Sources of Finance - ManUtd Look to Change their Formation

Perhaps not the best day to recommend a resource about Manchester United (after they were humbled by the mighty Leeds United), but this piece in the Times is excellent for more advanced students considering issues such as high gearing and the appropriateness of bank debt.  The complex structure of the original deal to purchase the Club has left the Glazer family with a bit of a headache.  The business is said to owe about £700m to banks, financial institutions and hedge funds - with some of the interest due not having been paid.  So Man Utd are said to be looking at a bond issue as a way of replacing expensive debt with cheaper debt.  The impact of high gearing is illustrated by the proportion of operating profits which are used to finance interest payments currently.

Revision game - basic ratio analysis [29 Jul 2011]
Lesson Worksheet - Financing Business Growth [16 Jul 2010]
Revision Presentation - Balance Sheet Basics [30 Jan 2010]
Q&A - Is there an optimal level of gearing? [5 Jan 2010]
Q&A - What is gearing? [5 Jan 2010]
Revision Quiz - Gearing [5 Jan 2010]
T2U and the Theatre of Dreams [3 Nov 2009]
Foldio - A cool way to teach Venture Capital [8 Oct 2009]
Video case study - football shirt sponsorship under pressure [25 May 2009]
Sources of finance: PLCs turn to their shareholders [11 May 2009]
AIG ends Manchester United sponsorship deal [23 Jan 2009]
Credit crunch gets personal for small business owners [2 Apr 2008]

BUSINESS TEACHER RESOURCE NEWSLETTER
Get first news of business teaching resources, ideas and other materials from tutor2u. Over 9,400 business teachers from the UK and around the world receive our regular teacher email newsletters. Sign up for free here!