Rag trade

[Kinky by name]

The Glazer family is understood to be preparing to pay off around £220 million in high-interest 'payment-in-kind’ loans borrowed to fund the purchase of Manchester United.

In a letter to the holders of the loans, Joel Glazer is understood to have committed to pay off the loans on Nov 22. It is unclear how the Glazers have raised the funds to pay off the loans but according to Bloomberg, which revealed the loan repayment last night, club funds will not be used.

In a document known as a voluntary free-payment notice issued to the holders of the loans Manchester United’s holding company Red Football Joint Venture Limited commit to “repay 100 per cent from the outstanding loan on Nov 22”.

 

[Hamann Pineapple]

So what's happened ? Have they won at cards with the Sheikh ? Are they reborrowing ? Or have they sold a stake in the club ?

 

[Kinky by name]

a. refinanced loans at a better interest rate or
b. sold a stake in the club or
c. sold all of the club

...combination of all three

 

[fbloke]

This is really,really interesting on so many levels.

Firstly, if they have used their own money where the hell did it come from? And of course what logical reason is there for doing it now?

Secondly, if they are not using the club revenues is that because they are going to pay down club debt in preparation for a sale (part or whole) fo United.

IMO the Glazers saw the Liverpool scenario play out and were scared by that and the prospect of losing the cash cow.

They may also be paying down debt ready for a sale or even, in a crazy twist a re-float on the FTSE?

As I say, very, very interesting!

 

[Kinky by name]

This is really,really interesting on so many levels.

Firstly, if they have used their own money where the hell did it come from? And of course what logical reason is there for doing it now?

Secondly, if they are not using the club revenues is that because they are going to pay down club debt in preparation for a sale (part or whole) fo United.

IMO the Glazers saw the Liverpool scenario play out and were scared by that and the prospect of losing the cash cow.

They may also be paying down debt ready for a sale or even, in a crazy twist a re-float on the FTSE?

As I say, very, very interesting!

As far as I can make out it eases their personal debt burden not the club's, though if they draw from the club to pay that burden then it may well help the club financially. A new deal for Rooney, paying off PIKs; something's afoot -though knowing the Glazers it's unlikely to be 12 inches.<br /><br />-- Tue Nov 16, 2010 1:43 am --<br /><br />or after the sheik's latest meeting he's just realised he bought the wrong club!

 

[fbloke]

One thing is certain whatever changes they make to the financing of United it wont be in the clubs favour.

 

[Bluemoon115]

Well if we were to take the CR7 (lol) money, and add that to the potential WR65+ money, would that be part of those funds?

But this is interesting.

VERY interesting.

 

[Matt Diablo]

no its more than very interesting, its very very... very interesting

 

[fbloke]

no its more than very interesting, its very very... very interesting

Are you taking the piss ;-)

If you are I find that intriguing. Very,very intriguing!

 

[Julie]

Have they been bought out or something? how are they repaying that much debt without touching club funds? have they sold one of their other business's perhaps?