Lord Sugar Admits Fears Over United And Liverpool Debt

[Jockstar]

Lord Sugar admits fears over United and Liverpool debt

By Harry Harris, Football Correspondent

October 1, 2010

Lord Alan Sugar has delivered a biting analysis of the financial state of global giants Manchester United and Liverpool.

• Lord Sugar: Why I would never buy another club

Lord Sugar: Owned Tottenham Hotspur from 1991 to 2001

Lord Sugar, who headed the Labour Government's taskforce on business affairs, forecast a doomsday scenario for both elite clubs and the former Spurs chairman also had his say on the controversial issue of foreign owners.

''If you are asking me if foreign owners are good for football then I would have to split them into two categories,'' Lord Sugar told ESPNsoccernet. "There is Roman Abramovich and that bloke from the Middle East [sheikh Mansour bin Zayed al Nahyan at Manchester City]. To a certain extent [Fulham's] Mohammed Al-Fayed and, although I was not a foreign owner, I would include myself in this category of owners who use their own money to buy football clubs.

"How can you say anything about these foreign owners? Roman Abramovich is passionate about Chelsea and football and he is putting up the money to buy the best players in the world, and now Manchester City are doing the same. Yes, it might be unfair to everyone else, but that's life, and it hasn't done much harm to their football clubs, now has it?

"But there is another type of foreign owner: The Glazers and those guys at Liverpool, Hicks and Gillett. Now, I am sorry to have to say this, but they are done. They are gone. They have big problems ahead.

"When you buy big clubs like Manchester United and Liverpool without using your own money and lumber the club with enormous interest repayments on the debt, then you are asking for problems, and both clubs have got them."

Manchester City posted the second highest one year loss on Friday (at £121 million), with Abramovich's Chelsea the top of the list in 2004-05 (at £141 million), but as Lord Sugar maintains it is meaningless in terms of the clubs' business plan, as they are supported by their owners own cash.

"Reckless lending caused the demise of the banking industry throughout the world, and banks were irresponsible in lending to these guys to enable them to buy such big football clubs,'' he said. "They have used the club as an asset against the loans and that has resulted in big interest repayments on the debt.

"Here's the bad news: One day the Glazers, the Gilletts and Hicks's will find its payback time and, when that day comes, if they haven't got the money, they default, and it's a nightmare scenario for the clubs.

"A bank somewhere is going to own the football club and hope desperately that some investor will take over the debt. But why would they? I wouldn't. Absolutely not. Football is not good business. An electrical company, a food chain, yes, why not, but football, you've got to be joking.''

With his own experiences of owning Tottenham behind him, Lord Sugar has nothing but fear for United and Liverpool's current situation.

"Manchester United is funding £50 million a year in interest repayments with a debt of £700 million plus,'' he said. ''If it didn't then that £50 million a year would be spent on players and the club. Same at Liverpool, £40 million a year on interest repayments. That leaves me really, really worried for those clubs.

"What a great institution Liverpool is, what a great football club, but my forecast is that the owners will inevitably default on their loans, it puts the bank in an embarrassing position, and the bank will write off a large chunk of the debt to make it viable for an investor to step in and take it over.

"Liverpool don't need to build a stadium straight away, that's not the priority, the priority is to find the right business model to enable it to buy players and stay where they are, and challenge for the top four places. To do that they need to wipe their debts clear of the bank.''

Lord Sugar cites the example of Leeds United, who dropped to League One because of their financial problems as a warning from the past, but thinks that history could repeat itself.

"It would be an unbelievable travesty if Liverpool would slip away like Leeds and end up in the second division,'' he said. ''That will happen if they are not careful. Manchester United have more time, the Glazers have given themselves more breathing space as their loans are not up until 2016.''

Manchester United fans have protested strongly against the Glazer regime

However, he does not believe that the Red Knights' bid to save United from the Glazers is the answer to their problems.

"This Red Knights fiasco, well that is rubbish,'' he said. ''Supporters might have passion and love their club but it would be out of the frying pan into the fire, with other debts to the banks, as I doubt whether it will be their own money.

