NFL concerned over United's casino plans

The National Football League have admitted Manchester United’s plans to build a casino next to Old Trafford is a “potential issue” for new owner Malcolm Glazer.

As owner of the Tampa Bay Buccaneers, Glazer is subject to NFL rules which prohibit an ownership interest in a casino and bars all teams and league personnel from having any promotional arrangements with gambling establishments.

Although American football’s governing body is confident the purchase of United itself does not break their regulations on cross-ownership, Old Trafford’s joint interest with Las Vegas Sands Corp in building a luxury hotel and casino development could be a problem.

NFL spokesman Greg Aiello, speaking at the league’s spring meeting in Washington, said: “The only potential issue concerns that reported Man U venture with the Las Vegas casino, what that means, and does it have any implications regarding our policies.”

The plans for the Trafford Park side of the stadium have been raised with NFL commissioner Paul Tagliabue by Shareholders United, a supporter-investor group opposed to Glazer’s takeover which has delivered 76% of the club’s shares to the American.

In a statement to Tagliabue, SU’s American representative JD Deitch stated: “Manchester United has more than just a passive relationship with gambling and gaming.

“It is and has been very active in this regard and has plans to become much more active in the future.

“As such, it is our view that these arrangements clearly conflict with Mr Glazer’s position as an NFL franchise owner.”

Meanwhile, a leading analyst has tried to allay fears that United under Glazer are heading for financial meltdown similar to Leeds.

The Yorkshire club’s debts spiralled to £103m (€149m), leading to a fire sale of players and eventual relegation from the Premiership.

Glazer’s formal offer document displayed a succession of steepling interest charges, taking the approximate overall cost of a £265m (€385m) loan to a massive £570m (€828m).

On top of his loan he has to pay back a bridging loan of £18.9m (€27.4m) by March next year and another £90m (€130m) as a credit and capital expenditure facility.

There is also another £275m (€399m) in preferred securities – and fans are horrified at the scale of the debt and fear for the club’s future.

However, Hilary Cook, investment analyst at Barclays Stockbrokers, said: “What you have to make sure is you have a cushion between your trading profits and the costs that go with servicing your debt.

“The problem with Leeds was their costs of borrowing were greater than their profits.

“It is not in Glazer’s interests to put so much expensive debt in that they cannot afford to trade any more.”