The Rags debt

[shadygiz]

<a class="postlink" href="http://www.joinmust.org/thefacts/theirdebt.php" onclick="window.open(this.href);return false;">http://www.joinmust.org/thefacts/theirdebt.php</a>

<a class="postlink" href="http://soccerlens.com/manchester-uniteds-debt-analysed/7356/" onclick="window.open(this.href);return false;">http://soccerlens.com/manchester-united ... ysed/7356/</a>

 

[Prestwich_Blue]

In their last accounts, their borrowing was just under £667m. The net interest payable on that every year is over £81m but it seems that they only actually paid about half that as the interest on some of the borrowing is deferred.

Part of the debt is in something called Payment In Kind notes. These attract interest at a whopping 14.25%, almost double the rate City pay on their bonds. They don't have to make any repayments on these but the interest gets added on then they have to pay them off by August next year I think.

They generated £87.5m cash last financial year so if they had to pay the full whack of interest and capital there wouldn't be much money for new players unless they sold first. They aren't going broke at the moment by any means but they may struggle to refinance their PIK notes and they may ave to pay interest and capital when they do, which will eat a big hole in their cash flow.

 

[Big Liam]

In their last accounts, their borrowing was just under £667m. The net interest payable on that every year is over £81m but it seems that they only actually paid about half that as the interest on some of the borrowing is deferred.

Part of the debt is in something called Payment In Kind notes. These attract interest at a whopping 14.25%, almost double the rate City pay on their bonds. They don't have to make any repayments on these but the interest gets added on then they have to pay them off by August next year I think.

They generated £87.5m cash last financial year so if they had to pay the full whack of interest and capital there wouldn't be much money for new players unless they sold first. They aren't going broke at the moment by any means but they may struggle to refinance their PIK notes and they may ave to pay interest and capital when they do, which will eat a big hole in their cash flow.

the football clubs cashflow. The Glazers cashflow is something entirely different.