Man United Losing Millions

22 February 2012

Manchester United’s current account is haemorrhaging money like an arterial wound.

The debt-saddled Red Devils have lost almost £100 million from their bank balance in just in six months.

United are struggling to balance the demands of their monthly massive debt repayments, payable since the Glazer family borrowed the club’s own money to buy it in the kind of leveraged deal that led to the global financial meltdown.

At the same time, United need to keep up in the transfer market in order to retain their place at the top of English football.

The club’s current account has diminished from £150.6 million to £50.9 million in six months mainly after it spent £47 million on transfers, as well as £5.3 million in the most recent quarter alone on buying back bonds.

Since selling Cristiano Ronaldo to Real Madrid for a staggering £80 million, United’s bank balance has been artificially inflated. But now that money is gone, and the club’s cash at hand is greatly reduced.

Opponents of the Glazer family’s debt inducing ownership remain worried that United’s debt spiral will badly affect the club’s status in the future.

Manchester United Supporters' Trust said: "Manchester United revenues continue to grow strongly although costs are increasing just as quickly so pretty much negating that growth. However the key figures of interest to supporters show the Glazers have now spent every penny of the money received from the sale of Ronaldo, and more. That's now £92.8m spent on buying back their own bond debt that they loaded on to our club. So statements at the time that all of the Ronaldo money would be made available for reinvestment were clearly just spin.

"Since the sale of Ronaldo [in June 2009] net transfers [not including Ronaldo] have totalled just £90m while they have taken out of the club £225m to cover their debt payments and interest. What could the club have done with that extra £225m? Cheaper tickets for loyal fans, investing massively in the squad and stadium, developing and retaining the best youth players, competing on an equal basis with the very best teams in Europe. This is the true cost to Manchester United of the Glazers' ownership."