Man Utd fans concerned over Ljajic deal rejection

Because of course MUST has no power agenda of its own. Don't make me laugh they are completely transparent, using any excuse to attack the incumbent and brain-wash non finance-savvy fans. Don't get me wrong I would prefer we were not so debt-financed but a lot of the bull talked by people who have no idea what bonds or debentures are is really annoying. Debt-financing has been around a long time (Anyone ever bought a house with cash eh?) and management buyouts and venture capitalist purchases are perfectly normal. It creates a tax shield so what was a cost in terms of corporation tax and dividends plus stock exchange fees has been replaced by a cost of interest and a lower tax bill. In short there is probably not much in it in terms of finance costs. The problem though is simple. Real Madrid's and Man City's irresponsible spending of other people's money has inflated the transfer market so that a Ford of a player suddenly costs Ferrari money. So to buy such players at exorbitant fees (plus wages) would use up too much of the free cash float. Cash is the bloodline of a company so in the middle of a liquidity crisis you don't want to run out of it as getting more finance at acceptable costs at the moment is difficult.

Plus all this rubbish talked about supporters owning Barca and Madrid. That is only just a tax evasion sham. The supporters have no say apart from the spanish equivalent of the old boys network who go for president to massage their egos down at the rotary club. If anyone thinks that madrid had the money to finance their spending they are living in cloud cuckoo land. Despite the liquidity crisis and bank loans for important things like getting the spanish economy going and creating work for the 20% unemployed being practically unavailable, Real Madrid can suddenly borrow ludicrous sums that will never yield a return. In other words any sane bank would not sanction it, but if it is the King's team then a royal lean can do the trick.