Glazers hit back over debt claims

The Glazer family have strongly denied that Manchester United’s debts are spiralling out of control.

The Glazer family have strongly denied that Manchester United’s debts are spiralling out of control.

A report from the Manchester United Supporters Trust, due to be released tomorrow, claims that the club’s interest payments have increased by £28m this year.

It also claims that increased TV revenue and money from a new shirt sponsorship deal with AIG is being used to service debts.

But a Glazer family spokesman this morning dismissed the report telling PA Sport: “The story is inaccurate. Nothing has changed.

“The debts continue to be comfortably serviced by the business, which is performing better than ever.

“As always there have been substantial funds for the manager to purchase players over the summer.”

United have spent heavily since the end of last season, recruiting Owen Hargreaves, Carlos Tevez, Nani and Anderson, and Sir Alex Ferguson has not been restricted in the transfer market since the Glazers completed their £790m takeover in 2005.

United fans have been hit with a 14% rise in ticket prices this season but the club has to fund rising player salary demands and keep stars like Ronaldo, Wayne Rooney and Rio Ferdinand at Old Trafford.

The Trust report claims that the Glazer family “continue to face an extraordinary and growing debt problem”.

The report states that since last year’s refinancing, United and the Glazers have been faced with “a series of interest rate rises which have increased the annual debt service bill from £62m a year on the total debt of £660m.

“The interest bill is currently an annualised £100m-plus, of which £73m is payable this year and the other £27m in the future – a ticking debt time-bomb.”

Reports have emerged over recent weeks of potential buyers for United based in China and Dubai but the Glazers have stressed that they have no interest in selling and are completely committed to the club.

More in this section

IE_180_logo
Price info

Subscribe to unlock unlimited digital access.
Cancel anytime.

Terms and conditions apply

Sport
Newsletter

Latest news from the world of sport, along with the best in opinion from our outstanding team of sports writers

Sign up
IE_logo_newsletters

Select your favourite newsletters and get the best of Irish Examiner delivered to your inbox