#GlazersOut Movement

I’ll try keep this as simple as possible. When purchasing the club, Malcolm Glazer used capital to purchase the club in the form of loans which were secured against club assets, mainly Payment in Kind Loans (PIK loans). PIK loans are loans with significant risk in which the borrower fan pay interest through additional debt rather than cash. Something which put United on the backfoot immediately. Now years on, United has football’s highest debt. The reasons why are very simple, by providing capital through PIK loans, the Glazer’s inject funds into the club by adding to the debt rather than through cash directly. As a result, if the Glazers chose to sell the club they take no personal loss, a major benefit for them.

Figures have shown that the Glazer family has taken around £1 Billion from the club. 49% of United’s revenue from operating activities have been spent on loan and interest repayments. Once again, going back to the PIK loans.

On top of that, figures show in the past three financial years alone. The Glazers were paid £65m in dividends. As well as salary packes of £36m. In 2017 the Glazers sold 4.3m of shares to the Cayman Islands which netted them a £56m profit.

In comparison, while the Glazers have taken a billion away from the club. Cross-town rivals Manchester City have had the same amount INJECTED into the club by their ownership. The differences in performance have clearly demonstrated the approaches of the two ownerships.

In the most recent financial year, Manchester United’s debt was at €536m. Which was approximately equal to revenue and 80% of assets. The debt figure was at zero prior to the Glazers arrival dating back to 1931. However, although the debt is the highest among any football club. The revenue remains phenomenal. The club had a revenue of £581m which keeps growing annualy.£200m worth of earnings before interest, tax depreciation and amortisation are also represented.

Essentially, this provides the Glazers with absolutely no incentives to sell. The cash flow remains favourable and they’re not experiencing any financial cost - much rather the club is bearing the complete costs of any financial operation.

In the case they plan to sell, it remains a difficult prospect. In simple, the Glazers seem to want around USD 4 Billion for the club. This would mean that the 20th richest person on earth with a net worth of 40 billion would have to give up 10% of his net worth. Unlikely. However, even in the case of a Saudi take over, issues remain over the possible negative effects due to Saudi Arabia’s poor reputation world wide. Potential issues with sponsors could be of concern to the club.

Essentially the Glazers bought the club solely for financial purposes. This is reflected in the appointment of Ed Woodward to oversee the club’s operations as he has zero background in the sport but much rather a heavy business background as an accountant and investment banker. Overall, as long as the Glazers are receiving money from the club’s operation they will stay. In order to give the Glazers reason to leave, their source of cash flow must cease - the fans. Let me explain how this can happen and what you as fans can do.

In regard to match day revenue, there is nothing fans can do as the stadium will be filled regardless on match day. Rather, it’s important to focus on retail, sponsorship and market revenue. In regard to retail revenue, the club earned £102.9 million this past year. This is all the result of purchasing merchandise and club licensed products. On average, United sell 1.75 million shirts per year. Now imagine if just 10% of those stopped purchasing those shirts.

A decrease in sales for sponsors along with the negative comments on each club related post would have Manchester United's sponsors strongly considering future deals with the club. Something which can heavily impact Manchester United as the club would lose revenue in one of their key areas of revenue annually.

A year ago, Manchester United had a share price of $27,70. Now the share price is $18.02. Meaning that more than over 1.2 billion pounds has been taken off Manchester United's value within 12 months. Something which the Glazers will be extremely aware off.

In conclusion, the only way to oust the Glazers is to decrease the profitiability of the club for them. Once that occurs, don't be surprised to see them look to sell as fast as possible to the highest bidder. Something most Manchester United fans eagerly await for.