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The Greatest Team ever is now owned by the Americans.

Who said Americans didn’t like soccer?

The truth is that Manchester United Football Club [MUFC] is in a deep financial crisis due to their new owners business tactics.

MUFC enjoyed decades free of debt, a unique position when compared to other squads with the same caliber of players. Now they are in debt, let me rephrase, they are in a deep hole. It all began when a minority shareholder undertook a hostile takeover of the team. Right below the noses of the MUFC administration.

MUFC had a policy that any shareholder that surpassed 3% of shares had to inform the team, disclosure requirements. Malcolm Glazer, the owner of the Tampa Bay Buc's in the NFL, did inform the team administration of surpassing the threshold, but his aggressive move was afterwards. He quickly jumped from 3% to 7% and then to 19%. By the time he reached 30% he was required to buy-out the rest of the shareholders. He did so with a massive loan, that had the team itself as collateral. Even though the Glazer family was also part of the collateral, their burden was over their bottom line strictly from the MUFC. This has become evident in the aftermath of the takeover and the refinancing that occurred on 2006.

The refinancing package brought three hedge funds from New York to foot the bill. Citadel, Och-Ziff Capital and Perry Capital are the creditors over the package. The team on Jan-2010 said the team had a $1.17 billion debt. In order to diminish said debt, the team issued bonds, primarily bought by fans, which brought roughly $500 million, half of what was owed.

So, after seeing their pride and joy be sold to an American and then refinanced, the Red fans are stuck with a bond maturity date of Feb-1-2017. The bonds have a rate of interest that requires yearly payments in the ballpark figures of $90M. The real problem, is not the bonds, is that the hedge-funds are still owed over the original debt. And guess what? The refinancing package must be paid before 2015, two years ahead of the fans. So, MUFC has the New Yorkers as creditors and now a new set of fanatics that are bond holders of a, sinking vessel?

The response from fans has been of constant criticism to the Glazer approach and attitude. The fans claim the Glazer family is taking MUFC profits out of the club in order to repay debts that they himself have brought upon the team. As the chant goes: “Marching from the Stretford End to the Wall Street scum, watch as our money goes to a yankee bum”

The fans go as far as to claim that the Glazer relation with the hedge funds is of concern, since these same hedge funds have on the past helped the Glazer survive troubled times. Fans claim this is returning the favor using the clubs money. Fans will not get their stadium refreshed, they will have higher prices in tickets and concessions, and their team roster will undoubtedly suffer.

As a way to cast their anger, fans have diminished using the infamous Red colored shirts and scarfs. They now prefer the Green and Gold, which symbolizes the teams origin before it became the greatest team of all Europe, back when they were simply known as Newton Heath.

Time will tell what will happen with the team, but one thing is for sure, no Red Knights will appear and save the team, as had been promised. The group of wealthy fans fancied the idea of buying out the, not for sale MUFC, with a $1.5 billion offer, but at the end it did not materialize.

My two cents are that Glazer bought the team for $800M, valued the team at $1.16B, and will most likely not even consider a buy-out for less than $2B. Glazer is no fool, and if he can’t repay, screw it, his buddies will be the new owners of the greatest team of all Europe. Americans win, again. Sorry, but the Busby Boys are now Yanks.

Respect for the Troops

Today my blog will be in memory of our fallen soldiers. Today we heard the news that Navy Seals had suffered a helicopter crash and 31 of our finest men and women lost their lives. May they rest in peace and their families pass through these hard times.

It is rumored that some of the soldiers who perished were from the elite unit that took down Osama Bin Laden earlier in the year. Those soldiers have our eternal gratitude.

God bless us all, and may God Bless America.