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Glazers deny increase in Manchester United's debt
England - 11 September, 2007
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A report issued by Manchester United Supporters Trust said that English Manchester United has an increase in debt of GBP 28 million and that the club is using income from its TV and shirt sponsorship agreement with AIG to pay off its debts.
The Glazer family denied that the club's debts are out of control.
"The story is inaccurate. Nothing has changed," said a spokesman for the Glazer family.
"The debts continue to be comfortably serviced by the business, which is performing better than ever. As always there have been substantial funds for the manager to purchase players over the summer."
Manchester has spent a great deal since the end of last season to recruit Owen Hargreaves, Carlos Tevez, Nani and Anderson, and Sir Alex Ferguson has not been restricted in the transfer market since the Glazers completed their GBP 790 million takeover in 2005.
Manchester fans were hit with a 14 percent increase in ticket prices this season to help subsidize rising salaries to keep star players like Cristiano Ronaldo, Wayne Rooney and Rio Ferdinand at Manchester.
The report claims that the Glazer family "continue to face an extraordinary and growing debt problem".
It states that since last year's refinancing, the club and the Glazers have been faced with "a series of interest rate rises which have increased the annual debt service bill from GBP 62 million a year on the total debt of GBP 660 million.
"The interest bill is currently an annualised GBP 100 million-plus, of which GBP 73 million is payable this year and the other GBP 27 million in the future - a ticking debt time-bomb."
Rumours have surfaced over recent weeks that China and Dubai may be potential buyers for the club, but the Glazers have emphasized that they have no interest in selling and are completely committed to the club.
The Glazer family denied that the club's debts are out of control.
"The story is inaccurate. Nothing has changed," said a spokesman for the Glazer family.
"The debts continue to be comfortably serviced by the business, which is performing better than ever. As always there have been substantial funds for the manager to purchase players over the summer."
Manchester has spent a great deal since the end of last season to recruit Owen Hargreaves, Carlos Tevez, Nani and Anderson, and Sir Alex Ferguson has not been restricted in the transfer market since the Glazers completed their GBP 790 million takeover in 2005.
Manchester fans were hit with a 14 percent increase in ticket prices this season to help subsidize rising salaries to keep star players like Cristiano Ronaldo, Wayne Rooney and Rio Ferdinand at Manchester.
The report claims that the Glazer family "continue to face an extraordinary and growing debt problem".
It states that since last year's refinancing, the club and the Glazers have been faced with "a series of interest rate rises which have increased the annual debt service bill from GBP 62 million a year on the total debt of GBP 660 million.
"The interest bill is currently an annualised GBP 100 million-plus, of which GBP 73 million is payable this year and the other GBP 27 million in the future - a ticking debt time-bomb."
Rumours have surfaced over recent weeks that China and Dubai may be potential buyers for the club, but the Glazers have emphasized that they have no interest in selling and are completely committed to the club.
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