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Glazers to 'repay' £200m of United debt.

Xherdan

By Xherdan,
in FF - Football Forum

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Xherdan Veteran

Xherdan

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Sky Sports | Football | News | Glazers to pay off PIK loan

 

 

Manchester United owners the Glazer family are reportedly ready to pay off £220million of debt.

 

According to a voluntary free-payment notice, the Glazers' holding company Red Football Joint Venture will settle the high-interest payment-in-kind (PIK) loan next week.

 

Sky Sports News understands that the Glazers will use their own money, and not the club's, to settle the debt, which carries an annual interest rate of more than 16%.

 

Joel Glazer, the co-chairman of Red Football, has signed the document which has been sent to the holders of the loan, who are mainly hedge funds.

 

The document says Red Football will "pre-pay 100% of the outstanding loan on November 22".

 

United's debt is estimated at more than £700m so this repayment would mean the debt is solely the bond agreed earlier this year worth more than £500m.

 

A spokesman for the Glazers has declined to comment.

 

Comfortable

 

The move may help to reassure United fans who have been concerned about the debt burden on the club after chief executive David Gill last month insisted supporters should not be unduly worried by the figures.

 

Gill said: "I can't speak for any other club, but the United fans should not be concerned.

 

"We have a long-term financing structure in place, excellent revenues that are growing, we are controlling our costs - total wages are 46% of turnover - and we can afford the interest on our long-term finance.

 

"In our opinion if something changed in the ownership this club will survive and continue - it is covering the financing cost more than adequately.

 

"We still have cash to invest in players and to give good contracts to players and we are comfortable with the business model."

 

 

It was suggested on Irish Radio this morning that the money is to come from the club rather than from the Glazers themselves. Should be interesting to see how this one develops.

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RobbieOR Grand Master

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A bit of pressure on them nonetheless. Would like to see these cunts fucked off also. Just one more tiny step to one day, maybe a long time away, but just maybe one day football been back to what it was 20 years ago.

 

Yep. It aint nice. I hope they fuck off. but, I dont fell sorry for some of their fans who were wishing us to go bust, Karma will be a bitch.

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Jack the Sipper Mentor

Jack the Sipper

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I'm no expert on Man U's finances, but as I understand it, the debt in question (the £220m PIK's debt) is the Glazer's own debt anyway - not Man U's. There's also speculation that they're paying off this debt (their own debt) by loaning against the club - which would then put £220m on to Man U's books. If so, their debt's just increased by nearly a third overnight.

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Xherdan Veteran

Xherdan

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They're meant to have 150 million in cash reserves, they'll be fine the mancs they always are. Spawny cunts. Saying that though i'd Love it if they went bust and disappeared.

 

 

 

Id much prefer to pull away from them in league titles and add a few more CL than see them go out of business. Much more satisfying that way.

 

IMO this removal of the loans from MUFC balance sheet will be a change in name only. The club will still have to service the debt. The structure is similar to the loans which created the loss for Gillet & Hicks.

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Guest TesticleOReilly

Guest TesticleOReilly

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They aren't paying it themselves. Out of around 50/60 malls they own in Florida they've defaulted on over 40 of them this past 2 years, any repayments are coming from elsewhere.

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TommyW Rising Star

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the PIKs were never on the clubs books but the fear from the United fans perspective was that the club was paying the interest on them

 

I cant see anything changing other than the fact they will probably have a new loan to replace this one at cheaper rates which the United fans will still fear will be paid by the club

 

some of the less clued up United fans will see this as the Yanks reducing the debt on the club and it being a good thing however

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Xherdan Veteran

Xherdan

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They aren't paying it themselves. Out of around 50/60 malls they own in Florida they've defaulted on over 40 of them this past 2 years, any repayments are coming from elsewhere.

 

 

 

To take the money off the balance sheet they would have to borrow personally unless they had the cash to inject. The money is then introduced as new share capital and is used to pay off the loans. The repayment of these personal loans could take any other form thereafter reducing the perceived interest charge on total loans on the balance sheet. In other words, they will still have to be repaid, just not in the same guise.

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Barrington Womble Grand Master

Barrington Womble

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They're meant to have 150 million in cash reserves, they'll be fine the mancs they always are. Spawny cunts. Saying that though i'd Love it if they went bust and disappeared.

 

i was reading something a little while back that says that isn't true (re the 150m). They deliberately do their accounts at a period where loads of money has come in - much of what is paid comes in large lumps (large parts PL/Sky money, ST money, CL money etc) and much of that hits at one time, then needs to be used through the season. In effect, when they publish their accounts, it's at a period when everybody has paid them, but they have a season to run. In real terms, they didn't have reserves at all.

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Xherdan Veteran

Xherdan

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i was reading something a little while back that says that isn't true (re the 150m). They deliberately do their accounts at a period where loads of money has come in - much of what is paid comes in large lumps (large parts PL/Sky money, ST money, CL money etc) and much of that hits at one time, then needs to be used through the season. In effect, when they publish their accounts, it's at a period when everybody has paid them, but they have a season to run. In real terms, they didn't have reserves at all.

 

 

 

Hmm, thats interesting. is the PL money paid in one or two large installments?

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Reacher Experienced

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The Glazers are up to something. In recent conference calls to their bond holders, this wasn't mentioned. Which is very strange. They're also not giving much away with regards to where the money is coming from.

 

Is exactly what i am thinking, how have they just found 200mil plus when they're struggling to pay the interest?

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