Money Matter$

Why the credit crunch is good for Liverpool but bad for Manchester Utd

Global belt tightening brings mixed fortunes to the big four

Manchester Utd’s £14m-a-year- AIG shirt sponsorship looked to be on rocky ground earlier this week, and the future of the deal looked no more certain as the US Federal Reserve rescued the insurance behemoth with a £47bn refinancing package yesterday: rather understandably, they will no longer consider sports sponsorship a ‘core activity’.

According to this morning’s Guardian, however, the frailty of the American International Group should not concern United as much as the intentions of the Glazer family. Malcolm and co have been forced to spend $150bn on ‘PIK‘ loans in recent months, the interest on which is a hefty 14.45 per cent. A Glazer representative insists that “the investment is for the long term,” although the Guardian strongly suspects ex Football League chairman, United fan and major dealmaker Keith Harris is touting for a new buyer.

In light of current affairs, keeping Cristiano Ronaldo on the books looks like a questionable decision – that £100m would be thoroughly useful at the moment, and they almost certainly won’t get an offer as ridiculous as that again.

Over in Liverpool, however, the crunch could have an entirely different effect on the club’s fiscal future. The much-maligned American combo Hank Hicks and Billy Bob Gillett appear to have expereinced trouble with creditors earlier this year, and the economic climate may soon force them out of the door. Don’t be surprised if a Dubai-based consortium take over at Liverpool before Christmas…


8 responses so far
  • Zeddie // September 18, 2008 at 11:36 am

    Tired of waiting for Dubai. Maybe Dubai are tired of waiting for the yanks. If Glazer wanted sell united, i think the Dubai guys would consider it and forget liverpool.

    Liverpool have two wankers trying to milk each other, the stadium the wankers cant finance

  • Paddy // September 18, 2008 at 2:10 pm

    The problem is the Sheik is offering 500Million, the yanks want nearer 7-800.

    I am sure the Sheik is biding his time, as in the current climate, the banks will force the clueless 2 some to sell up as they won’t be able to re-finance.

    If ever there were a pair of clueless, absolutely stupid, no nothing about football bozos – then these are them.

  • michael // September 18, 2008 at 10:37 pm

    hopefully the Yanks yank themselves out of LFC, It would be a great xmas present if that happened..

  • AussieRed // September 19, 2008 at 1:33 am

    It’s not the DIC consortium that is going to be taking over Liverpool, but Sheikh Mohammed himself, using his own personal finances, he’s lining up a bid of around 500mil, that is 150mil going to the Americans and 350mil to pay off the debts. I don’t blame the Americans for this downfall, I blame George Bush and the economy crash, I don’t think Hicks and Gillett have actually done anything wrong or untoward, afterall, they own other sporting franchises, so they can’t use all their resources on Liverpool no matter how much we would like them to.

  • Zeddie // September 19, 2008 at 7:19 am

    Whoever, get these two hillbillys out of anfield.
    Bush,hahaah, bush is whats wrong with the whole world.

  • KEYSER SOZE // September 19, 2008 at 8:05 am

    Randolph and Mortimer need to fook off as quickly as possible. I’d love to see Royal Bank foreclose and THEM sell to the Sheikh!

  • jiggalo // September 20, 2008 at 11:15 am

    I am afraid that liverpool and utd will not get bought by any ARAB consortium as they are both owned by jewish people.

    The arabs do not recognise jews a case in point being the fact that when manchester city go to abu dhabi for a n exibition game Tal ben haim will not be allowed in as he has an Isreali passport. A country that no arab state admits exists.

    So good luck finding investment but it will not come imediately from the middle east.

  • Tottenham could be sold “by the end of the week” | The Spoiler // January 12, 2012 at 5:17 pm

    [...] Keith Harris (the former Football League chairman rumoured to be touting a buyer for Manchester Utd) has been employed by Everton, who would ‘sell tomorrow’ if an interested party took [...]

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