Old Trafford set for new owners?
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Financial analysts believe the Glazer family could be gearing up to sell Manchester United, after it emerged that the American owners intend to pay off £220 million in high-interest loans secured on their shareholding.
The motives behind the Glazers’ decision to pay off their controversial payment in kind (PIK) loans are unclear, as are the source of the funds.
But speculation is growing in the City that it could be the first step as part of a long-term strategy to sell the club the Americans bought in a debt-laden takeover in 2005.
If the interest on the loans, accruing interest at an astronomical 16.25 per cent, had been allowed to continue to ‘roll over’ until they matured in 2017, the total debt would have stood at more than £600m, on top of the £526m bond secured on the club itself.
“It could be seen as the housekeeping you do before you sell,” investment analyst and blogger Andy Green, who provided much of the material for the Panorama investigation into United’s finances last summer, told Goal.com UK. (Goal.com)
So if this source is correct then happy days could be just around the corner for the Old Trafford club, but that is a big IF. The paying of high interest loans with money accrued from lower interest loans is standard practice and wouldn’t necessarily mean the Glazers are planning an exit strategy.
Clearly the club has a great deal of debt to deal with and any prospective buyer would have to have very deep pockets to take control of Manchester United. Do fans of the club believe that a deal may be in the offing?
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