Leaders
Dallmeier

Business Directory

Browse the Directory

Sign Up to the Directory

FC Business Twitter
FC business Linked in
FC Business facebook
FC Business Youtube

Glazers to pay off PIK loans

Tue 16th Nov 2010 | Money & Finance

Manchester United’s under fire owners have revealed they intend to pay off their controversial £220million payment-in-kind (PIK) notes without using money drawn from the club.

Co-chairman Joel Glazer has issued a 'voluntary free-payment notice' to the lending houses that stumped up the loan confirming it will be paid off in full.

Under the terms of the £500million bond which is United's responsibility, the Glazers could take £70million out of club funds to pay part of the PIK debt, which is lodged against the family.

However, it does not appear this is the case, even if there has been no comment from United about how the money to pay off the PIKs has been raised.

More may become apparent later today when United are due to publish their results for the last quarter to bond holders.

They are likely to be asked to address the issue in a conference call with investors.

Many supporters will remain sceptical about the news, which in theory confirms Sir Alex Ferguson's previous claims that he has a large transfer kitty at his disposal.

Supporters opposed to the Glazers have always claimed that such talk was false, with the money being earmarked for the PIK loans, which are now attracting interest at an eye-bulging 16.25%

 

 

 

 

If you have any football business related news stories you’d like to share then please contact us – agourley@fcbusiness.co.uk or ryan@fcbusiness.co.uk

 

Add to: Google Google | Yahoo Yahoo | Live Live | del.icio.us del.icio | Digg Digg |

Related Articles

West Ham Champions Of Season Ticket Affordability

Wed 19th Jul 2017 | Money & Finance

With the new Premier League season approaching it promises to be another exhilarating season, full of twists as well as surprises for fans. Chelsea convincingly captured their fifth Premier League...

Everton Sign Landmark Stadium Financing Partnership

Thu 6th Jul 2017 | Money & Finance

Everton Football Club has signed an agreement with ICBC (London) plc and Industrial and Commercial Bank of China Limited, which will provide the Premier League club with a £60m 3-year credit...

How Football Clubs Source Their Revenue

Thu 22nd Jun 2017 | Money & Finance

It will come as a surprise to no one that football is big business these days. Although players’ wages – especially at the top teams – have increased remarkably, the clubs can pay...

“Why Does Your Club Offer Discounts?” 5 Responses

Tue 6th Jun 2017 | Money & Finance

Following my article last week on the 3 observations about discounts offered on football clubs’ merchandise stores ; I wanted to share some more insight in to the merchandise space. I’ve...