SportsBusiness Daily — Sports Business Resources — your sports business news and information source. Learn More
Advanced
Home About Us Advertise With Us Marketplace/Classifieds College & University Program Subscribe/Trial My Account

Thursday
May 8, 2008
Print This Issue


 
MOST VIEWED STORIES
View the top 20 stories
 
Recent Issues
Franchises

Poor Pitch: ManU Records $113.3M Loss, Owes Up To $1.5B To Creditors

 
English Premier League (EPL) club Manchester United for the year ending June 30, 2007, recorded an overall loss of $113.3M (all figures U.S.), and accounts for ManU holding company Red Football Joint Venture Ltd. show total borrowings were up to $1.3B, "by far the highest of any English football club, ever," according to David Conn of the Manchester GUARDIAN. The total "owed to all creditors, including the banks," was up to $1.5B and includes $109.4M that ManU owes to other clubs in transfer fee installments on players signed. The total interest payable by the club on its borrowings was $158.2M, although "only [$82M] was actually paid." The rest, which "accrued on the millions owed to hedge funds," is "allowed to roll up until the whole amount has to be repaid in 2016," or until club Owner the Glazer family can refinance. The Glazers currently owe $296.8M to hedge funds at 14.25% interest a year, or $50.0M in '07-08. The Glazers in '07 "tried to refinance but were unable to strike a deal with financial institutions," and a spokesperson acknowledged that the "credit crunch is making it more difficult now" (Manchester GUARDIAN, 5/6).

ON THE PITCH: SI.com's Gavin Hamilton noted ManU "invested heavily in new recruits on the back" of their EPL title in '07. Now, it "appears, that those players have yet to be paid for. It's a high-risk strategy that is dependent on further success." ManU in the coming weeks "could land an historic domestic and European double," by winning the EPL title and the UEFA Champions League. But if the club loses to Chelsea in the May 21 Champions League final, the Glazers' "complicated finances could start to unravel" (SI.com, 5/6).

Related Stories By Company Related Stories By Sport
TV Deal Gives EPL Teams Almost $1.59B
May 16, 2008 : SportsBusiness Daily

Struggling Economy Could Hurt EPL Clubs
March 18, 2008 : SportsBusiness Daily

Memorial ManU Scarves Flood eBay
February 12, 2008 : SportsBusiness Daily

ManU Reports Record Revenue, Profit
January 11, 2008 : SportsBusiness Daily

ManU Plans Global Sponsorships Strategy
January 8, 2008 : SportsBusiness Daily

MLS Crew Failing To Draw At The Gate
July 18, 2008 : SportsBusiness Daily

Beckham Draws Fans To Games, Merchandise
July 18, 2008 : SportsBusiness Daily

MLS Players Unhappy With SuperLiga Pay
July 17, 2008 : SportsBusiness Daily

RSL To Host '09 MLS All-Star Game
July 10, 2008 : SportsBusiness Daily

Kraft Group Assess Viability For Revs Venue
July 9, 2008 : SportsBusiness Daily

ALSO IN THIS SECTION


A Publication of Street & Smith's Sports Group
Privacy Policy - Terms of Service
© 2008 Street & Smith's Sports Group
All Rights Reserved