GLAZERS FACING MELTDOWN
Old Trafford owners must re-finance to meet massive demands
MANCHESTER UNITED have to pay back a staggering £1.1BILLION of debt in the next nine years.
And unless Malcolm Glazer and his family can refinance their borrowing or take drastic action, financial experts believe they are facing meltdown.
The controversial Americans could be forced to off-load top players, starting with Cristiano Ronaldo to Real Madrid.
Or they might have to sell the club to one of a number of potential new owners waiting in the wings. A Chinese consortium that was willing to pay £1billion for United two years ago is still interested while another group from Qatar is also watching developments at Old Trafford.
City analysts with connections to United fans' pressure groups have uncovered startling detail in accounts published this week by the club and its holding companies.
The Glazers will have to repay £75m in 2013, £150m in 2014, £150m in 2015, £150m in 2016 and a final payment of £600m in 2017.
The financial analyst told Sport of the World: "For the first time the accounts show the debt repayments that are due over the next nine years.
"The Glazers will obviously try to re- finance but that is not going to prove easy in the current global financial crisis.
"That could mean having to raise funds and could see the sale of players like Ronaldo against the wishes of the manager. Or they could sell the club for in excess of £1billion which would still give them a healthy profit."
United's finances are being monitored by supporters' action groups who have campaigned constantly since the Glazers paid over £800million for the club in 2005.
The takeover was financed with loans and the current debt stands at £699m - £518m of it secured against the club and its assets.
The bleak financial forecast contrasts sharply with United's trading figures. For 2007-08, the club's turnover increased to a record £256m to generate club profits of £66m - but these were wiped out by interest repayments on debts of £68.8m.
A spokesman for the Glazers declined to comment.
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This article has 55 comments
It is the beginning of the end. The future is bright. The future is blue.
By Pam.. Posted May 15 2009 at 9:04 PM.
would like nothing better after 50 years of the arrogant Manure team to watch them play Burton in the conference leage and lose
By graham.. Posted April 18 2009 at 10:09 AM.
even so the manu fans allover the world who are about 300 millions will buy stocks to own the club
By ahmed atta.. Posted April 15 2009 at 5:41 PM.
The fans of Manchester United, like those of Liverpool, seem not to care that their clubs are in so much debt, since they believe that there will always be a mega rich Tycoon or a wealthy consortium waiting in the wings. Even if Man Utd were to be bought by a chinese consortium, the fans would find that, like the Kuwaitis sniffing around Liverpool, they are businessmen first and foremost, and will want value for money. They will want to squeeze as much profit from the club as possible. Roman Abramovich may turn out to be one of a kind.
By Mike.. Posted April 13 2009 at 10:38 PM.
Whilst i admire Man U the way they play football they are successful because they spent stupid money! I support Arsenal and i am greatful to our owners and to Mr Wenger who actually care about the future of our club! I really cannot understand fergie and the glaziers spending money irresponsibly and putting your great club at such a risk!
By Peter.. Posted April 13 2009 at 6:21 PM.
I wonder if the Manchester United manager will stay around when money gets tight.
Arsene Wenger did not runaway anywhere in the past 5 years.
By Arsenal Fan.. Posted April 13 2009 at 3:00 PM.
Liyetu boy
By Manchester Dis-United, with all the trophies the world can offer in ur cabinet, still ur debt is rising.Look at the GUNNERS for 5yrs yet to win even a TEA CUP,with the completion of a stadium worth around £360m. in 2006 now they are owing about £260m. Paid off about £100m already still no trophy won. With profit from the HIGHBURY PROPERTY PROJECT they will be debt free.Even without winning trophies. This show great brains at work in the EMIRATE COMPLEX. Its a sorry case for Manchester Disunited... Posted April 13 2009 at 7:03 AM.
WHO ARE THE QATAR CONSORTIUM - ANYONE KNOW???????
By marhaba.. Posted April 13 2009 at 5:29 AM.
Since the owner of the club is in debilitating debt, i think the Glazer family should consider selling the club to new owner who can run the club without any debt! But there are some unworthy spending on players like "Barbatov", Anderson, and that useless Nani they never worth those amount spent on them... Arsene Wenger can never spend such a money on this kind of players who after a season does not deliver anymore... Ferguson should have a rethink and spend wisely not just anyhow he feels...
