Glazer family was asked by The Manchester United Supporters Trust (MUST) to use the income from their proposed Singapore Stock Market flotation to remove the club’s huge debt.
Although MUST have constantly opposed the Glazer families ownership of Man United, they are impressed with the latest revenue figures that were revealed yesterday by commercial director Richard Arnold.
MUST were also happy with how Sir Alex Ferguson managed to collect a record 19th title and a place in last season’s Champions League final with minimal investment in his squad and they now want the debt to be totally cleared to see you United back as a considerable financial force in football.
“The commercial team at United are clearly smart operators and we welcome continued growth in the business but to be fair we’ve seen growth consistently year after year long before the Glazers took over,” they said.
“There is only one man who is responsible for that consistent success – the same one responsible for success on the pitch – Sir Alex Ferguson.
“Without the incredible performance on the pitch and the fantastic loyal support of thousands of match-going fans, as well as millions more around the world, there would be no platform on which to build the growth of the business.
“So while the financial results are strong, they also show that the Glazers have taken another £51m out of the club in the last 12 months as well as using an even bigger chunk (£64m) of the club’s money to pay down part of their bond debt.
“This is money that the club has generated and money that should stay in the club rather than go to Florida or to pay down the Glazers’ debt and interest.
“That’s why we’re calling on the Glazers to use any share sale in Singapore to clear all of the club’s debt – debt that they put on the club and they must take responsibility for.”
The Singapore venture provides the backdrop to United posting record operating profits of £110.9million.
This comes from record revenue of £331.4million – an increase of £45million from last year and passing £300million for the first time.
Commercial turnover for the Premier League title winners and Champions League finalists reached £103.4million, with match-day turnover (£108.6million) and media (£119.4million) also up and Net debt is down to £308.3million due to the club’s vast cash reserves.
As the New York post stated, United can make around £1.82 billion when the Premier League champion is floated on an Asian stock market.
Will the glazers clear the debt after the flotation?
i hope they clear the debts
There can be no UTD fan not worried by the debt . We do though beleive as long as the team preforms we are safe . We were the best of a bad bunch last season. If Citeh produce the goods this time the Glazers will know they were stood on a volcano !
They are businessmen and American to boot the bottom line is their only goal .
Actually I’m not worried about the debt, though of course I dislike the fact we waste £45m a year in interest.
However, if the Glazers use the proceeds of the flotation to pay off the debt rather putting it into their own pockets, which they could do, won’t it be because they intend to make the club pay them (and the new shareholders) dividends instead?
For the Glazers it’s all about making money and if they think United can be a top team while still making tens of millions more than they spend then they will find a way to helping themselves to that surplus.
If the club really was valued at £2bn then a 3% dividend yield would mean an annual dividend payment of £60m a year! So we could actually be better off with the debt.
Let’s wait to see if they clear the debt, if they dont then we can start real opposition.
The same group who are fighting the glazers are the ones who opposed the Sky take over, Sky would not have had us in this mess.
All Down to Fergie the greatest ever Red.
Manchester United have never been bailed out by the governments like Barca and Madrid. All this money started years ago in Italy and spain when the top clubs could spend as much as they wanted then go bankrupt the get bailed and do it all again. How were other clubs to compete? What really gets me is, you dont hear blatter bringing Spain to question. Fifa corrupt to the core.
I totally agree with you Paul… If they clear the debt ,then we can have postive view abt them ….fifa? We’ll need a special website to talk about their corruption!