United’s £500m bond leaves investors nursing losses

February 3, 2010

Manchester United’s 500-million-pound (800-million-dollar) bond, the centrepiece of the club’s recent refinancing, has become one of the worst performing issues of the year.

The bond was fully subscribed, enabling the club to slightly reduce its debt-servicing costs and enjoy greater flexibility on future spending plans.

But investors have been left nursing paper losses which could make it hard for United to return to the bond market in the future, according to the Financial Times.

The bid price of United’s 250 million pounds of sterling-denominated bonds has dipped to 93 percent of face value while those denominated in dollars (425 million) were on offer for 94.5 percent of face value.

Bankers and analysts said the decline reflected over-pricing at the launch and the lack of a credit rating.

“In a benign credit market, Manchester United is one of the worst performing bonds since the beginning of 2009,” Suki Mann, a credit strategist at Societe Generale told the FT.

The bond issued by United has proved unpopular with fans because of controversial provisions contained in the prospectus.

These include the possibility of United’s Old Trafford stadium and Carrington training ground being sold and then leased back to the club, as well as authorising the transfer of funds from United’s reserves to the club’s parent company, Red Football Joint Venture Ltd.

The most recent accounts for Red Football, owned by the US-based Glazer family, showed that it had debts of 719 million pounds, including over 200 million owed to hedge funds in the form of ‘payment in kind (PIK)’ notes on which the interest rate now exceeds 16 percent.

United’s chief executive David Gill said at the weekend he was “100 percent convinced” the sale and leaseback of Old Trafford and Carrington would never happen and stressed that the Glazers, not the club, were responsible for repaying the PIK notes.

Gill also insisted that the club’s finances were not preventing United boss Sir Alex Ferguson from strengthening his squad, as many fans suspect.

LONDON (AFP)

Tags: bid price, bond market, centrepiece, controversial provisions, David Gill, dollar bond, financial times, Glazer, glazer family, glazers, launch, london, Manchester, manchester united, old trafford stadium, paper losses, payment in kind, pik notes, red football, sale and leaseback, sir alex ferguson, societe generale

Man United chief calls 39th game “a step too far”

July 24, 2009

Manchester United chief executive David Gill has ruled out the option of playing a 39th game in the English Premier League.

The idea was first mentioned by Premier League chief Richard Scudamore last year, immediately triggering a heated debate on whether such a 39th game would be a good or a bad thing.

Gill is a clear opponent of the idea, calling it ‘a step too far’.

“If you are talking about a 39th game how do you get the symmetry? If it was the 38th whose home game would it be? How do you decide where to play?

“The domestic competition is the domestic competition. The Premier League is the Premier League in England. [...] I cannot see an extra game happening,” Gill said.

The chief made his remarks during United’s pre-season tour in the Far East, which had been mentioned as a possible location for this 39th game.

By: Jonathan Roorda

Tags: chief executive, chief richard, David Gill, domestic competition, England, far east, home game, jonathan, Jonathan Roorda, man united, Manchester, manchester united, opponent, premier league, Richard Scudamore, symmetry, the Far East

Fergie says Tevez not worth 25 million – report

July 21, 2009

Sir Alex Ferguson has hit back at Carlos Tevez, saying the Argentinian striker wasn’t worth the 25 million pounds that rivals Manchester City paid for him, reports said on Tuesday.

The 25-year-old international signed a five-year contract with City after his two-year deal at United ran out at the end of last season.

Tevez, a fan favourite at Old Trafford, has claimed Ferguson never got in touch to try to persuade him to stay.

But Ferguson told English dailies in Kuala Lumpur, where United are on an Asian tour, that this was not true.

“We made contact with Carlos. We sent him texts and spoke to him when he was in Argentina,” he said.

“Our chief executive, David Gill, made an offer to (agent) Kia Joorabchian and we spoke to Tevez before we played Inter Milan (in March) and told him we had spoken to Kia, but we never heard back.”

In the end Tevez went to big-spending City, where he will play alongside Arsenal striker Emmanuel Adebayor next season.

Ferguson drafted in Michael Owen on a free transfer to replace him, and made clear he felt Tevez was not worth what City manager Mark Hughes paid.

“In my opinion, I don’t think he was worth 25 million pounds,” he said.

“He was popular with the supporters. The fans quite rightly have their heroes and I was happy to go along with the deal as long as it was the right one but, quite simply, he is not worth 25 million.”