By Onabanjo.. Posted April 13 2009 at 4:59 AM.
This is all about the wierd accounting and financial practices brought about by greedy accountants and bankers. How is it logical that a person buys an entity on borrowed money, then puts the burden of debt on the bought entity? Can you go to a shop, take a candy bar then tell the cashier the candy bar will pay for itself and just walk out? If you want to buy something, you put up the cash for it, simple as that!!!
It's all about greed and twisting processes around so that the rich get richer while they squeeze the poor.
By ericz.. Posted April 13 2009 at 3:35 AM.
Haters & critics. You WILL be silenced when the trophies are in our hands! Debt or no debt, we'll never die!!!
By Devilworshipper.. Posted April 13 2009 at 1:00 AM.
sell the club and keep the squad, man u play attractive football and thats what fans want to see
By marlon.. Posted April 12 2009 at 11:09 PM.
so this is how you win the lot, debt your self upto the eye balls to buy the best players in the world.
LFC for the title!
By SpiceBoiii.. Posted April 12 2009 at 9:40 PM.
heh hilarious - all them ManYoo fans who reckoned Roman would lose interest and walk away form Chelsea - AND - felt that the Glaziers were true loyal dedicated fans due to their incredible investment.. this made me LOFL.. at this rate there is no way they can repay the investment banks and hedge funds esp when you consider the accrued interest and at a time when liquidity is poor in the markets - sorry, no chance at all. with all of this happening, why are they increasing player's wages? unbelievable. this is potentially worst than the LUFC situation, but still excellent entertainment value seeing them go bust.. heheh. Rio Ferdinand @ 300K week anyone?
By mick.. Posted April 12 2009 at 9:33 PM.
whooooo no more united! now WE can b the best united! yayayayayay
By leedzfan!.. Posted April 12 2009 at 7:07 PM.
Plastic club, no local fanbase.
If I was a Manc I would support Liverpool FC.
Ferguson like the ex chelsea big head are unable to develop players, chequebook managers.
Economic bubble has burst, soon be at the level of another small club called Everton.
Looks like Liverpool are set to dominate again.
Big club with a loyal fan base
By kopite.. Posted April 12 2009 at 7:06 PM.
What goes around comes around!
By Rita Cocking.. Posted April 12 2009 at 5:49 PM.
Manyoo go bust, oh dear! Finally they will not abuse the name Manchester anymore, as they are way beyond in a different place called Salford.
The plastic fans just go to other teams, no problem, they know it is just changing jersey's and like a leaf on a tree they turn their back to manyoo and are suddenly 'Madrid' supporters.
Also, manyoo 'fans' are no football fans. They are fortune seekers! Its only about being seen with a manyoo shirt (YUK, the nosia)
By Michael.. Posted April 12 2009 at 4:43 PM.
haha the debt of manure finally stinks, maybe you can get some loans or something for the quintiple you guys still think you can pull off somehow and if you dont win.....
By lfcyank.. Posted April 12 2009 at 4:39 PM.
Manyoo go bust, oh dear! Finally they will not abuse the name Manchester anymore, as they are way beyong in a different place called Salford.
The plastic fans just go to other teams, no problem, they know it is just changing jersey's and like a leave on a tree they turn their back to manyoo and are suddenly 'Madrid' supporters.
Also, manyoo 'fans' are no football fans. They are fortune seekers! Its only about being seen with a manyoo shirt (YUK, the nosia)
By Michael.. Posted April 12 2009 at 4:17 PM.
Just sell the god damn club to the asian people wants to buy since the glazer family cant affort it no more..tat's much more easier then selling the players..so there's good english soccer to watch..stupid glazer family..sigh..
By SS.. Posted April 12 2009 at 3:40 PM.
For years Man U have bought their success. Now they will pay the price. With all their millionaire talent they all but lost to cinderella Sunderland yesterday. Pardon me while I laugh.
By Indyfan.. Posted April 12 2009 at 3:23 PM.
I hope they have to sell off everyone and they go bankrupt and are relegated to the championship.
By Paddy.. Posted April 12 2009 at 2:55 PM.
