Article by Real Mancs Are Blue
‘Manchester United’, Malcolm Glazers’ green and yellow army were today cast into further debt crisis as it was revealed interest rates on their debts have risen due to agreed repayments not being met.
Failure to meet the borrowers’ terms by 16 August meant the annual interest rose from 14.25% to 16.25%, with repayments estimated to increase by £38 million, or to put it in football terms, ‘4 Nemanja Vidics’ or ‘8 Darren Fletchers’.
As part of a struggle to repay bad debts last year, Malcolm refinanced the club through bonds, leaving himself a clause whereby he can takes £95m of the clubs £95.5m cash reserves to finance his own debt repayments, a fact that sent shockwaves through London and significant areas of Ireland.
It is the opinion of myself and others that these clubs should be forced to bring their debt into line and be run on a sound financial footing, even becoming a feeder club for more ambitious teams has not had the desired effect in reducing debt, it has only increased.
The FA and government need to step in to ban all transfer activity on these debt ridden clubs until they can prove they are not being financed with spiralling debt.
The real sadness in all of this is how Malcolm Glazer has been victimised. One of the most popular, charismatic owners in world sport has been vilified by the Stretford massive when truth be told, dwindling season ticket sales and the ridiculous fad of purchasing unofficial green and yellow neckwear has only escalated the debt problem.
We have to ask ourselves what will happen when Stretford fail to get in the top four, without the revenues of champions league and their global plastic fan base moving on the clock is surely ticking on the red side of the borough of Greater Manchester. Dark times ahead at the Theatre of Debt.