KUALA LUMPUR (AFP)

Tags: alex ferguson, Argentina, asian tour, Carlos, carlos tevez, chief executive, CITY, David Gill, emmanuel adebayor, english dailies, fergie, inter milan, kia, kia joorabchian, kuala lumpur, manchester city, Mark Hughes, michael owen, Milan, old trafford, rivals, sir alex ferguson, striker

Man Utd cancel Indonesia trip after bomb blasts

July 17, 2009

Manchester United cancelled the Indonesian leg of their pre-season tour to Asia after a bomb exploded at the Jakarta hotel where they were due to stay next week.

“Following the explosions in Jakarta — one of which was at the hotel the team were due to stay in — and based on advice received, the directors have informed the Indonesian FA that the club cannot fulfil the fixture in Jakarta on the 2009 Asia tour,” the club said in a statement.

They were due to fly to Jakarta after their match in Kuala Lumpur on Saturday evening and play an Indonesia XI in front of a sell-out 100,000 crowd.

The club said it was trying to reorganise that leg of the tour, which also includes matches in South Korea and China.

“We are working on a revised itinerary outside Indonesia with the promoters and we will make a further announcement when these decisions have been made,” the statement added.

“We are deeply disappointed at not being able to visit Indonesia and thank the Indonesian FA and our fans for their support. Our thoughts go to all those affected by the blasts.”

It would have been the first ever trip to the sprawling country by the team which was booked into the Ritz-Carlton hotel.

But the hotel, along with the JW Marriott, was hit by explosions that have left at least nine people dead and more than 40 injured, many of them foreigners, police said.

Two blasts shook the Ritz-Carlton and the nearby Marriott in the upscale Mega Kuningan business district in the centre of the city around 8:00 am (0100 GMT), sending a huge plume of smoke into the sky.

A third explosion was reported near a shopping complex in the north of the Indonesian capital several hours later, but police later denied initial reports that it was also caused by a bomb.

The team have a huge following in Asia, with everyone from poor street vendors to wealthy businessmen donning Red Devils shirts.

The huge fan base and the commercial opportunities it offers makes their visit as much about business as football, and a chance to play in Indonesia for the first time was earlier cited by Ferguson as important for the club.

“Our fans in Asia generate money for the club, there are no two ways about it,” said United chief executive David Gill before they left Manchester.

Ferguson has brought a 22-man squad, but a glaring omission was Park Ji-Sung.

The South Korean was not on the team list on United’s website and was not seen arriving in Kuala Lumpur. No reason was given for his absence.

Also missing was defender Nemanja Vidic. Again, United gave no reason for the Serbia international’s absence although an ankle injury forced him out of a World Cup qualifier against the Faroe Islands last month.

The only other familiar face not to travel was Brazilian full-back Rafael Da Silva, although he too was suffering with an ankle problem.

Other than that United has a strong squad, with Michael Owen set to make his debut after his shock move from Newcastle earlier this month.

KUALA LUMPUR (AFP)

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Ferguson did not try to keep me, claims Tevez

July 15, 2009

Manchester City’s new signing Carlos Tevez denied on Tuesday that Manchester United manager Sir Alex Ferguson did his best to keep him at Old Trafford.

The 25-year-old Argentinian international striker has signed for United’s city rivals in a 25.5million pounds five-year contract after his two-year deal at United ran out at the end of last season.

As United headed towards their 18th league title at the end of last term, speculation about whether United would extend Tevez’s contract grew ever more debated before Ferguson decided not to keep the Argentinian.

However, Ferguson suggested on Monday that he had in fact wanted to retain Tevez’s services and said that he had tried to contact him in January regarding his future – only to be ignored by his player.

Those claims were comprehensively refuted by Tevez at his unveiling at the City of Manchester Stadium on Tuesday as he insisted that Ferguson had never once been in touch.

“The fact I didn’t stay at United was not about the fans it was because David Gill (chief executive) and Ferguson did not do enough to keep me there,” Tevez said.

“I was there for two years and Sir Alex never called or sent any text messages in that time.

“The only time he talked to me was after a match against Roma to discuss a situation about going to play for Argentina.

“It doesn’t seem that this is the way to treat a player in two years at the club.”

Manchester City have not won English football’s top- flight title since 1968 – in stark contrast to United’s seemingly endless run of trophies over the last 15 years – but Tevez insists he is not concerned about the past and will use City’s lack of silverware as a major motivation.

“The ambition I have here is to help Manchester City recover the status that the club once had as one of the best clubs in England,” Tevez added.

“I am here to try and win titles and trophies – that is my main ambition.”

