Banks ‘sharpening knives’ for United

FINANCIAL expert Keith Harris last night warned the banks which funded the Glazer family’s Old Trafford takeover will be “sharpening their knives” following Manchester United’s shock Champions League exit.

Harris, the former Football League chairman who advised Chelsea during the Roman Abramovich takeover, claims United’s European failure will make it difficult for the Glazers to repay their huge loans.

He believes it justified the lenders’ 18% interest rates and brought the prospect of banks owning a part of the club closer.

“Most football clubs budget conservatively so their budgets will assume they get knocked out of every cup at the first stage,” Harris, executive chairman of investment bank Seymour Pierce, explained.

“But that’s different from a business plan that has to support the level of borrowing the Glazers took on to buy Manchester United. In order for them to meet their obligations it’s essential they get much further in Europe.

“Three of the organisations who lent Glazer money - they are all based in New York and heaven knows what interest they have in football - will be able to justify lending money at an interest rate of 18% because the loans are risky.

“Eighteen percent is four or five times the level of interest rates in the UK but these guys are mortgage lenders and understand risks. They have put an appropriate rate on United’s borrowing.

“They’ll be thinking how is Glazer going to repay the interest, let alone start digging into the principle? They’ll be sharpening their knives. They have the right to possess a certain percentage of the club if repayments are met. We could have anonymous bankers running the club alongside the Glazers.”

Meanwhile Ferguson has urged his players not to feel sorry for themselves in the wake of Wednesday’s Champions League exit.

“Yes we are all hurting, players, fans and manager, but we have to grit our teeth and get on with it,” he said.

“Our reaction must be to pick ourselves up and try even harder to reach our goals. Whilst we bitterly regret our defeat in Lisbon, there is no time for recrimination. We must be determined to respond the right way and I know the players will because they are loyal, honest and committed.”

Yet, despite being the target of intense media attention over the last 72 hours, Ferguson gave no indication he is going anywhere.

“People talk about the club coming under pressure and inevitably some people try to make it personal. But that is not a problem for me. It was ever thus because there is always great demand and expectation at this club. That is the job and I would not have it any other way. Facing disappointments and setbacks is part and parcel of being a manager at Old Trafford.”