Join Now | 
HomeAboutContact UsPrivacy & SecurityAdvertise
Soccer America DailySpecial EditionAround The NetSoccer Business InsiderCollege Soccer ReporterYouth Soccer ReporterSoccer on TVSoccer America Classifieds
Paul Gardner: SoccerTalkSoccer America ConfidentialYouth Soccer InsiderWorld Cup Watch
RSS FeedsArchivesManage SubscriptionsSubscribe
Order Current IssueSubscribeManage My SubscriptionRenew My SubscriptionGift Subscription
My AccountJoin Now
Tournament CalendarCamps & AcademiesSoccer GlossaryClassifieds
Man U's Financing Under the Microscope
The Daily Telegraph, July 19th, 2006 5:01PM

MOST READ


Manchester United's massive debt refinancing program does not in fact mean more money for extra players, according to the UK's Daily Telegraph. The £660 million package increases the amount of money borrowed against the club's assets, but it cuts back on interest payments owed by more than 30 percent. All this does is further secure the Glazer family's hold on the club, a spokesman tells the Telegraph. The impact on Sir Alex Ferguson's transfer budget is actually "neutral." Fourteen months ago, the Glazers completed a hostile £790 million takeover of Old Trafford, forcing the family to borrow heavily to complete the deal. The renegotiated financing represents "good housekeeping" with investors, the club said. Under the new deal, arranged by American bank JP Morgan Chase, the underwriters have agreed to take on a greater degree of risk, giving the club slightly more room to breathe in paying back debt. Had the Glazers failed to pay back money owed in the first year, the hedge funds could have demanded seats on the United board and a portion of the Glazer's share in the club. Interest in the first year alone amounted to £63 million. The road back to financial parity will be paid for by a combination of greater seating capacity at Old Trafford, now 76,000, a raise in ticket prices, a new £56.5 million, four-year shirt sponsorship deal with insurance company American International Group, and a renegotiated TV deal with Sky and Setanta Sports with the top English clubs estimated to be worth £1.7 billion. Overseas TV rights have yet to be determined, but are expected to rise from £23 million last year to more than £30 million. Read the original story...


No comments yet.

Sign in to leave a comment. Don't have an account? Join Now




AUTHORS

ARCHIVES
FOLLOW SOCCERAMERICA

Recent Section 2 Around the Net
Chandler Could Return to Training Next Week     
U.S. international Timothy Chandler is set to return to Nurnberg team training in 10 days, ESPN ...
Garcia: Roma's Scudetto Dream Not Over    
AS Roma coach Rudi Garcia says that he has not given up hope on the Scudetto ...
Giroud Honors Hillsborough Victims     
Arsenal striker Olivier Giroud paid tribute to the victims of the 1989 Hillsborough disaster after scoring ...
PSG President: Blanc Has My Full Support    
Paris Saint-Germain President Nasser Al-Khelaifi claims that coach Laurent Blanc has his "full support" amid recent ...
Donovan Opens Up About Aging    
Speaking at a promotional event for Samsung, U.S. men's national team midfielder Landon Donovan opened up ...
Dortmund Blanks Wolfsburg German Cup Semi    
Borussia Dortmund on Tuesday reached its sixth German Cup final, beating Wolfsburg 2-0 thanks to goals ...
Candidate: FIFA Must Close Inequality Gap    
FIFA presidential candidate Jerome Champagne believes soccer's world governing body should do more to tackle inequality ...
Report: Man City the World's Best Paid Team    
Manchester City's first team is apparently the best-paid in world sports, according to a new report ...
Vice President Biden to Attend World Cup    
The World Cup trophy made its first stop in the United States on Monday as part ...
Beckham's Stadium Plan Runs into Opposition    
David Beckham's plan to build a waterfront stadium to house his new MLS franchise in PortMiami ...
>> Section 2 Around the Net Archives