City manager Mark Hughes has the biggest available funds of any boss in the Premier League and the club continues to be linked with Arsenal striker Emmanuel Adebayor and Chelsea captain John Terry.

Officials from City and Arsenal have been locked in discussions for the last 24 hours regarding Adebayor’s future and a deal is looking increasingly more likely.

Although the same cannot be said of Terry as Hughes admitted that it will be difficult to draw the England captain away from Stamford Bridge, despite offering weekly wages in excess of 250,000 pounds a week.

“There have been discussions between us and Arsenal (regarding Adebayor) but it is my usual response to players we haven’t signed – it is not the right time or place to be discussing that,” Hughes added.

“There’s been contact and there is a deal to be done possibly but it’s not been concluded as we speak here.

“I also have fantastic respect for John Terry ever since I saw him when I was at Chelsea as a player myself.

“I think any manager would covet a player like John Terry but at this moment in time he is a Chelsea player and we have to respect that.”

MANCHESTER (AFP)

Tags: ambition, Argentina, arsenal, best clubs, captain John Terry, CHELSEA, CITY, city of manchester, city of manchester stadium, club manchester, David Gill, emmanuel adebayor, England, english football, English Premier League, john terry, Manchester, manchester city, Manchester Stadium, manchester united, Mark Hughes, premier league, Roma, silverware, Sir Alex, sir alex ferguson, stark contrast, striker, term speculation, text messages, top flight

Tevez seeking Man Utd exit since January: Ferguson

July 13, 2009

Striker Carlos Tevez had been scheming to leave Manchester United since the beginning of the year, Old Trafford boss Sir Alex Ferguson said on Monday.

The 25-year-old Argentina star is expected to be signed up by arch-rivals Manchester City for a rumoured 25 million pound (35 million euros) fee, assuming he passes a medical when he returns from holiday on Tuesday, according to reports in British media. City are to fly to South Africa later this week for a pre-season tour.

Ferguson claims Tevez’ behaviour signalled that his loyalty could not be counted on: “I half expected Carlos Tevez would be going a long time back,” said the United boss.

“I think he maybe did a deal around January because I spoke to him and gave him an offer on the night we played Inter Milan and he never came back to me,

“I phoned him on holiday and he never got back to me and I texted him twice and he never got back to me then either, so obviously he had made his mind up a long time ago,

“He was a good player and did well for us. But he obviously assessed the situation and wanted to go somewhere else.”

The move across town to Eastlands will disappoint Red Devils fans with whom the Argentine has been a favourite over the past two years.

The ex-West Ham, Corinthians and Boca Juniors star has made it clear he is frustrated by the lack of playing time provided with last season by Sir Alex.

Fans hoped some of the cash received at Old Trafford for Cristiano Ronaldo could be used to ensure Tevez remained at United. However, the South American, resisting appeals to stay from chief executive David Gill, has been mulling over the invitation from cash-rich City as well as from Chelsea.

MANCHESTER, England (AFP)

Tags: alex fans, arch rivals, Argentina, Argentine, boca juniors, carlos tevez, CHELSEA, CITY, corinthians, David Gill, England, English Premier League, inter milan, loyalty, man utd, Manchester, manchester city, manchester england, manchester united, Milan, old trafford, playing time, red devils, ronaldo, sir alex ferguson, South Africa, South American, striker, west ham

After Kaka, Real president sets sights on Ronaldo

June 10, 2009

MADRID (AFP) – After completing a move for Kaka, Real Madrid president Florentino Perez has said he intends to talk to Manchester United in a bid to convince the club to let Crisiano Ronaldo join the Spanish giants.

“I have not yet spoken to them but I will do it in the coming days,” he told Spanish public radio RNE late on Tuesday.

Spanish media have reported that Real have a pre-agreement to sign the 24-year-old Portuguese winger from Manchester United but Perez said he has never seen this agreement, which was allegedly made by his predecessor.

However sports daily AS reported Wednesday that Perez had decided to pay 89 million euros (124 million dollars) for the 2008 FIFA World Footballer of the Year under the terms of this pre-agreement.

Rival paper Marca reported Wednesday that he had already spoken to David Gill, Manchester United’s chief executive, who told the new Real Madrid president that the player would cost 96 million euros (134 million dollars).

Ronaldo, who is under contract with United until 2012, was involved in a protracted transfer tug-of-war between the English and Spanish sides last summer, with the player having publicly admitted he wanted to join Real.

