Old Trafford

Next Game

Man Utd v A Villa

Saturday, 04 April 2015, 15:00

Barclays Prem

Anfield

Last Game

Liverpool 1 - 2 Man Utd

Sunday, 22 March 2015, 13:30

Barclays Prem

Man Utd reduce interest bill

Manchester United have slashed their interest payments with a new refinancing package boosting their finances.

Last Updated: 24/05/13 at 06:29 Post Comment

Manchester United: Future seems bright for Premier League champions

Manchester United: Future seems bright for Premier League champions

Dealing though Bank Of America, the Premier League champions have cut their interest bill by £10million a year having have refinanced £177.78m of outstanding sterling bonds, on which they are currently paying a rate of 8.75%.

In addition they have refinanced approximately £17m of dollar bonds on

which they are currently paying 8.375%.

United's present debt is £370million, the sum remaining from a highly leveraged takeover by the Glazer family in 2005.

The new loan from June 24 will have an estimated starting interest rate of around 2.78%. Interest payments should come down from around £31m to £21m per year United revealed in a statement.

Despite dire warnings of United's financial position since that time, the Old Trafford outfit have won five Premier League titles and played in three Champions League finals.

Majid Ishaq, managing director of financial advisory group Rothschild, said: "It shows that the infrastructure is in place and the decision they made on the managerial front is viewed as, not negative, but positive.

"They are in a position today where they have gone back to the market to refinance that particular part of the financing on very attractive terms because they have really delivered, and grown the underlying revenue and profitability."

United said earlier this month it is on course to generate more than £350m this season after earning a record £91.7m in the three months to March 31. Net profit more than trebled year-on-year to £3.6m in the third quarter.

"United is unique in that they have a great historic brand, and they have managed to derive value from that history and heritage in a very commercial way," said Ishaq, a football finance expert. "That's a big positive for investors."

With their commercial income rising rapidly, it seems United continue to remain one of the sport's heavyweights, shown last summer when they splashed out £24m on striker Robin van Persie.

It is believed new manager David Moyes will not be short of funds to spend should he wish ahead of the new season.

Related News

Most Commented

Readers' Comments

S

hould have stayed because we carried him for 6.5 years. And then he has a breakthrough season, and was gone soon after. MU fans, you would be as disgusted had C Ronaldo left in 2007 and not 2009.

godof86
Is Van Persie Slipping Sadly Into The Night?

G

ood grief. Someone guessed that the form English player at the moment might be in his national side with some other players? And that's espionage? Now if they discovered that Emile Heskey was going to be in the starting line up.... at right back.... THAT would be espionage. Give it a rest Roy.

RogerRedHat
Hodgson hits out at Kane leak

H

e may get away with if Liverpool can swap the video with one of Skrtel dancing or something, but if they review the one shown on TV he's screwed.

hump3.
Skrtel denies violent conduct

Footer 365

European Qualifiers round-up: Wins for Germany, Portugal and Romania

Goals from Marco Reus and Thomas Muller gave Germany victory over Georgia while Portugal beat Serbia to go top of Group I.

Luis Suarez rules out joining any English club but Liverpool

Luis Suarez refused to rule out a return to Liverpool and insists he will never play for another Premier League club.

Scotland 6-1 Gibraltar: Steven Fletcher scores hat-trick in European Qualifier

Gibraltar scored their first competitive goal, but Steven Fletcher's hat-trick helped Scotland win 6-1 at Hampden Park.

Mail Box

FA Refusing To Learn From Germany

We have a postcard from Germany in the Mailbox highlighting how Greg Dyke's quick-fix approach is all wrong. Also, the clamour for Kane, and size matters, apparently...

Where's The Love For Walcott?

Theo Walcott is wanted by neither Arsenal or Liverpool fans in the afternoon Mailbox. Also, some good points on the FA skewed priorities, and glorious geekery...

© 2015 Sky Ltd. All Rights Reserved A Sky Sports Digital Media company