Highly leveraged clubs certain to go bankrupt? (FM09)

Noticed this with Man Utd, where their debt repayments exceed 7mil every month, ie its extremely hard to make a profit on a monthly basis. Hence, provided they win all competitions (EPL, FA, League, Champs) it's almost certain they have to either sell players to raise cash and cut the wage bill or find a sugar daddy, else it's curtains for them.

Even with Utd's massive marketing power their interest and debt repayments are 2.5 times their merchandising income (over the 6 mth period in the demo) NOT including sponsorships, and that sponsorships account for 30mil of income in 2009 (from the finance tab), there will still be a shortfall of at least 20 mil even if the rest of the books balance ie wages and other costs < gate receipts, season tickets and other income.

Hence it is reasonable to assume that due to Utd's debts they will inevitably go into decline being forced to sell its stars and buy cheaper players over the long term.

Has anyone else noticed this with Utd or other clubs with big debts?

I can't see it myself as the amount they are in debt by is growing and has been for many many years, if this was going to cause them to go into admin in any way whether it being the 10 point deduction or only as far as selling their top players then it would have been done by now! Add's more reason to people saying it's a "disastrous" season when they win nothing cos they have lost out on alot of money to help pay off the debts!

weeee i love it when the news ticker flashes "***** in financel trouble"

now ill get ronaldo for £20mill instead of £131mill

i think all the money for winning stuff i.e. the prem, has gone up as irl, so as long as they do well they should be fine

So its safe to assume that the chairman will extend loans ad infinitum to keep them from bankruptcy in game?

In real life i think Utd and Liverpool are in far thicker soup than they let up on

i think all the money for winning stuff i.e. the prem, has gone up as irl, so as long as they do well they should be fine

But since there can be only one winner for the EPL, Champs league ...etc, it's reasonable to assume that either Liverpool or Utd will go under at some point in time?

But since there can be only one winner for the EPL, Champs league ...etc, it's reasonable to assume that either Liverpool or Utd will go under at some point in time?

its possible but in the prem the money they get is astronomical for finishing 4th never mind winning