Manchester United's controversial American owners the Glazer family will pay off £220 million in loans on November 22 as speculation mounts concerning the origin of the funds to do so. The loans that will be paid later this month originated in 2005 from the original purchasing of the club from three different hedge funds.
Manchester United’s Glazer Family Will Pay Off £220 Million In Loans
While any time a loan is eliminated equals a step forward, at least financially, the manner in which the Glazer family is proceeding with the atonement simply comes as a shock to supporters and onlookers. Private funds, not club assets, will be used by the Glazers to come good on the debt.
Further questions surround the sum of £220m that is reportedly available in large part because the club's financial situation continues to be uncertain. United recently announced a record loss of £83.6 million this past June but still found the cash needed to secure Wayne Rooney for another five years in a lucrative contract. At times, the Glazer's financial dealings fail to add up.
The BBC’s David Bond has described the recompense of the payment-in-kind loans (PIK) as ‘potentially removing a debt time bomb which was ticking away under Old Trafford’. While no one in the football world believes the news of the Glazer debt repayment as negative or a step in the wrong direction, the mysterious acquisition of funds has definitely raised an eyebrow or two. Simply stated, no one knows where the Glazers are getting this kind of cash from when the club continues to struggle financially.
For United supporters, the news comes as a progressive step forward in the overall financial well being of the club. Although the Glazers are still widely despised among most United fans, no one associated with the club will see the repayment of the PIK loans as a step back.
See More:
