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Man United sets debt payment

  • AP, Tuesday, November 16, 2010 12:52 AM

An announcement is expected Tuesday regarding a debt payment to be made by the Glazer family, which owns Manchester United, on the massive debt incurred in the purchase of the club in 2005. A payment of about $353 million is supposed to be confirmed when a holding company, Red Football Ltd., files its latest financial accounts.

The source of revenue to make the payment is unknown. The payment-in-kind loans carry an interest rate of 16.25 percent and represent a fraction of the club's debt load of approximately $1.2 billion.

The payment would still leave the club with debts of about 520 million pounds ($834 million). Loans used to purchase the club and fund its operations have been rolled into a seven-year bond issue. Last month the club released figures showing it lost $132 million in the fiscal year ending last June 30 despite record revenues of $455 million and an operating profit of $159 million.

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