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Crisis in Football GLAZERS SAY NO CASH FROM CLUB
| GLAZERS SAY NO CASH FROM CLUB |
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19 November 2010 Fan groups want to know how the Glazers are funding the loan repayment. "Now is the time for the Glazers to finally come clean and tell the truth about what is going on at Manchester United and what their plans are,'' Duncan Drasdo, chief executive of Manchester United Supporters' Trust, said in a statement. "What have they got to hide? No more secrecy. No more spin. Just tell the fans the truth.'' Even repaying the loans does not leave the club in the debt-free state it was in before the Glazers' takeover. The quarterly results to September 30 for United's parent company Red Football revealed that the club's gross debt dropped to £509.4m (US$820m) from £521.7m (US$840m) on June 30. Forbes magazine recently estimated that United is worth US$1.8 billion -- making it the most valuable football team in its rankings for the sixth straight year Manchester United's American owners said they have not drawn cash from the Premier League club to fund the repayment of high-interest loans. The Glazer family has told lenders it plans to pay off £220m (US$353m) of debt by November 22 that was used to fund their 2005 takeover. However, it's unclear where the money is coming from. The loans, which carry an interest rate of 16.25 percent, have provided a focal point for fans' anger toward the Glazers since their leveraged buyout. In the latest set of financial results the Glazers didn't confirm the loan repayment but announced they haven't drawn any funds from the club. "The board notes recent press speculation. The board can confirm that there has been no dividend of club cash,'' a board statement said.{jcomments on}
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