Old Trafford owners try reduce their debts.
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Manchester United’s American owners plan to reduce the financial pressure on the club by paying off high-interest loans, estimated to be worth £220m.
The loans were taken out with three US hedge funds to help finance the Glazer family’s £790m takeover in 2005.
The BBC understands that Joel Glazer, the club’s joint chairman, has written to the lenders to inform them the loans will be paid in full on 22 November.
The football club’s total debts are estimated at more than £720m.
It is not yet clear how the Glazer family were able to raise the money to pay off the PIK (payment in kind) loans but significantly it is not with funds from the club.
The Glazers are most likely to have borrowed money from other financial institutions at more affordable rates to refinance the PIKs.
A spokesman for the Glazer family declined to comment. (BBC Sport)
Does this move mean that Manchester United are out of the woods financially speaking? Clearly this is a good move but perhaps it is not as promising as it at first looks. In many ways it looks as though the Glazers are simply attempting to make the debt a tad more manageable rather than any real sense that the club is on more sound footing.
Do Man United fans feel that the club is still shackled by debts and that they are being held back due to the immense burden the Glazers have placed on the club? Are Sir Alex Ferguson’s transfer policies being affected by this?