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United’s debt rises to £716.5m

20th January 2010

• Glazers’ company Red Football Joint Venture Ltd files accounts
• Company paid £68.5m in interest payments on debts in 2009

Manchester United’s parent company’s overall debt has swelled to £716.5million, their latest accounts reveal.

The company, Red Football Joint Venture Ltd, which is owned by the Glazer family, filed accounts today for the year ending 30 June 2009, showing their overall debt has gone past £700million for the first time, increasing by £17million from £699million.

The biggest rise has come in the payment in kind (PIK) loans, which typically have a higher interest rate, which show a £27million increase to £202million. Bank loans, meanwhile, have dropped by £9million to £509million.

The overall debt figure, not contained in the prospectus for a £500million bond issue released last week, illustrates why the Glazers are so keen to raise cash through bonds to reduce the interest on the debt.

Red Football Joint Venture paid £68.5million in interest on their debts in 2009, but unlike the previous year, returned an overall profit of £6.4milllion in 2009. In 2008, they returned a £47million loss.

The profit can almost entirely be explained by the sale of Cristiano Ronaldo to Real Madrid in the summer for £80million. Red Football Joint Venture’s accounts record an £80.7million profit on “disposal of players” compared to a £21million profit in 2008.

A spokesman for the Glazer family insisted that the debt did not have a bearing on the operation of the club.

He said: “The club has a £50million surplus to work with once the interest payments have been made.”

Manchester United’s accounts also show their chief executive David Gill was paid £1.8million last year.


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Comments & Opinions (2)

Shaun

20 Jan 2010, 9:40pm

Hope they go bankrupt!!!!

Liam Crean

5 Jul 2011, 3:51pm

I do.

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