Real announced Monday that they had signed Brazilian playmaker Kaka, the 2002 FIFA World Footballer of the Year, from AC Milan for a reported fee of 65 million euros.

It was the club’s first signing since Perez was sworn in once again as president of Real Madrid on June 1.

Under his previous term at Real between 2000 and 2006 he signed top players like France’s Zinedine Zidane and England’s David Beckham which earned the club the knickname “Los Galacticos” and boosted revenues from sales of t-shirts and other club souvenirs.

Tags: David Beckham, David Gill, England, English Premier League, FIFA, fifa world footballer of the year, florentino perez, France, LA Liga, los galacticos, MADRID, Manchester, manchester united, marca, playmaker, predecessor, public radio, real madrid, ronaldo, s david, spanish media, tug of war, winger, Zidane, zinedine zidane

Ferdinand will make Barcelona showdown: Ferguson

May 15, 2009

MANCHESTER, England (AFP) – Manchester United defender Rio Ferdinand will be fit for the Champions League Final meeting with Barcelona, according to manager Sir Alex Ferguson.

The England centre-half was absent from the crucial Premier League victories over Manchester City and Wigan this week and Ferguson was resigned to being without him for the possible title-clincher against Arsenal on Saturday.

But Ferguson hopes that Ferdinand will have recovered from a calf injury sufficiently to take his place in the concluding league meeting of the season against Hull and fully expects him to be available for the trip to Rome on May 27, which will see United attempt to defend their Champions? League crown.

“I’m sure he’ll be available for the final but it’s one of these calf niggles that usually take 10 days to two weeks,” the United boss said Friday.

“But I’m hopeful he’ll be fit for next Sunday’s game against Hull, which he should be really, and that would be good news for us.

“We’re giving him his treatment for these kind of injuries and he’s come along but he’s not available for tomorrow (Saturday) but hopefully he’ll be ready for next Sunday.

“He doesn’t train, he’s getting treatment but he’s doing his work in the gymnasium, cardio work and cycling but nothing more than that.”

One player whose future – and place in the Rome starting line-up – appears less certain, however, is forward Carlos Tevez, who has been the subject of intense speculation over a move away from Old Trafford.

The Argentinian striker’s loan period with United comes to an end at the end of the season and a minor war of words has broken out between Tevez’s agents and the United hierarchy.

Ferguson is clearly growing tired of discussing the topic and angrily claimed he would do so no more. However, the United manager did confirm that chief executive David Gill has opened formal talks over a permanent move.

“David Gill met with him on Wednesday and that’s a clear fact and they discussed the avenue in which Carlos Tevez could stay at Manchester United and that’s the end of that,” said Ferguson.

“It’s great coverage for the press talking to his agent every minute of the day but I’m not getting into it.”

Meanwhile, on happier matters, Ferguson is on the brink of being able to contemplate an 18th league title for his club, a mark that will equal the current record owned by United’s great rivals Liverpool.

“I don’t think I ever thought about that,” said Ferguson when asked to reflect on his arrival at Old Trafford in 1986. “My intention was to win the first one and try to break the stranglehold Liverpool had. Arsenal helped by winning it in ‘89 and ‘91 and that changed it over because they were a strong team.

“It was my intention just to win it the once and you don’t think about how that opens the door for you in the sense you see now but that was the big challenge, to win it the once.

“We were 10 titles behind and it’s a long way to go when you think that way. Having been involved in the Champions League so many times, we should have done better on some occasions and sometimes we’ve been in semi-finals and lost when we should have won, or been disappointing, but the urge and maturity we’ve shown in Europe this year and last year is very good and hopefully that will get us another trophy.”

Tags: Barcelona, calf injury, cardio work, Carlos, carlos tevez, champions league, David Gill, England, English Premier League, Europe, Ferdinand, gymnasium, HULL, intense speculation, league crown, Liverpool, loan period, Manchester, manchester city, manchester england, manchester united, premier league, Rio, rio ferdinand, ROME, sir alex ferguson, starting line, striker, title clincher, war of words, Wigan

Benitez to undergo third operation

January 14, 2009

LIVERPOOL, England (AFP) – Liverpool manager Rafael Benitez was on Wednesday due to undergo a third operation for a kidney stone complaint.

However, the 48-year-old Spaniard hopes to be back in full charge in time for next week’s league and FA Cup derby double against Everton.

Benitez last underwent surgery in December and he has since watched the Premier League leaders’ matches from the directors’ box.

