United bond raises £504m

MANCHESTER UNITED have successfully raised £504 million (€574 million) through a bond issue but the move will have both positive and negative effects for the club, according to one football finance expert.

The bond issue, which has caused huge controversy and opposition from some fans, has been over-subscribed and should allow the club’s owners more flexibility in running United. It will enable them to pay off most of the club’s outstanding £509m debt to the banks and possibly help the Glazer family tackle the £202m payment in kind (PIK) loans which continue to grow.

However, the interest payments on the bonds will be £45m compared to the current £41m on the bank loans – and they have only delayed a decision on the whole debt until 2017.