Manchester United Current Debt Situation
Manchester United co-chairmen, Joel and Avram Glazer with executive vice chairman and director, Ed Woodward – during United opening bell at the New York Stock Exchange.
Manchester United was formed as Newton Heath L and YR F.C in 1878 by the workers in the carriage and wagon works of the Lancashire and Yorkshire Railway’s Newton Heath depot. The club was at the verge of winding-up after owing about £2,500 debt in 1901. John Henry Davies, a local brewer came up and saved the club from its debt crisis and also changed the name of the club to Manchester United in 1902.
Before the Glazer family began accruing shares in Manchester United in 2003, the club was debt free. Most of the funds used by the Glazers in purchasing Manchester United were gotten in the form of loan, majority of which were against the Club’s assets – incurring interest payment of over £60 million per annum. The rest were gotten in the form of PIK loans (payment in kind loans ), which were later sold to hedge funds. The interest on PIKs climbed up at 14.25% per annum and by March 2010, the PIKs had gotten to around £207 million. This is how the Glazers started incurring debt for Manchester United. The once debt free Manchester United Football Club has now become the world’s most in-debt club – according to UEFA. Have you heard about United of Manchester Football Club?
Manchester United’s net debt has increased by £17.6 million over the past year, mainly due to the continued strength of the Us dollar against the Pound. The exchange rate is primarily affected by Brexit.
Top 10 Most In-debt Clubs In The World
Manchester United – €536 million
Benfica – €336 million
Inter-Milan – €306 million
Valencia – €285 million
QPR – €279 million
Ac-Milan – €249 million
CSKA Moscow – €224 million
Galatasaray – €222 million
Juventus – €209 million
As Roma – €208 million
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