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Critics slam United interest bill
Published : 11 Jan 2010 18:17:59Rss feed
Manchester United's anti-Glazer faction have claimed the controversial owners have landed the club with a £260million interest bill since they took control in 2005.
The staggering sum includes the £41.9million paid out in interest in the year to June 2009, which contributed to turning what would have been a huge profit of £91.3million into a 'mere' £48.2million - a sum bolstered by the world-record £80million transfer fee received from Real Madrid for Cristiano Ronaldo.
The Manchester United Supporters' Trust (MUST), who are regular critics of the Glazer family, have responded in predictable fashion. "Most supporters have had enough," said MUST chairman Duncan Drasdo.
He continued: "Under their ownership the club has become liable for more than £260million in interest payments alone and the latest trading statement would have shown a substantial loss were it not for the sale of Ronaldo.
"The day the Glazers put the club up for sale you can expect celebration on the streets of Manchester."
While as a pure day-to-day business, United are more streamlined and profitable than any club in the world, their financial model is dragged down by the huge costs incurred when the Glazers completed their £790million buyout.
United's announcement was accompanied by confirmation they intend to raise £500million in bonds to clear the club's loans.
It is thought the bond will be secured on most of the club's assets but not their impressive Carrington training ground.
Tellingly, it is also being suggested that United would also be able to use up to 50% of their cashflow to pay a dividend to the Glazer family. That would provide an opportunity to repay payment-in-kind (Pik) loans lodged against the Glazer family that carry interest of 14.25%.
In addition, United are entering into a new revolving credit facility to allow the club to borrow an additional £75million, which could be used to help buy players.
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