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

MOST COMMENTED

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
Cavs weather storm to down VCU    
No. 5 Virginia won its fourth straight game against VCU, but thanks to Penn transfer Sam ...
Ferdinand: Moyes' Tactics 'Embarrassing'    
Former Manchester United defender Rio Ferdinand launched a scathing attack on former coach David Moyes in ...
Critic Apologizes to Saints Fans     
Southampton, many critics' pick to be relegated this season after selling so many players during the ...
Inter Crushes Sassuolo, 7-0, Again    
Inter Milan made up for its disappointing 0-0 draw away to Torino on the opening day ...
Simeone Hails Atleti 'Strength'    
Atletico Madrid coach Diego Simeone hailed his team's "strength" as the defending La Liga champ beat ...
Reports: Hamburg Coach Running Out of Time     
The German press claimed that Hamburg SV coach Mirko Slomka is running out of time, as ...
AC Milan Goes Top Following Nine-Goal Thriller     
AC Milan climbed to the top of the Serie A standings on Sunday following a thrilling ...
Wenger: Wilshere Back to His Best    
Arsenal coach Arsene Wenger said that Jack Wilshere is finally back to his best following the ...
Calderon: Ronaldo Could Seek Man United Return    
ESPN reports that former Real Madrid President Ramon Calderon believes Cristiano Ronaldo will return to Manchester ...
Freshmen show off talents in 'fantastic' Big Ten showdown    
No. 8 Wisconsin won a battle of unbeaten Big Ten teams when the Badgers defeated No. ...
>> Section 2 Around the Net Archives