3 thoughts on “United and the new increase in PIK Interest

  1. You have highlighted a point often raised by non-United fans I speak to when I discuss this matter, you are winning so whats the problem or as you put it:

    “Despite what you may think of the Glazer’s though, they’ve turned United into an even more profitable company (if you don’t include the interest payments of course).”

    I’m also reminded of the millions they initially spent and whilst I was grateful, you have to forego instant gratification and look at the long haul and in the long haul these millions they have spent are insignificant unless they can get their house in order. The increased interest rate will just make it worse I feel and you just have to think what will they do to combat that?

    Winning silverware isn’t certain as our rivals have stepped up and are closing the gap (some will even claim Chelsea have overtaken us) so they will need to pull funds from somewhere.

    It doesn’t bode well…

  2. You’re right, that’s generally one of the points I was trying to make. People often point out that under the Glazer’s:

    1) Revenue has gone up a lot
    2) We’ve been winning a lot of trophies

    Regarding point one, there’s no denying that the Glazer’s have been able to use their business contacts to boost revenues (our sponsorship income has improved considerably), but by paying these massive interest payments they’re essentially giving with one hand and taking with the other (although it does mean at least we pay very little tax!)

    Regarding point two, as I said, it’s not because of the Glazer’s that we’re winning trophies, you could have put a platoon of chimps in charge during that time and we’d have still won the league, it’s because of having a manager as good as Fergie, finding such a bargain like Ronaldo and Chelsea shooting themselves in the foot so much during that time that we were winning the league so easily.

    I think Chelsea probably have overtaken us and City are on their way, although Chelsea’s spending has decreased substantially over the last couple of years. The regulations to be introduced by UEFA courtesy of Mr Platini may help our cause, my general understanding is that club’s won’t be allowed to spent too much more than what their profit is, but that is still two years off.

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