Old Trafford

Next Game

Man Utd v Tottenham

Saturday, 08 August 2015, 12:45

Barclays Prem

Last Game

Man Utd 0 - 2 PSG

Thursday, 30 July 2015, 02:00

Int Champs Cup North America

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

A

ll very well selling all midfield and strikers but unless we bring anyone in that is better than what we had then it will be a terrible transfer window in my view. Sorted out the defense but our midfield and striker options look very light.

bigo
Spurs Halfway To The Perfect Summer

L

ove it when Jose accuses others of being defensive, cynical and playing to win. If I was Wenger, I'd get that quote laminated and framed - surely the biggest compliment he's ever received from Mourinho. You've got him riled Arsene - you're relevant again!

suarez_blind
Jose rues pitch and weather after defeat

I

t's wrong to be making a joke out of Bender's name at the expense of gay people. It's the kind of childish, uncivilised thing that Football365 would deride and ridicule if it was another media outlet saying. Why is there a need for jokes like this? Does it make your writers feel like men? F365 might suggest that I 'lighten up', but it is genuinely traumatic for people who have been oppressed all their lives to be the butt of jokes, and to be told...

anamsport
The Beeriod Gossip

Footer 365

Di Maria joining bigger club - Thiago Silva

Thiago Silva believes Angel Di Maria is joining a club in Paris Saint-Germain that are bigger than any apart from Barcelona and Real Madrid.

Wenger: 'Nothing happening' with Benzema

Arsene Wenger has dismissed speculation linking Arsenal with Real Madrid striker Karim Benzema.

Everton duo John Stones and Kevin Mirallas picked up knocks on Sunday

Roberto Martinez has reminded Chelsea that Everton are a "big club with nine league titles" - and do not need to sell John Stones.

Mail Box

Not Just A Friendly. This Had Meaning...

Arsenal fans are very excited about beating Chelsea (don't remind them about last year), while there is criticism for BT and a football fan tired of being screwed by TV...

Neville Has It Wrong On Chelsea...

One Mailboxer says that the Neviller has it slightly wrong on Chelsea. Plus thoughts on sexy Saints, pre-season reviews, Connor Wickham and televised analysis...

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