Man Utd debt soars past £700m 21/01/2010 |
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Debts at Manchester United’s parent company have past £700m for the first time.
The latest accounts for Red Football Joint Venture, which is owned by the Glazer family, show a debt of £716.5m to the year ending June 30, 2009 – up from £699m.
The biggest rise came in payment-in-kind (PIK) loans, which typically have a higher interest rate. They increased £27m to £202m.
More than £68m was paid in interest alone, the accounts show, but unlike the previous year, the company made an overall profit of £6.4m. In 2008, it reported a loss of £47m.
The overall debt figure was not contained in the prospectus for a £500m bond issue released last week.
A spokesman for the Glazer family insisted that the debt did not have a bearing on the operation of the club.
He said: "The club has a £50m surplus to work with once the interest payments have been made."
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