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FNN - Buccaneers Owners $1.6 Billion in Debt


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http://www.footballnewsnow.com/2010/buccaneers-owners-1-6-billion-in-debt/

By Chuck Carroll

Football News Now Staff Writer

The Glazer family, owners of the Tampa Bay Buccaneers, are in deep debt. Very deep debt.

A new report by the BBC reveals that the family, which also owns the Manchester United soccer club in England, is now $1.6 billion in debt. That’s billion with a ‘b’.

Per the report, the Glazers have borrowed $570 million against their shopping mall properties as well as an additional $95 million against the Buccaneers.

There has been a growing contingent of European football fans who want the Glazers to sell their beloved soccer team. However, the family recently turned down a $2.2 billion offer for the club and have stated they have no intention of selling.

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How can you get 1.6 Billion in debt? I mean doesn't some one do a credit check on them, before lending them 1.6 Billion? I mean i bought a used pickup truck the other day and then bank wanted the address of my first born.:ols:

It sounds like that is what they owe. They may have multiple billions in assets, but have borrowed against some of them.

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How can you get 1.6 Billion in debt? I mean doesn't some one do a credit check on them, before lending them 1.6 Billion? I mean i bought a used pickup truck the other day and then bank wanted the address of my first born.:ols:

Well, first you borrow 1 Billion dollars and buy yourself the (then) richest soccer club in the world. Two-thirds of that is from banks who charge about 4% interest, the remainder from hedge funds who charge an escalating rate of interest.

That rate is now over 16%.

So you borrow another $ 700 million or so to pay off some of the $ 1 billion you owe - except it's now gone over that because you haven't been keeping up your interest payments. But you don't pay off the hedge funds with their high interest, you pay off the banks, because the banks are starting to get nervous about the debt not coming down, and are setting deadlines for their money to be repaid. That would have been a Bad Thing, because it would mean most of the money you've been paying yourself and your family (tens of millions) will go to the banks instead.

So you get the banks off your back, but now there's another problem - the $ 700 million you just borrowed has an interest rate of 8%.

You get the sense that sooner or later this situation is going to have a messy ending...

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Being in Orlando and getting either the Bucs or Jags games on tv, it is funny to see how empty the stadium is in tampa. Also the secondary market for tickets is a joke. People almost give their tickets away.

Between that and attendace at Rays and Marlins games, Florida sure does support its pro sports franchises.

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The Glazers will be fine. They've got plenty of assets to overcome the debt.

What this debt REALLY means is how it effects them turning their franchises around. The Bucs are rebuilding, and like the Lions and Raiders have shown, sometimes rebuilding, if done poorly, can lead to being stuck in the cellar for years. If they bounce back then Tampa will be once again alive with Pewter Fever.

ManU is a different story. The clubs in England operate as single entities, not subsidiaries or branches as a part of a whole. So ManU is responsible for itself. And in today's Game, you better be able to pay the big bucks for the big name players.

Just to give you an idea, the $100mil contract the Redskins gave to Haynesworth would have been a blip on Europe's list of biggest signings. Over there, you send a team a giant transfer fee (Cristiano Ronaldo set the bar last year, being sold for over $100mil), and that's not even including the CONTRACT for the player. Ronaldo's contract pays him about 200,000 euros a week.

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Between that and attendace at Rays and Marlins games, Florida sure does support its pro sports franchises.

I touched on that topic in the NBA Finals thread over in The Tailgate (although that was mainly on how soft Magic fans are in the Orlando area), but yes, Florida is not a pro sports state at all. The Dolphins have a decent following in South Florida, but that's about it. Florida is really all about the college teams: UF, FSU, and Miami, and it's not even close. You would think that the Gators were Jacksonville's pro football team if you spend any time there during football season.

As for the Bucs- this isn't news to anyone who's followed Tampa for the past few years. A good friend of mine is from Tampa, is a huge Bucs fan, and he said that a couple of years ago, the St. Pete Times wrote a big article on how the Bucs were in the top quarter of the NFL in team payroll up until the Glazers bought Man U, and since then, they've been dwelling near the bottom of the league in payroll.

At the same time, they've increased season ticket prices by up to 40% over the past few years.

So most Tampa fans have known for awhile that the Glazers have been facing some financial issues, likely related to the Man U acquisition. And unfortunately for them, the Bucs have been the franchise to take the biggest hit.

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* Sell the Bucs

* Sell part ownership of the soccer team. They own 51%.

Problem solved.

Problem solved as far as the debts go, but the Glazers aren't interested in paying off the debts, just servicing them. Any money they use to pay off the debt comes out of their own pockets, because their family income comes from ManU, either directly (e.g. in the form of "consulting fees" and dividends) or indirectly (they gave themselves ownership of the team's training ground so the team pays them to train there).

The Glazers will be fine. They've got plenty of assets to overcome the debt.

The problem they have is that while their assets cover the debt, their income is barely matching the interest payments, and that income derives from their sporting interests. Sporting success is not guaranteed, and if ManU start to slip up that could have big repurcussions for the Glazers, and right now they cant afford to invest in the club at the same level as their competitors.

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if you have an asset worth 2.2 billion, and debts of 1.6 billion, that doesnt sound like you are "in dept" to me.

that also didnt include the value of the bucs, which would be something liek 650 million. i'd say the glazers are not eating ramen noodles for dinner.