"It's all very well saying the Glazers are horrible people with no passion and they borrowed far too much money, but the Red Knights are not the answer.

"I can see the Glazers selling up and they must be waiting until the world economy improves or some mad Russian or Chinese comes along and gives them £2 billion for the club. I cannot believe they turned down £1.5 billion, as they would love to get themselves out of their debt, I am sure.

"They realise now that whatever prompted them to buy Manchester United they got it wrong, They need to find someone with many billions to spare who just wants to own Manchester United."

• What You See Is What You Get: My Autobiography by Alan Sugar is out now, published by Macmillan, £20 hardback

[Englander]

I think the Glazers and Hick's of this world are just great, with the help of their bankster friends theyve made the Premier League far more competitive, its only due to the mineral wealth of Russia and Abu Dhabi that their fantastic work of making it a more even competition hasnt been noticed!

[mrbojangles]

He talks a lot of sense.

I would love for United to go bust and end up in the same position as Leeds found themselves. But that's just my unbiased opinion

As for Liverpool. I've no axe to grind with Liverpool and really hope they get themselves out of this situation.

[bkkjames]

He talks a lot of sense.

I would love for United to go bust and end up in the same position as Leeds found themselves. But that's just my unbiased opinion

As for Liverpool. I've no axe to grind with Liverpool and really hope they get themselves out of this situation.

Us going bust would be the only way of you blokes actually filling your stadium on a consistent basis.

[StevieH]

alan sugar's a blowhard gobshite.

[mrbojangles]

He talks a lot of sense.

I would love for United to go bust and end up in the same position as Leeds found themselves. But that's just my unbiased opinion

As for Liverpool. I've no axe to grind with Liverpool and really hope they get themselves out of this situation.

Us going bust would be the only way of you blokes actually filling your stadium on a consistent basis.

We get excellent crowds week in, week out and all local supporters. So don't worry about us having to fill the stadium with coach loads of cockney, irish and canadian Man Unitred supporters

[bkkjames]

Yea you just fly them in from abu dhabi etc.

[nev]

He talks a lot of sense.

I would love for United to go bust and end up in the same position as Leeds found themselves. But that's just my unbiased opinion

As for Liverpool. I've no axe to grind with Liverpool and really hope they get themselves out of this situation.

Us going bust would be the only way of you blokes actually filling your stadium on a consistent basis.

We get excellent crowds week in, week out and all local supporters. So don't worry about us having to fill the stadium with coach loads of cockney, irish and canadian Man Unitred supporters

What a load of crap you cannot give tickets away,33,000 against juve in your biggest european night in years,offering 3 tickets for 3 europa games at eastlands for 50 quid and still cannot get a reasonable attendance you had 12,500 empty seats.

As for all local yeah right,you have many out of town supporters every club has.how about the banners at eastland, one this is our city cheadle blues,you could not make that one up also seen glasgow blues, yorkshire blues.

Manchester is red,is and always will be no matter how much cash you splash around anyone saying differently is a deluded blue.

[JacknDanny]

He talks a lot of sense.

I would love for United to go bust and end up in the same position as Leeds found themselves. But that's just my unbiased opinion

As for Liverpool. I've no axe to grind with Liverpool and really hope they get themselves out of this situation.

Us going bust would be the only way of you blokes actually filling your stadium on a consistent basis.

We get excellent crowds week in, week out and all local supporters. So don't worry about us having to fill the stadium with coach loads of cockney, irish and canadian Man Unitred supporters

What a load of crap you cannot give tickets away,33,000 against juve in your biggest european night in years,offering 3 tickets for 3 europa games at eastlands for 50 quid and still cannot get a reasonable attendance you had 12,500 empty seats.

As for all local yeah right,you have many out of town supporters every club has.how about the banners at eastland, one this is our city cheadle blues,you could not make that one up also seen glasgow blues, yorkshire blues.

Manchester is red,is and always will be no matter how much cash you splash around anyone saying differently is a deluded blue.

Manchester has NEVER been red, nev!! And you know it!!

Its like League of Nations your fan base

[StevieH]

isn't it salford that is red?

