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Manchester United result

Manchester United FC financial results 2010 cartoon

Cristiano Ronaldo‘s last gift to his former club was to help keep the heavily indebted football club out of the very deepest red with his sale to Real Madrid. When the English football club was purchased by the Glazer family in 2005 the new owners borrowed very heavily against Man Utd’s future earnings. It is in this context The New York Times notes the second round of debt refinancing which the club’s owners are making since the purchase. This is Money explains how the debt financing operates. Despite Manchester United’s enormous annual turnover it owes something more than £60m in interest payments every year on the outstanding capital debt of something close to £700m. The renegotiation of debt deals suggests financial strain and if the Glazer’s couldn’t meet payments, or renegotiate them, the club would belong to a selection of US hedge funds.Wikipedia lists the creditors as CitadelOch-Ziff Capital Management Group and Perry Capital.

Clearly, Man Utd need to keep winning and stay popular.

Leave a Comment

  • Daniel Hoffmann-Gill

    As a United fan I must say, I’m worried.

  • manchester united shop

    No need to be worried. We’re a marketing mans dream and there’ll never be a lack of sponsors for us.

  • admin

    Thanks for the comments.
    I think the amount of money available from sponsorship deals, lucrative though they are do not really address the issue of the long term debts with which the current owners have loaded the club.
    Don’t you think the fact the Glazer’s are having to renegotiate financing again indicates distress in their financial accounting?

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