LEEDS4LIFE WE WONT DO WHAT YOU WENT THROUGH YOU GOOD AS ITS QUOTED A CHINESE BUSINESS GROUP AND A QUATAR CONSORTIUM ARE BOTH INTESRESTED IN BUYING THE WORLDSBIGGEST CLUB,DO YOU THINK FOR 1 MOMENT THE FA WOULD LET THE WORLDS BIGGEST CLUB JUST MELT I DONT THINK SO,LEEDS ARE A EFFING JOKE..........
By MARK.. Posted April 12 2009 at 2:43 PM.
They are just like the Madoff's off this world. Money ,money is their life blood .The Vatican made a mistake many centuries ago,making their desendants Bankers....
By Jack Bush.. Posted April 12 2009 at 2:31 PM.
paul mufc when as man utd beat liverpool certainly not this season
By scally the kopites.. Posted April 12 2009 at 1:55 PM.
look at the little leeds fans suddenly dusting off there shirts and opening his mouth. i had forgot you even existed since you had all been so quiet for so long. when we buy the only good player in your squad, fabien delph for 2 mill and don't play him because he is rubbish we will see how funny you are then.
By leeds 4 the conference.. Posted April 12 2009 at 2:01 PM.
May be the city owners could buy us out and use city as our feeder club that would make sence as united are worlds most famous club and city, nobody knows your name
By Paul mufc.. Posted April 12 2009 at 1:24 PM.
i am utds number 1 fan and ronaldo is my favourite player fergie if u think if liverpool can beat madrid and if utd can beat liverpool why dont u sell carrick and tevez NOT RONALDO because he is the best player in the world so u should be happy that u have the portugues left winger
By conor rowson.. Posted April 12 2009 at 1:23 PM.
Oh God, I knew this happen. I've been sporting ManU all life and now I have to sport some other club cos ManU not last more years. Debt too big, we get relgated then all our fans go sport other club. They shuld let us of debt cos were Manu and we rool/
By bob.. Posted April 12 2009 at 12:31 PM.
hello manchester fans i had a dear friend who lived in tampa bay and he said when the glaziers took over at your club you would be on the road to ruin they did the same at tampa bay sold everything to the bare bones to repay huge bebts and hello there going to have to do it again richest club in the world you were your a billion in the red get a truck and drive them out of town
By dave.. Posted April 12 2009 at 12:11 PM.
LMAO! all you scum trying to reasure yourselves is priceless lol. lets face it, it was gonna happen someday. soon you'l be where we are now. and dont say it wont happen because of your "global fanbase" we've still got a bigger fanbase than more than half of the prem and we've still strugled. at the end of the day, manu is an overated false club with plastic support. its just a billboard for the FA and the sooner glazer takes the chip off your deluded shoulders, the better.
By leeds4life.. Posted April 12 2009 at 12:09 PM.
Man U have the business Model as New Labour, Spend Spend Spend. Then find out your skint. Brace yourself for tough seasons ahead.
By Gooner.. Posted April 12 2009 at 11:49 AM.
There must be something done about people, foreign or British, buying clubs using money they don't have. Either pay whatever the price is, in actual funds and not borrowings, or leave the sport alone. To think that the 2 biggest clubs in England are both being run by people who are just using them as permanent loan machines is a disgrace.
By DKH.. Posted April 12 2009 at 11:20 AM.
MU will survive, cause they're traditional champions...their millions of fans all over the world will see to that too.
Champions always do....so city fans....just chill, your team might win something someday....who knows....
By steel.. Posted April 12 2009 at 11:19 AM.
Easy guys, easy ... I reckon that none of you have ever been involved in any business transaction involving amounts like these? And business that's what football is all about these days. So leave it to the big guys - and enjoy the play!
By Per Gronning.. Posted April 12 2009 at 11:00 AM.
What is wrong with you lot of sad people who HOPE United go bankrupt. I am an Everton supporter and admire United for the way they play the game. If all the teams played like they do, the Premiership would be even better.
By Ray Morgan.. Posted April 12 2009 at 10:57 AM.
HAHAHAHA......united going bust with a biilion in debt....a billion in debt....a billion in debt.....
By Dave Stubbs.. Posted April 12 2009 at 10:18 AM.
If Manure can't even service the interest on their debts after the success they have had over the last 12 months then what hope do they have for the future?
They could win 5 trophies every season for the next 8 years and still not pay off their debts.
United may have been worth £1billion 2 years ago but the world has changed since then. They would be lucky to get half of that now.
By camp bleu.. Posted April 12 2009 at 10:22 AM.
