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Mancs in financial meltdown

Guest Toxteth O'Grady

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Guest Toxteth O'Grady

One rich list named them as the richest football club in the world today, but Manchester United may not be rolling in quite as much cash as they seem to be.


The holding company established by the US sports millionaires the Glazer brothers to buy the club, has filed its latest accounts today, and they make grim reading for the club's fans.


The Glazers borrowed more than half a billion pounds to buy the club, and the cost of servicing that debt is taking its toll on the club's profits.


The accounts show that the holding company - Red Football Shareholder - made a loss of £62.6m for the financial year which ended in June 2007, on a turnover of £212m.


The loss may have fallen from the previous year's figure of £138m, but the company's borrowings soared - from £641m to £765m.


The borrowings include £152m of 'payment in kind' loans - an ultra-high interest form of borrowing which attracts 14.25 per cent interest per annum.


And £425m of the loans are secured against the assets of Manchester United football club itself.


So if the Glazers walked away from Manchester United, the creditors could still call pursue the club for the majority of Red Football's debts.



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Guest Scot

Yes what a disaster the Glazers have been over there...a nightmare.


The bar-room corp financiers had that one spot on...

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Guest Toxteth O'Grady

If not for Fergie it could well have been a disaster.


Anyway, next time I'll just post how wonderful they are.

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