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if you have an asset worth 2.2 billion, and debts of 1.6 billion, that doesnt sound like you are "in dept" to me.

that also didnt include the value of the bucs, which would be something liek 650 million. i'd say the glazers are not eating ramen noodles for dinner.

A debt is what you owe. You're thinking of insolvency (where you owe more than your assets). The issue isn't that they can't repay the debts by selling one or both of their clubs, it's that the clubs are the only things they have that are making money. If you are a fan of those clubs that is a real problem because the money is going out of the club, to pay the Glazers themselves and to pay interest on what they owe. If you are not a fan then it's not such a big deal :)

Currently the Glazers have borrowed $ 95 million against the Bucs.

Of their 64 shopping malls, 4 have gone bust and a further 28 are in danger. The malls current worth is $ 550 million, but they are mortgaged to the tune of $ 570 million.

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];7567848']The Glazers will be fine. They've got plenty of assets to overcome the debt.

What this debt REALLY means is how it effects them turning their franchises around. The Bucs are rebuilding' date=' and like the Lions and Raiders have shown, sometimes rebuilding, if done poorly, can lead to being stuck in the cellar for years. If they bounce back then Tampa will be once again alive with Pewter Fever.

ManU is a different story. The clubs in England operate as single entities, not subsidiaries or branches as a part of a whole. So ManU is responsible for itself. And in today's Game, you better be able to pay the big bucks for the big name players.

Just to give you an idea, the $100mil contract the Redskins gave to Haynesworth would have been a blip on Europe's list of biggest signings. Over there, you send a team a giant transfer fee (Cristiano Ronaldo set the bar last year, being sold for over $100mil), and that's not even including the CONTRACT for the player. Ronaldo's contract pays him about 200,000 euros [i']a week.[/i]

Man Utd posted a profit of just over £50,000,000 which on paper looks good. However they sold Ronaldo for approx £80,000,000. They would have made a huge loss without the sale of Ronaldo. Man Utd usually spend big and still post huge profits. Since the Glazers bought Man Utd and used the club as collateral they have paid over £250,000,000 in interest payments to service the debt. Man Utd need to invest in the team as some of their star players are nearing the end of their careers but it looks like they will not be able to afford the class of player they are used to. As someone who hates Man Utd with a passion I think the Glazers are doing a good job. :ols:

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As someone who hates Man Utd with a passion I think the Glazers are doing a good job. :ols:

Speaking as a born and bred Liverpudlian, someone brought up in the thick of a rivalry where football is a side issue to the bigger rivalry of two City's a mere 35 miles apart, yet a zillion miles apart in everything from the way we dress, talk, our music, the whole nine yards and then some; a rivalry that makes our dalliances with Dallas look like kindergarten stuff; I wholeheartedly support UK_H's message above.

Long may the Glazers reign in Salford. :D.

Hail.

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Speaking as a born and bred Liverpudlian, someone brought up in the thick of a rivalry where football is a side issue to the bigger rivalry of two City's a mere 35 miles apart, yet a zillion miles apart in everything from the way we dress, talk, our music, the whole nine yards and then some; a rivalry that makes our dalliances with Dallas look like kindergarten stuff; I wholeheartedly support UK_H's message above.

Long may the Glazers reign in Salford. :D.

Hail.

As a Liverpudlian you have your own American owners running a club into the ground (They are doing a fine job as well :D )

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As a Liverpudlian you have your own American owners running a club into the ground (They are doing a fine job as well :D )

Touche Sir, but it's still funny as all heck to see the hysteria down the East Lancs.

Hicks and Gillet are a major problem within the football club, of that there's no question. But what's been one of the biggest is about to take charge of the European Champions, and way too many have blown the American problem out of all proportion and given the Spaniard a free pass all because of one night in Istanbul 5 years ago.

Hail.

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As a new soccer fan attempting to assert my alliances with my adopted team, I would just like to say that Everton is looking to be in real good form right now, and is not owned by Americans who are struggling to maintain their team status quo.

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* Sell the Bucs

* Sell part ownership of the soccer team. They own 51%.

Problem solved.

Not so simple. Nobody wants 49% of manchester united. They either want a controlling stake or they want all of it. You don't invest a billion and a half dollars to have zero say in how your investment is run.

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As for the Bucs- this isn't news to anyone who's followed Tampa for the past few years. A good friend of mine is from Tampa, is a huge Bucs fan, and he said that a couple of years ago, the St. Pete Times wrote a big article on how the Bucs were in the top quarter of the NFL in team payroll up until the Glazers bought Man U, and since then, they've been dwelling near the bottom of the league in payroll.

At the same time, they've increased season ticket prices by up to 40% over the past few years.

So most Tampa fans have known for awhile that the Glazers have been facing some financial issues, likely related to the Man U acquisition. And unfortunately for them, the Bucs have been the franchise to take the biggest hit.

In that case, they should just sell the Bucs. If they've been fielding a good ManU team at the expense of the Bucs, then that just sucks for the Bucs and their fans.

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As a new soccer fan attempting to assert my alliances with my adopted team, I would just like to say that Everton is looking to be in real good form right now, and is not owned by Americans who are struggling to maintain their team status quo.

**** Blues, ALL Blues.

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