I find it hard to believe the amount of people on here that have left comments appear to be illiterate. In this day and age there is no need for it. Get a grip!
By Sue.. Posted April 12 2009 at 9:40 AM.
ha ha maybe if you ask nicely we'll lend you a few bob
By blue moon boy.. Posted April 12 2009 at 9:34 AM.
The Glazers are in business to make money. They will be listening to ideas on how to get the right formula to do it. If selling Ronaldo is the answer, if the price is right, it's ok for them. Otherwise, they will go for Berbatov and Tevez. Good luck.
By Ze Aanaconda.. Posted April 12 2009 at 8:58 AM.
Paul at the top, your a bit green i'm afraid! Debt has to be paid off eventually. The clubs interest is compounding year on, year. Your club has to win the premier league and champions league every year to fall another 5 million in debt! (That's a smart business model if i could ever say!!! Ok if they sell for a billion the new owner has a debt probably of 3/4 of that to start paying off as well. Road to ruins mate! im afraid eventually.
By Brooksie.. Posted April 12 2009 at 8:35 AM.
If the Glazers were in that much trouble they would sell the club, still netting a healthy profit. Man utd have always been fine and always will be. Selling players doesnt make sense, for the Glazers to make money the club need to be successful. from were im standing we are. Champions of England, Champions of Europe, World Champions. In every comp this season, top of the league. Need i say more. Come on you reds. Glory glory Man utd.
By paul.. Posted April 12 2009 at 7:44 AM.
All your comments are sucks....they only want to try an make a profit outta united,,,,theyl run when its time dont you worry....then wel have our own Abramovich !!
By martin spicer.. Posted April 12 2009 at 7:12 AM.
never mind united you could always ask man city for a loan blue moon forever x
By city till i die.. Posted April 12 2009 at 6:27 AM.
Have no fear Man U fans, sell Ronaldo, Rooney, Teves & all your star players to finance the Glazer's family debt because u guys have Macheda. He'll rescue u guys like he did in your last 2 games, then we'll soon see where u end up....bottom of the heap. hahahaha!!!!
Music to my ears.
By PhilC.. Posted April 12 2009 at 5:20 AM.
he he he .....loving it.....ps he he he.... in ur faces united fans
By wph.. Posted April 12 2009 at 3:04 AM.
Never liked you people from the start when you took over our club and now you've messed it up. If you offload Ronaldo to repay your debts, I'll really dislike you even more.
By Penelope.. Posted April 12 2009 at 3:59 AM.
Oh dear what a mess!! United really are in the you know what. It's been coming for years because it was said years ago they would need to sell some players and didn't happen, doesn't mean that it won't ever happen. Those loans have to be paid some how and if they don't have it now then they will have to sell some players it's not rocket science.
By karen.. Posted April 12 2009 at 2:47 AM.
People have been saying for the last 4 years that United will be forced to sell players but it hasn't happened yet and it won't happen in the future.
By MUFC FAN. Posted April 12 2009 at 12:41 AM.
"I find it difficult to see where they will find this money"
The Glazers are worth about $2.5 Billion and United will soon be making annual profits of £75 Million+.
The Glazers will use a fraction of their vast fortune to pay off a debt repayment if things get a bit tight and the club itself is unable to pay it.
The last thing the Glazers want is for the banks to get a slice of the club,their plan has always been to eventually own 100% of a debt free club so they can sell a very attractive business for a lot more than they paid for it. Probably something around the £2 Billion mark. That seems an awful lot but people would be willing to pay that much if the "business" was debt free and making annual profits of £75 Million.
By Fergus Sira-Lexon.. Posted April 12 2009 at 1:38 AM.
get these horrible people out of our club, we all knew from the start they were nothing but bad news, no interest and no knowledge. out!
By mister.. Posted April 12 2009 at 1:35 AM.
they bought it on tick to make money and will sell it to make a profit to them its just business
By john.. Posted April 12 2009 at 12:57 AM.
I was never there biggest fan when there first took over...but they was given there chance. I find it difficult to see where they will find this money and in the intrest off the club they should sell up
By MUFC FAN.. Posted April 12 2009 at 12:41 AM.
.........many shareholders were shafted by their takeover of Man Utd, without any consideration, Seems a case of what goes round, comes round.
By Hb.. Posted April 11 2009 at 11:51 PM.