Football Banter

(08-08-2013 00:54 )Fernandez Esperenda Wrote:  So being 590m in debt is fine then?...

Real Madrid are not 590m in debt. They have 590m worth of liabilities, which is a different accounting concept entirely. Real Madrid's debt as measured and confirmed by UEFA is 124m euros.

What is the difference between their liabilities and their debt?

William nobody likes a smart guy..... Real Madrid are in debt or whatever word you want to call it.

(08-08-2013 05:50 )babelover48 Wrote:  What is the difference between their liabilities and their debt?

Here's a simple example to explain it. If I owe you £100 but I'm holding £90 cash in my hand at this very moment, then my liability to you is £100 but I only need another £10 to meet that liability. Therefore my liabilities may be the full £100 but seeing as I could pay £90 of it now if necessary it means that for accounting purposes my debt is reckoned to be £10 only.

(04-08-2013 09:30 )munch1917 Wrote:  Alan 'smug as fuck' Hansen will still be leading the line

Alan Hansen still has a year left on his contract but has said that he'll be leaving the BBC when it finishes (which is at the end of the world cup).

(08-08-2013 10:35 )William H Bonney Wrote:  

(08-08-2013 05:50 )babelover48 Wrote:  What is the difference between their liabilities and their debt?

Here's a simple example to explain it. If I owe you £100 but I'm holding £90 cash in my hand at this very moment, then my liability to you is £100 but I only need another £10 to meet that liability. Therefore my liabilities may be the full £100 but seeing as I could pay £90 of it now if necessary it means that for accounting purposes my debt is reckoned to be £10 only.

Which means your still in debt and owe money..... you are 10% short, 10% of 590m is 59m, which is a lot, so if you owe somebody 59m or 590m, why should you be able to go out and spend 100m more on something when you still owe people money and are in debt?... its money you dont have....

(08-08-2013 07:29 )Fernandez Esperenda Wrote:  William nobody likes a smart guy..... Real Madrid are in debt or whatever word you want to call it.

Yes they are. Real Madrid are 124m euros in debt, similar to Arsenal who have 129m euros of debt and also similar to Barcelona who have 131m euros of debt, but a lot less than Man Utd who have 442m euros of debt.

So stop trying to correct people when they say they are in debt .....

(08-08-2013 14:17 )William H Bonney Wrote:  Yes they are. Real Madrid are 124m euros in debt, similar to Arsenal who have 129m euros of debt and also similar to Barcelona who have 131m euros of debt, but a lot less than Man Utd who have 442m euros of debt.

Man United refinanced £178m of outstanding debt, a move that should save it £10m a year in May. The Glazers bought Manchester United in 2005, taking out hundreds of millions of pounds' worth of loans to fund the takeover.
The club still has about £307m in debts, thats about 356m euros.
The club has also spent significant amounts of money on big name signings, including Robin van Persie from Arsenal last year.

The clubs finances continue to be bolstered by TV revenues. In the 2012-13 season, it is reported to have made more than £60m - more than any other club.

The refinancing deal has been struck with Bank of America and means that interest rates on the loans of between 8.75% and 8.38% will be cut to a variable rate. Last year, the club paid about £50m in interest alone.
David Bick, chairman of Square1 consulting, said that the deal meant Manchester United would now be paying off their debts "on more reasonable terms".

He said the club still had "a long way to go" in paying off its debts, but said the Glazers appeared to have made the most of the club's global presence, which has drawn revenue in from places such as East Asia.
"It's a massive global brand, they have extracted commercial income from all corners of the globe," he said.

(08-08-2013 15:35 )Fernandez Esperenda Wrote:  So stop trying to correct people when they say they are in debt .....

Real Madrid are certainly in debt and their debt calculated under UEFA regulations is 124m euros, but not 590m euros as you stated earlier.