Manchester United, Arsenal Take Moves For The Future

ManU, RBS Could Be Close To Refinancing Deal

Manchester United “is in talks with financial institutions to borrow up to [US$925.6M] against the value of its future ticket sales,” according to Andrew Murray-Watson of the London TELEGRAPH. It is believed that Royal Bank of Scotland is drawing up a plan that would see the club “securitise future match-day revenues over a 25-year period.” The funds could be used to replace the “more expensive debt” of US$1B used by the Glazers to buy the club last year. JP Morgan “is also looking at restructuring plans” for the Glazers (London TELEGRAPH, 7/9).

BUILDING AN ARSENAL: BLOOMBERG NEWS’ John Glover reported Arsenal “plans to raise [US$478M] this month in the first public sale of asset-backed debt by a European team.” Arsenal “will use the money to repay a loan that financed its new stadium and save about [US$2.2M] in annual interest.” London-based investment banker Stephen Schechter said, “This deal will dramatically lower debt service charges. By selling top-rated bonds, you open up to a whole new class of investor.” Barclays Capital and Royal Bank of Scotland are underwriting the deal. Arsenal Managing Dir Keith Edelman previously said that the new stadium will increase annual sales by as much as US$92.5M. The team made US$62.5M from home games last season (BLOOMBERG NEWS, 7/7).