LONDON (AP)—Manchester United’s American owners said Tuesday they have not drawn cash from the Premier League club to fund the repayment of high-interest loans.
The Glazer family has told lenders it plans to pay off 220 million pounds ($353 million) of debt by Nov. 22 that was used to fund their 2005 takeover.
The loans, which carry an interest rate of 16.25 percent, have provided a focal point for fans’ anger toward the Glazers since their leveraged buyout.
In the latest set of financial results Tuesday, the Glazers didn’t confirm the loan repayment but announced they haven’t drawn any funds from the club.
“The board notes recent press speculation. The board can confirm that there has been no dividend of club cash,” a board statement said.
Fan groups want to know how the Glazers are funding the loan repayment.
“Now is the time for the Glazers to finally come clean and tell the truth about what is going on at Manchester United and what their plans are,” Duncan Drasdo, chief executive of Manchester United Supporters’ Trust, said in a statement. “What have they got to hide? No more secrecy. No more spin. Just tell the fans the truth.”
Even repaying the loans does not leave the club in the debt-free state it was in before the Glazers’ takeover.
The quarterly results to Sept. 30 for United’s parent company Red Football revealed that the club’s gross debt dropped to 509.4 million pounds ($820 million) from 521.7 million pounds ($840 million) on June 30.
Forbes magazine recently estimated that United is worth $1.8 billion— making it the most valuable football team in its rankings for the sixth straight year.
A third of the way through the Premier League season, the 18-time English champions are third in the standings—three points behind defending champion Chelsea.
The Glazer family has told lenders it plans to pay off 220 million pounds ($353 million) of debt by Nov. 22 that was used to fund their 2005 takeover.
However, it’s unclear where the money is coming from.
The loans, which carry an interest rate of 16.25 percent, have provided a focal point for fans’ anger toward the Glazers since their leveraged buyout.
In the latest set of financial results Tuesday, the Glazers didn’t confirm the loan repayment but announced they haven’t drawn any funds from the club.
“The board notes recent press speculation. The board can confirm that there has been no dividend of club cash,” a board statement said.
Fan groups want to know how the Glazers are funding the loan repayment.
“Now is the time for the Glazers to finally come clean and tell the truth about what is going on at Manchester United and what their plans are,” Duncan Drasdo, chief executive of Manchester United Supporters’ Trust, said in a statement. “What have they got to hide? No more secrecy. No more spin. Just tell the fans the truth.”
Even repaying the loans does not leave the club in the debt-free state it was in before the Glazers’ takeover.
The quarterly results to Sept. 30 for United’s parent company Red Football revealed that the club’s gross debt dropped to 509.4 million pounds ($820 million) from 521.7 million pounds ($840 million) on June 30.
Forbes magazine recently estimated that United is worth $1.8 billion— making it the most valuable football team in its rankings for the sixth straight year.
A third of the way through the Premier League season, the 18-time English champions are third in the standings—three points behind defending champion Chelsea.
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