UNTOLD ARSENAL » Blog Archive » Manchester U finances just get worse and worse
There’s bad news and then there’s even worse news for our dear old chums at Manchester Bankrupt.
There is a thing called base rate – interest rates are worked out on that. It stands at 5%, which means that your mortgage costs you a bit more than that – maybe 7%.
So it is with interest that we note that Manchester Bankrupt are paying… wait for it… 14.25% a year interest on the loans for which they have failed to pay the interest.
According to the Guardian today Manchester Bankrupt have run up a $150m bill on the loans whose interest is accruing at 14.25% a year.
No wonder they want a buyer. Especially when, at the same time, we find out that…
The US Federal Reserve, took over AIG, the sponsors of the Bankrupts, by generously giving them a nifty $85 billion (that’s $85,000,000,000 just to be clear and not risk misleading anyone). It has now said, as predicted here, that it won’t “consider sports sponsorship a core activity.”
This is such a contrast with Arsenal which has its loans as a mortgage at normal mortgage rates, and as such the club is not suffering one spot from the collapse of the capitalist system. (I shall be buying my tickets next week on the basis of barter – starting offer is two cabbages and a turnip – but I will be willing to raise the bid if necessary.)