Assistant manager Sammy Lee, who will oversee the team’s preparations in Benitez’s absence, told Liverpool’s official website: "It’s a difficult time for him because, you know Rafa Benitez – all he wants to do is be out there on the training pitch with his players. That’s his forte. But he’s still buoyant. "He’s going for the third operation but we’re hoping it won’t keep him out for too long – hopefully just a couple of days."

Benitez has recently been involved in a series of verbal spats with title rivals Manchester United.

Before the latest round of league matches, he accused Old Trafford counterpart Sir Alex Ferguson of hypocrisy and of bullying officials.

"He is obviously disturbed about something," Ferguson said after watching his English, European and world champions thump title rivals Chelsea 3-0 — a day after Liverpool could manage only a goalless draw with Stoke.

"When he reflects on it he must realise what a ridiculous thing he is saying," added the Scot, whose team are now just five points behind Liverpool with two games in hand.

But Benitez, far from being cowed into silence by those results, broadened his attack on Monday to criticise United chief executive David Gill for a perceived conflict of interest because of the role has also has within the Football Association, the English game’s governing body.

However Gill, who was in Macau on Wednesday to launch United’s 2009 tour of Asia, which will take them to China, South Korea, Indonesia and Malaysia, said Benitez "has missed the boat completely".

Gill dismissed the Liverpool manager’s comments as "pretty irrelevant in the grand scheme of things".

He said he acts on behalf of the 20 Premier League teams, not just United, in his role at the FA.

Phil Gartside, chairman of Bolton Wanderers, and Premier League chairman Dave Richards also sit on the association’s board.

"I was elected over the summer by the Premier League clubs. I’m very clear in my role," Gill told reporters.

"I think it is totally incorrect to assert that," Gill added, referring to the conflict-of-interest accusation.

"It’s not how I work. I do not think I would have been elected for the last two years if that was the case… He (Benitez) missed the boat completely."

Written by: AFP

Tags: Asia, CHELSEA, China, conflict of interest, criticise, Dave Richards, David Gill, England, english game, English Premier League, FA Cup, five points, football association, Indonesia, kidney stone, league leaders, Liverpool, liverpool england, liverpool manager rafael benitez, MACAU, Malaysia, Manchester, manchester united, Phil Gartside, rafael benitez, sammy lee, Scot, sir alex ferguson, south korea, thump, verbal spats, world champions

Man Utd heading to Asia for pre-season tour

January 14, 2009

MACAU (AFP) – Manchester United are heading to Asia in July for a pre-season tour with games in China, South Korea, Malaysia, and, for the first time, Indonesia, chief executive David Gill said Wednesday.

The Reds’ provisional schedule will see the team depart from Britain on July 16 for China where they will play in a yet-to-be-decided city.

From there, they move to Seoul for a match on July 20 and then down to Jakarta for the first time, where they will take on an Indonesia Super League Select at the massive Gelora Bung Karno Stadium on July 24.

The European and Premier League champions wrap up the tour against a Malaysia XI in Kuala Lumpur July 26.

But Vietnam, which last month said it was prepared to pay up to 2.47 million US dollars to entice United for a one-off game, missed out.

"Our tours to Asia are always special," Gill said in Macau.

"The atmosphere generated by the supporters is amazing. The club enjoys unrivalled support across the continent and it is great to give those fans the opportunity to see their heroes in action in their own country.

"This tour takes in some new areas with a game in Malaysia, where we haven’t played since 2001, and one in Indonesia, so it promises to provide some exciting new experiences."

United are hugely popular in the region and television revenues from Premier League games shown in Asia are big, but Gill insisted they wouldn’t be making significant money from the tour.

"But our presence allows us to deal and have relationships with multinational companies," he said.

"That presence enables us to have that extra income which is then invested back into the club. Also it allows us to get closer to the fans."

United last toured Asia in 2007 when they visited China, South Korea, Japan and Macau.

But a date in Kuala Lumpur was scrapped after they found themselves embroiled in a spat with the Asian Football Confederation, which insisted no foreign team should be playing when the Asian Cup was being held in Malaysia.

United boss Sir Alex Ferguson told the club website the players were already looking forward to Asia after their hugely successful trip to Japan in December when they won the Club World Cup and were treated like kings.

"The players are really looking forward to our Asia tour. For some, the Club World Cup in Japan was the first time they had experienced the passion generated by the club in Asia and they enjoyed it immensely," he said.

"We know we will get terrific support in each of the locations and we will be going to put on a show for our millions of fans over there. Indonesia will be a new experience for us and one I’m especially looking forward to."

Written by: AFP