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

E

ven if United were to sign CR7 & Messi to play upfront, the fact remains Fletcher and Cleverly are playing in midfield. That's where the problem is. Fletcher is too slow with an awful pass, while Cleverly is simply rubbish

mrunited4life
Di Maria - A Signing of Necessity, or Opportunity?

T

hese days, these days, you can't say something racist without somebody saying that you're a racist.

tk421
'Wrong' Views Not Silenced By Shouting...

D

rop Rooney (he's so disappointing, overrated and overpaid), and play Di Maria and RVP upfront, much like the set up at the Netherlands team with Roben and RVP...

eric bush3
Di Maria - A Signing of Necessity, or Opportunity?

Footer 365

Transfer news: Nikola Zigic's agent confirms Arsenal's interest

The agent of ex-Birmingham striker Nikola Zigic has told SPORT that Arsenal have expressed an interest in his client.

Premier League: Crystal Palace unveil Neil Warnock as new manager

Neil Warnock has returned to Crystal Palace after being named as the new manager on a two-year deal.

Manchester United signing Angel di Maria claims he was forced out of Real Madrid

Manchester United signing Angel di Maria has claimed he never wanted to leave Real Madrid.

Mail Box

Should Kagawa Play Ahead Of Mata?

That's one question posed in the afternoon mailbox, although it looks like the Japanese playmaker could soon be on his way. Plus, tipping Palace to go down under Warnock...

Well, This Isn't Going That Well Is It?

Plenty of fall out from Manchester United's shambolic 4-0 League Cup defeat, plus thoughts on Van Persie, Arsenal strikers, Benik Afobe, Celtic and Astroturf...

© 2014 British Sky Broadcasting Ltd. All Rights Reserved A Sky Sports Digital Media property