Between the Lines

"Of all unimportant subjects, football is the most important" – Pope John Paul II

Glazers prepare to take huge amounts of cash out of United

Posted by hakanrylander on January 19, 2010

It seems that the Glazers are preparing to take even more cash out of United than I anticipated. At least they’ve made sure that the small print in the recently published bond prospectus makes this possible.

The amounts mentioned are quite staggering. According to the terms of the bond issue the owners are allowed to take £70m of the club’s cash reserves, a £25m dividend, half of the club’s consolidated net income (£23m last year), £6m for “administration and management services” and £3m for services provided by holding companies. This adds up to £127m.

This is in addition to the payments of interest that will amount to £45m. Probably a bit more since the rate on the bond is likely to be somewhat higher than 9%.

This could bring the total taken out of United to service the Glazers’ borrowings to £172m next year alone!

Even Sir Alex Ferguson might then feel that our clout in the transfer market has been slightly reduced.

Find out more in this excellent article by David Conn and Owen Gibson in the Guardian.

3 Responses to “Glazers prepare to take huge amounts of cash out of United”

  1. Is this the beginning of the end of this brilliant period for United, or is tere a way this can be resolved?
    I presume Glazers won’t turn this around themselves so I guess the question must be if there are any buyers out there?

  2. hakanrylander said

    In my present state of mind I see this as the beginning of the end. In a few years United will still be a big club but not as dominant as we’ve been for almost a couple of decades now. I can think of no other solution than a new owner who doesn’t have the need to take huge amounts out of the club. Not too many of those around, I’m afraid.

  3. […] experts. This could be payed for by the club so that the family would not have to dig into the consultancy fees they are busy putting in their own pockets. The previous sentence  pretty much sums up the way in […]

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