[nev]

We get excellent crowds week in, week out and all local supporters. So don't worry about us having to fill the stadium with coach loads of cockney, irish and canadian Man Unitred supporters

What a load of crap you cannot give tickets away,33,000 against juve in your biggest european night in years,offering 3 tickets for 3 europa games at eastlands for 50 quid and still cannot get a reasonable attendance you had 12,500 empty seats.

As for all local yeah right,you have many out of town supporters every club has.how about the banners at eastland, one this is our city cheadle blues,you could not make that one up also seen glasgow blues, yorkshire blues.

Manchester is red,is and always will be no matter how much cash you splash around anyone saying differently is a deluded blue.

Manchester has NEVER been red, nev!! And you know it!!

Its like League of Nations your fan base

We do not call city fans liars for nothing!

You can argue all you want i am from manchester area i grew up in manchester i know the score,yes we have our out of town support but we embrace our out of town support.

We do not hide our out of town support like city do are you ashamed that you have supporters too from outside manchester? then why do you claim they do not exist and every one in manchester is a blue.

Name me 3 areas that are blue in manchester?

[nev]

isn't it salford that is red?

Yes stevie salford is red indeed.

[mrbojangles]

Touched a nerve there eh nev. You keep on being in denial mate, one day you might even convince yourself.

[mrbojangles]

What a load of crap you cannot give tickets away,33,000 against juve .

Oh and by the way, there were 35,212 which isn't bad for a team that gives it's supporters a choice in the games they go to watch. Unlike your robbing lot, who deduct money from your supporters credit cards for every cup round of every competition. <deleted>, we could all get capacity crowds doing that underhanded, daylight robbery. Go on nev, I dare you to defend that policy. Cos if you do, you will be the ONLY United fan I know who thinks it's right.

[nev]

Touched a nerve there eh nev. You keep on being in denial mate, one day you might even convince yourself.

Not really just you lot tel a lie keep repeating it and you all start to believe it.

[nev]

What a load of crap you cannot give tickets away,33,000 against juve .

Oh and by the way, there were 35,212 which isn't bad for a team that gives it's supporters a choice in the games they go to watch. Unlike your robbing lot, who deduct money from your supporters credit cards for every cup round of every competition. <deleted>, we could all get capacity crowds doing that underhanded, daylight robbery. Go on nev, I dare you to defend that policy. Cos if you do, you will be the ONLY United fan I know who thinks it's right.

None of us think it is right,in fact one of the reasons a lot of my mates have jacked it in.

As for your attendance why as you lot state are the only team from manchester,where everyone is a blue cannot sell out against juve it was your biggest european night since the 70s.

And how many of your 35,000 was freebies?Its not the point bringing uniteds ticket policy into it we know they are robbing bastards,its mighty city with empty blue seats,when you lot state that you have that many blues in manchester that no one is a red.

[mrbojangles]

its mighty city with empty blue seats,

35,000 attendance on a wet and windy thursday night when it was also being shown on TV, in the early games of any cup, is NOT a bad attendance figure nev, no matter what you think.

[Englander]

its mighty city with empty blue seats,

35,000 attendance on a wet and windy thursday night when it was also being shown on TV, in the early games of any cup, is NOT a bad attendance figure nev, no matter what you think.

Id agree its a decent enough attendance for whats a bit of a non event of a competition especially at this stage, but Citeh couldnt sell all their tickets last Sunday.

[MSingh]

We get excellent crowds week in, week out and all local supporters. So don't worry about us having to fill the stadium with coach loads of cockney, irish and canadian Man Unitred supporters

Without being pedantic, but the Cockney Red think is absolute b*llocks..

I'm a Cockney, Born & Bred & i don't know 1 other Cockney that in Man Utd..

They'd have been beated to <deleted> in the School Playground if they were fo starters..

[Englander]

We get excellent crowds week in, week out and all local supporters. So don't worry about us having to fill the stadium with coach loads of cockney, irish and canadian Man Unitred supporters

Without being pedantic, but the Cockney Red think is absolute b*llocks..

I'm a Cockney, Born & Bred & i don't know 1 other Cockney that in Man Utd..

