Archive → November 16th, 2010
As we’ve all seen on twitter along with one or two well known business sources the Breaking News is ”United owners to pay off £220 million loan”. This is that famous £138m PIK debt the glazers took out in 2005 to buy Manchester United or should I really say just take control. The bond holders currently own more of the club than they really do, they just don’t get a say and the fans pay the interest repayments. That debt is now worth over £220m and its known it will be paid off by the 22nd November but there are still questions. First and last is. Where has this money come from? This might be answered within an hour of this being posted or maybe never. I know the Glazers through, it always comes out in the end.
Has it come from the club? Well business sources say, No, none of the clubs money will be used to pay it off even through the bond document would allow this to happen. If the source to the business source is David Gill, then yes 100% it did come from the club. He doesn’t really know what’s going on.
Rumour mill has been throwing afew others.
They they taken out debt to pay debt? This is possible. They did this with United bank debt and converted into bonds. This didn’t really do alot. The debt is still there and still has to be paid off sooner or later.
Is a 3rd party involved? This is also possible but I’d say more unlikely than the first. This is interesting. Does the 3rd party get a say on goings on? Do they own part of the club? Who is this 3rd party. Other Yanks? A United fan? One I had put too me was could it be the Red Knights? After the summers goings on I’d find that highly unlikely but its been rumoured debt in the form of the bonds could be used as a possible takeover tool.
Selling the PIK debt to someone who is meant to be on the side of the fans while keeping full control could be an option. For the Glazers it could be a good option and a way out while still increasing the value of the club. Using the clubs money was a no go but selling to a fan friend? To remove some anger and hate? Did we finally bother them that much? With the Government aiming to produce plans, UFEA wanting to introduce certain rules and the increasing protests? Bloomberg reported they were scared to use the clubs cash. Am I getting carried away? Yes, that won’t have happened so don’t even think about it.
Paid Off Or Not. They Still Have To Go.
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