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Manchester United hit by 54m charge over controversial 500m bond issue

24 Jan 2010 01:42:11

Manchester United hit by 54m charge over controversial 500m bond issue

Manchester United's controversial bond issue has cost the Premier League champions £54m, according to the The Sunday Times. As part of the £500m in funds raised by United last week, the club had to pay £15m in fees and expenses to investment  bankers and lawyers, the newspaper said. Sign of the times: Fans protest during United's 4-0 victory over Hull which moved the club back to the top of the Premier League The club had also taken a £39m hit from the unwinding of  interest rate hedging arrangements on the debt that has been refinanced by  the bond.. Although the Glazer family, the American leisure tycoons who bought the  club in 2005, have managed to defer payment of some liability, the club is still paying £11m of it up front. News that the bond issue has cost United so much will further upset fan  groups after it emerged last week the club is saddled with rising debt  partly due to high interest payments. Debts at parent company Red Football Joint Ventures Limited hit 716.5  million pounds in the year to June 2009, its accounts showed. Net interest  for the period was £68.5m. True colours: United fans wear green and gold - the colours when the club were formed as Newton Heath On Saturday supporters demonstrated outside Old Trafford before the 4-0  Premier League victory over Hull City that saw United regain top spot in  the standings. Fans were chanting "Glazers Out" even after Wayne Rooney  opened the scoring. United manager Alex Ferguson used his programme notes to appeal for unity  in the face of the financial pressures facing the club and the opposition  from fans to the Glazers. "The family of Manchester United is under pressure as a result of all the  issues and controversies surrounding the ownership and financial situation  of our club that have been stirred up in the media," Ferguson wrote. "Everyone is entitled to their opinion and to express their disapproval if  they don't like what they see around them, just as it has always been the  right of fans to let it be known if they are not happy with the way their  team are playing. "I'm not slow to express disapproval myself if there is something I don't  agree with, even in the boardroom with the directors, but once I walk out  of the meeting I get on with my job as manager of the team." Ferguson recognised there was discontent among some fans but stressed the  importance of maintaining focus. "Some of our fans are clearly unhappy with the financial position but we  mustn't allow the situation to become divisive."  Manchester Utd 4 Hull City 0: Four-some Rooney sends United back to the top of the table Real deal! Manchester United striker Wayne Rooney on Madrid's radar GARY LINEKER: Arsene Wenger can bury the myth that to be champions you have to spend millions  Explore more:People:Wayne Rooney, Alex Ferguson


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