Chapter 492: Financial Catastrophe
Murphy's Law: 1. Everything is not as simple as it seems; Two, everything will take longer than you expect; 3. Things that go wrong will always go wrong; Fourth, if you're worried about something happening, then it's likely to happen.
If Murphy's Law could be summed up in one sentence, it would be: bad things always follow.
The opening win over Chelsea was a surprise just when everyone thought United would emerge from the shadow of that incoming crash. And this time it's about the survival of the 150-year-old club.
On this day, Liu Yun returned home after a day's training. After teasing Xiao Coke for a while, he cooked an authentic Chinese dinner.
Isabella once said to Eevee's wife Helena: The biggest advantage of marrying Liu Yun is that you can eat delicious Chinese food every day.
Since marrying Liu Yun, Isabella's weight has skyrocketed from 60 kilograms to 75 kilograms. She is 1.8 meters tall and is now a standard busty lady.
The family was eating, and Liu Yun suddenly received a call from Pogba: "Hey, old lieutenant, turn on the BBC channel!" Manchester United... Rough this time! β
Pogba is a goofy guy who likes to be alarmist. Liu Yun didn't take it seriously. He walked to the living room, turned on the TV and tuned to the BBC channel:
"At 2 p.m. local time on the 14th, the U.S. Treasury Department's special investigation team arrested Afram in New York. Glazer. As we all know, Afram Glazer owns Zapata, Edgeton Investments, the NFL's Tampa Bay Islands and the Premier League club Manchester United. It is reported that the US Treasury Department's special investigation team arrested Afram Glazer on charges of financial fraud. According to people familiar with the matter, Afram Glazer is suspected of carrying out a Ponzi scheme scam in binary options trading, involving up to $30 billionγγγγγ β
Liu Yun was stunned for a moment. Glazer Jr. is the owner of Manchester United. Now that the owner has been arrested, will it have a huge negative impact on Manchester United?
Could it be that this is the great tribulation that the gypsy goddess spoke of?
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A day later, the Glazer family began selling off all of their corporate stocks on the New York Stock Exchange in exchange for money to fill the binary options trading hole. This naturally includes Manchester United shares.
During the year, Manchester United's results improved dramatically. Coupled with the Glazer family's use of some tricks in the stock market, Manchester United's share price can be said to have skyrocketed, from $18.25 a year ago to $34 per share. No one can say how much bubble there is.
The butterfly effect exists in meteorology, and naturally in finance.
The Glazer family, Manchester United's largest shareholder, took the lead in selling Manchester United shares without restrictions, and for a time, Manchester United shares on the New York Stock Exchange plummeted. Glazer Jr. was arrested on the 14th. At the close of trading on the 15th, Manchester United's share price plummeted from $34 to $18, a drop of nearly 50%!
Blessings are incomparable, and disasters are not singular. Another insider broke the news to the Wall Street Times that Glazer Jr. falsely reported the earnings of Manchester United Club last year in order to achieve the purpose of raising Manchester United's stock price. Manchester United's share price is on a rollercoaster ride down the runway.
Thousands of miles away in Manchester.
Manchester United chairman Woodward sat behind his desk with his head covered.
The Glazer family took over Manchester United, although they promised to delegate the club's administrative powers to the club's chairman. But they sent a confidant to be the CFO (chief financial officer), and all the accounts and capital flows of Manchester United were in the hands of the CFO. Woodward doesn't even know how much money United made or lost last year.
Now Manchester United's share price has plummeted, and it is not known how much it will continue to fall tomorrow. Manchester United, a 150-year-old club, is going to be ruined on the New York Stock Exchange?
At present, rumors are rife, and some people even say that Manchester United will not escape the doom of bankruptcy this time.
The more Woodward thought about it, he went to the wine cabinet, poured himself a glass of whiskey, and took a sip to suppress his shock.
Assistant coach Bart walked into Woodward's office: "This group of terrible vampires is parasitic on Manchester United like moths, and this time it can be regarded as draining Manchester United's blood!" β
Woodward looked at Bart. He knew that Bart hated the foreign bosses of the Premier League the most. Think of them as bastards who suckle the wool of traditional English football clubs. Woodward also advised Barthes more than once: "The globalization of capital is the trend of the times." β
Now, Bart's words are unfortunately true, Manchester United... This time it's really going to be ruined at the hands of the little Glazer family.
Now what? Do you want to watch this 150-year-old European giant go bankrupt? Woodward took another sip of whiskey.
No, never! This 150-year-old club must not be ruined in my hands!
Woodward called his friend, Clinman, the owner of Manchester's largest accounting firm.
Bankruptcy, to put it bluntly, is insolvency. Manchester United have huge loans from four of the UK's largest banks. Once the total share price falls below the amount of debt, Manchester United can only declare bankruptcy.
Woodward now asks Kleeman's accounting firm to help him figure out how far Manchester United's share price will fall and it will go bankrupt. How much money is needed to raise the stock price above the bankruptcy line.
Kleeman's accountants settled in for United that afternoon.
In the evening, they gave Woodward a number: $15.8. For the time being, Manchester United's share price has not fallen to the bankruptcy line.
However, at the close of the next day, Manchester United's share price plummeted to $13.1. Rising above the bankruptcy line would require $150 million in capital to buy Manchester United shares.
At the close of the third day, Manchester United's share price fell to $8.73. It would take $420 million to rise above the bankruptcy line.
The Manchester court sent a letter to Woodward, stating that within three days, if Manchester United's share price does not rise above the bankruptcy line, the court will initiate bankruptcy protection proceedings.
When Woodward saw the letter from the City of Manchester Court, he sat down in his chair in despair.
Now $420 million is needed to enter the NYSE and buy Manchester United shares. Perhaps tomorrow this number will continue to expand. Manchester United is like a broken ship leaking in the financial markets, who will come in at this time to save Manchester United?
Woodward's head is big. If the court initiates bankruptcy protection proceedings for Manchester United, Manchester United will no longer be able to borrow money from banks. At the same time, it means that United can no longer afford to pay the high wages of their players. Unable to pay wages, but deemed a breach of contract by the club, the players are free to leave the team... If it really comes to that point, Manchester United, a century-old giant, will really be finished!
That's when Mourinho knocked on the door of Woodward's office.
Jose Mourinho got straight to the point: "My Excellency, President. I, as a manager, don't have the right to intervene outside of the game. But now rumors are spreading outside, and the players are panicking. They have no intention of preparing for Sunday's game against Everton. Can you give me a word of approval, Manchester United... Will it go bankrupt? I'm also going to give my players a reassurance. β
Woodward stared at Mourinho for a long time before telling Mourinho that another $420 million would now be needed to pour into the NYSE to buy shares in Manchester United to save Manchester United from bankruptcy. Of course, by tomorrow, that number will expand.