Wednesday, 4 July 2012

The Glazers take control...........

The owners of  Manchester United F.C. have decided to 'move' the company to the Cayman Islands and float the company on the New York Stock Exchange.  The obvious reason for doing this is to raise more money.  American investors will purchase shares in Manchester United in the hope of gaining a good return on their investment.  Of course the money that the Glazers earn from this will be subject to Cayman Island Tax Law.  Now I am no expert, but isn't the reason they used the Cayman Islands is to avoid tax?
The next thing to consider is that out of all this money that the Glazers are going to earn, how much of it is likely to be invested in players?  On recent showings - not much, or none at all.  What did they do with the money they got from the sale of Chritiano Ronaldo?  They paid off a tax bill.
I am not a Man. Utd. fan, in fact I think that it is vaguely funny that a team that has been 'sticking it' to others for so long, might be about to get some of it's own medicine, and the chief architects are going to their own board.
Schadenfreude at its best!

1 comment:

  1. Apparently, according to a newspaper article I have just read, the reason the Glazers give for floating on the New Yotk Stock Exchange is that the £425m debt is affecting the ability of Manchester United to compete.

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