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Bucs Beat

Rick Stroud, Greg Auman and Matt Baker

Is Man U debt hurting Bucs?

25

March

A little math lesson.

That's what you need to be convinced that the nearly $1-billion in debt carried by the Glazer family on the Manchester United soccer club should not be a drag on the Bucs finances.

This requires a lot of trust, since the Glazers aren't likely to show us or anyone their financials on either franchise.

But Manchester United is arguably the most profitable sports franchise in the world. Think about that for a minute. More profitable than any franchise in the NFL, MLB, NBA or NHL. It is believed to earn a profit -- not just revenues, but profit -- of $150-million per year.

The debt payment for the Glazers on Man U is believed to be approximately $75-million per year. That's a large number, but they certainly can afford it. That leaves the Glazers with an annual profit, after principle and interest on that $1-billion debt, of $75-million.

Many large businesses carry debt. The amount is relative. Look at it this way. Most people carry a mortgage on their home. If they were asked to pay the loan off in one year, chances are they would default.

But that doesn't mean they can't afford the home, even though it's loan value may be two or three times the annual salary of the buyer.

The Glazers want you to believe all their business holdings -- especially Man U and the Bucs -- are very profitable.

So the decision not to spend money on NFL free agents is a philosophy, not a lack of revenue or drain on their finances caused by Man U.

That may not make Bucs fans feel better, but it's what the Glazers want you to believe.

   



 

[Last modified: Wednesday, May 26, 2010 3:57pm]

    

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