market has collapsed and the club will find it difficult to pay this loan by April 2010.  Our annual interest payment is £17million, whilst our profits before interest is £48million.  This is adequate cover and does not in any way necessitate Wenger having to sell players to finance the interest payments.

The press have not yet looked into the United finances and the fact that Fergie has not spent the transfer fee received from Ronaldo, but if they dig a little they will find a club in deep financial quagmire.

Posted on July 24, 2009, in Arsenal News, Arsenal Ownership and tagged , , , , . Bookmark the permalink. 4 Comments.

  1. player dun fight for united??? I will not see this under SAF….fight or eat our boot..hahahaha…i hate this Scot but he own my respect for being one of the best in the world….

  2. mike - gunner fan79

    Thanks to chequebook managers and vulgar wage demands (such as the great steppy over’s) per week, big institutional teams such as Utd, Chelsea Livepool etc., are in financial quagmire. How many of the fans who pay these “brats” wages, are unemployed? How many of us lucky to be still in jobs are on 145k per yer, let alone per week? How many of us can afford to wrap the family/general/own car around a lamppost and shrug your shoulders as if to say “the fan will buy me another”. Its time to call a halt to this stupidity. A company with 800m debts cant survive (look at GM in the States – and they manufactured some product). 50 weeks wages of some of these “Stars” would keep a small business afloat in todays economic climate, and provide jobs. I applaud managers who stick to their ethics and wont break a wage regime. We fans cant keep the Sky TV , shirt sales , ticket hiked up prices , continually serviced just for a chosen few. Which is more important – 22 teenagers kicking a ball around , or the mortgage and future of your kids? Fat lot of good it will do the fan who has been made redundant from 30k pa to dole. Oh well I guess one can always watch the match on the TV through the shop window. Scarey thought but reality my friends. Those brats that continually demand largess from your pockets dont give a continental damn about you

  3. then how come we’ve got o money to spend????????

  4. well atleast united wins trophies…. 4 yrs and counting… i dont see an improvement for Arsenal even this season….

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