RSS Feed
Twitter
Manchester United fans' worst nightmare is true, the Glazer's debt is pushing the club to financial losses. According to reports from the Guardian, full-year financial results to be revealed by United will show that interest payments outspent player spending in the last financial year.
These new figures will not endear United's American owners to the club's fans.
Detractors of the Glazers have accused the owners of handicapping the club with interest payments on the loan to purchase the club, that are now eating into funds that could be spent on improving the squad.
According to reports from the Guardian, the financial results will show that although the club's operating profits will top £100m, United will still record overall losses as a result of the interest payments as well as one-off costs from the club's £509m bond issue.
The question on the lips of fans will be if the Glazers did take up to £70m from the club's cashflow, to service the £225m in high-interest PIK (Pay In Kind) loans secured against their shareholding in the club.
With the interest rates on the PIK loans increased to 16.25% in August, fans fear that the current borrowing paterns of the Glazers will mean that there will be less for manager Sir Alex Ferguson to spend to the squad, and the effects have already been seen this summer, as United spent on potential rather than proven talent in the form of Javier Hernandez, Chris Smalling and Bebe for a combined total of €26.8m last summer.
United is also preparing for further protests from the Manchester United Supporters' Trust when the financial results are announced, and their protests have begun to hurt the club's bottom line as chief executive David Gill admitted that United were 2,200 season tickets short of its 54,000 target in the summer following calls for a boycott.
It remains to be seen how fans will react after the announcement of these financial results, but it can be certain that with the ongoing Liverpool ownership saga still unfolding at Merseyside, the Glazers will be even more unpopular than ever at Old Trafford if the team fails to measure up to the same standards of success as before.
These new figures will not endear United's American owners to the club's fans.
Detractors of the Glazers have accused the owners of handicapping the club with interest payments on the loan to purchase the club, that are now eating into funds that could be spent on improving the squad.
According to reports from the Guardian, the financial results will show that although the club's operating profits will top £100m, United will still record overall losses as a result of the interest payments as well as one-off costs from the club's £509m bond issue.
The question on the lips of fans will be if the Glazers did take up to £70m from the club's cashflow, to service the £225m in high-interest PIK (Pay In Kind) loans secured against their shareholding in the club.
With the interest rates on the PIK loans increased to 16.25% in August, fans fear that the current borrowing paterns of the Glazers will mean that there will be less for manager Sir Alex Ferguson to spend to the squad, and the effects have already been seen this summer, as United spent on potential rather than proven talent in the form of Javier Hernandez, Chris Smalling and Bebe for a combined total of €26.8m last summer.
United is also preparing for further protests from the Manchester United Supporters' Trust when the financial results are announced, and their protests have begun to hurt the club's bottom line as chief executive David Gill admitted that United were 2,200 season tickets short of its 54,000 target in the summer following calls for a boycott.
It remains to be seen how fans will react after the announcement of these financial results, but it can be certain that with the ongoing Liverpool ownership saga still unfolding at Merseyside, the Glazers will be even more unpopular than ever at Old Trafford if the team fails to measure up to the same standards of success as before.
espn::
0 comments:
Post a Comment