Glazer’s pledge is a huge boost to future of Manchester United
As of Monday 22nd November, Manchester United’s debt will be cut by £220m after the Glazer family pledged to repay the high interest PIK (payment in kind) loans.
In what is a huge boost to the future of Man Utd, the Glazers rejected the offer of borrowing £70m from the club’s revenues in January, but will finance the payment of the debt personally.
This is likely to mean that the Glazers have borrowed from other sources at a lower interest rate, but this debt will not be attached to club and the full Man Utd debt will be the £526m bond agreed earlier in the year.
Despite many of Manchester United’s fans enjoying the current plight of Liverpool, the takeover of the Anfield club brought to reality just how precarious Manchester United’s position was.
But with the Glazers taken it upon themselves to pay off the loans that they are liable for instead of using the club’s finances, it seems the Glazers are taking heed of the Green and Gold demonstrations.
The high interest debts carried interest rates of 16.25% but with these now settled, the financial pressure on the club has eased.
Which is good news for all parties concerned with the club as it’s strives for its 12th Premier League title.
Considering Chelsea’s stutter after such a strong start, Man Utd are now 3/1 to win the Premier League after drifting to 5/1 earlier in the season.
Sir Alex Ferguson’s side host Wigan on Saturday in what could be the return of Wayne Rooney, and a win for Man Utd could put them level on points with Chelsea who face a tricky away tie at St Andrews.
Man Utd are 1/5 to beat Wigan while Chelsea are 8/15 to beat Birmingham.
Arsenal play Tottenham Hotspur and are 4/6 to win. See the full Barclays Premier League football betting odds here.