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
The case for more female coaches in youth soccer    
Nicole Farley, who coaches at Southern California's Laguna United SC and Dana High School, says "I ...
Nasri to Miss a Month Following Surgery     
Manchester City midfielder Samir Nasri will miss a month after having groin surgery over the weekend. ...
Herrera Out as Man United Injury Crisis Worsens    
Manchester United midfielder Ander Herrera will be out for "weeks" with a fractured rib in yet ...
Giroud Signs Gunners Extension    
Goal.com reports that injured Arsenal striker Olivier Giroud has signed a two-year contract extension with the ...
Defender Helped Finance Barca Move    
Barcelona defender Jeremy Mathieu on Monday confirmed that he paid three million euros out of his ...
Man United Mulls Midweek Friendlies Abroad    
The BBC reports that Manchester United is thinking about playing potentially lucrative midweek friendlies abroad since ...
Cole 'Never Expected' to Play Against Lampard in UCL    
AS Roma defender Ashley Cole said he was surprised to come up against former Chelsea teammate ...
Luis Suarez Ban Upheld in FIFA 15     
Barcelona striker Luis Suarez is not currently playable in the "career mode" of FIFA 15, the ...
Simeone: Juve a 'Final'    
It may only be Matchday 2 of the UEFA Champions League, but Diego Simeone is already ...
Report: Pardew's Job Safe-for Now     
Newcastle United is currently 19th in the Premier League table and winless in six games so ...
>> Section 2 Around the Net Archives