They'd have been beated to <deleted> in the School Playground if they were fo starters..

But i bet at your school there werent any kids that came out as being gay, they waited until they were a bit older before coming out .... much like being a Man U fan from London.

[carmine]

We get excellent crowds week in, week out and all local supporters. So don't worry about us having to fill the stadium with coach loads of cockney, irish and canadian Man Unitred supporters

Without being pedantic, but the Cockney Red think is absolute b*llocks..

I'm a Cockney, Born & Bred & i don't know 1 other Cockney that in Man Utd..

They'd have been beated to <deleted> in the School Playground if they were fo starters..

But i bet at your school there werent any kids that came out as being gay, they waited until they were a bit older before coming out .... much like being a Man U fan from London.

Interesting comparison you make englander.

[cardholder]

He talks a lot of sense.

I would love for United to go bust and end up in the same position as Leeds found themselves. But that's just my unbiased opinion

As for Liverpool. I've no axe to grind with Liverpool and really hope they get themselves out of this situation.

Us going bust would be the only way of you blokes actually filling your stadium on a consistent basis.

We get excellent crowds week in, week out and all local supporters. So don't worry about us having to fill the stadium with coach loads of cockney, irish and canadian Man Unitred supporters

I wasn't aware that being a resident of a particular city was a pre-requisite for spectating.

[mrbojangles]

I wasn't aware that being a resident of a particular city was a pre-requisite for spectating.

Nobody has said you need to be a resident, to be a spectator.

[cardholder]

I wasn't aware that being a resident of a particular city was a pre-requisite for spectating.

Nobody has said you need to be a resident, to be a spectator.

That was not the way I read post #6

[mrbojangles]

I wasn't aware that being a resident of a particular city was a pre-requisite for spectating.

Nobody has said you need to be a resident, to be a spectator.

That was not the way I read post #6

Then I suggest you read it again.

[nev]

I wasn't aware that being a resident of a particular city was a pre-requisite for spectating.

Nobody has said you need to be a resident, to be a spectator.

That was not the way I read post #6

Mate you are wasting your breath arguing with a city fan,they live in there own little world where everyone supports city and everyone who goes to there ground to watch them is a 100% manc.

Even though on a city web site blue moon.they had a thread about what percentage of the class supported united,the majority said 70% they wanted to shut the thread down because it dispelled the myth there are no reds in manchester the thread went on for 9 pages.

[nev]

edited double post.

Edited October 8, 2010 by nev

[mrbojangles]

Mate you are wasting your breath arguing with a city fan,they live in there own little world where everyone supports city and everyone who goes to there ground to watch them is a 100% manc.

When we get as arrogant as you lot, I'll start to worry. Now, tell me what is wrong with what I have said and where I have argued. All I said was to read the post he mentioned again. Clue #1 (cos it looks like you both need one) there is a distinct difference between a "spectator" and a "supporter" and no one has mentioned anything about your place of residence having anything to do with anything.

Even though on a city web site blue moon.

For a City hater, you don't half like visiting City orientated forums. Me thinks you might be on the change and getting ready to switch. Resistance is futile.

[nev]

Mate you are wasting your breath arguing with a city fan,they live in there own little world where everyone supports city and everyone who goes to there ground to watch them is a 100% manc.

When we get as arrogant as you lot, I'll start to worry. Now, tell me what is wrong with what I have said and where I have argued. All I said was to read the post he mentioned again. Clue #1 (cos it looks like you both need one) there is a distinct difference between a "spectator" and a "supporter" and no one has mentioned anything about your place of residence having anything to do with anything.

Even though on a city web site blue moon.

For a City hater, you don't half like visiting City orientated forums. Me thinks you might be on the change and getting ready to switch. Resistance is futile.

Never been on a city forum mate,the link was posted up on a united forum they found it very comical city fans destroying there own myth.

[mrbojangles]

Never been on a city forum mate,the link was posted up on a united forum they found it very comical city fans destroying there own myth.

Thou doth protest too much, nev. Just like your sig, referencing City. The RAGS are not worthy of a mention in my limited amount of signature space. But if it helps you overcome your denial, carry on slagging us off all time.