Glazers’ £4bn value of Man Utd justified due to what buyer must pay off

If the fans get their way, any potential new owner of Manchester United must be prepared to carry the burden of hefty costs.

Supporters in hundreds stormed the Old Trafford gates and pitch on Sunday, forcing a postponement of the Liverpool game as they rallied against the current American key holders the Glazer family.

United's proposed involvement in the European Super League sparked the uproar on this occasion but fans have been dismayed at the running of the club since the Glazers arrived in 2005.

The Glazers insist they are staying after putting an enormous £4billion price tag on the Red Devils.

It is a shocking figure at first, but when you run the numbers it is surprisingly justifiable.

If any person or company is daring enough to meet the Glazers' demand for billions, they must have a tax and interest wallet prepared to take a big hit.

The Glazers purchased the club for £790million in a leveraged buyout manoeuvre that consisted of £600million in bank loans.

This saw the interest on those loan payments sky rocket to £100million each year at a rate of 14.25 per cent and totalled £837million by the end of 2019-20.

Since then, banks have earned about 80p for every net £1 spent in the transfer market by United.

To ease the pressure, the Glazers floated the club on the New York Stock exchange when the club was considered less of a risk to renegotiate lending rates. This is where the valuation of billions comes in.

United have two classes of shares labelled A and B. The A class is traded on the stock market while the B classes are owned by the Glazers for majority control. At present, each share is worth £2.1billion.

To persuade the Glazers to sell, The Times suggest the buyer must pay a premium so £3billion is a realistic bid for a takeover, while lenders may invoke a charge-of-control clause that would boost it up to the £4billion the Glazers want.

United's share's have underperformed since 2012 leaving any prospects for new ownership uncertain.

Jim O'Neil, a successful banker and United fan, may renew his interest from a proposed takeover in 2010, which would be seen as ideal for the frustrated fans.

The German model of 50+1 ownership by fan groups is a current popular choice that gives fans a voice in boardrooms.

But unless this is a motive supported by the FA and government legislation, it remains to be seen if the fans on the Old Trafford pitch will get their wish.

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