Man Utd owners set to repay loans

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Manchester United's American owners are to pay off their high interest payment-in-kind (PIK) loans, estimated to be worth about £220m.

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I jumped and punched my ceiling when I heard this news. Brilliant! So long as they don't take the money out of the club, we'll be a LOT better off without these loans...
 
£220M taken out of the clubs debts is a very good thing, but considering we'll still be £500 odd million in debt it's not massive.

Also, it depends whether they are taking money out of the club to pay these loans off, in which case it won't help a lot.

This quote however, really made me upset;

BBC Sport said:
United had no debts before the Glazers, who also own American Football side the Tampa Bay Buccaneers, took control in 2005.
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The results get published today i think, which should clarify the clubs money has not be used in paying off these debts, it is most likley another loan with lower interest rates has been taken out, but it is rumoured to not be secured against Manchester United football club.

Hopefully this is true and we can go on and become a better side.
 
DMF said:
£220M taken out of the clubs debts is a very good thing, but considering we'll still be £500 odd million in debt it's not massive.
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It's less than half of our overall debt, true, but it's the interest rate that was worring. At 26% (Or something like that) per year, I wouldn't like us to keep those loans around any longer than we have to. One years worth of interest was about £60m alone.
 
Scott* said:
The results get published today i think, which should clarify the clubs money has not be used in paying off these debts, it is most likley another loan with lower interest rates has been taken out, but it is rumoured to not be secured against Manchester United football club.

Hopefully this is true and we can go on and become a better side.
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Another rumor is they have sold part of other assets. Anyways its a good news considering they have not used club money.

It is possible the Glazers could have sold a chunk of the club or sold off other business interests, which include their Tampa Bay Bucaneers NFL franchise, or they might have refinanced.
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Great news, anything less we pay on interest is a good thing.
 
Its a good thing only if they haven't payed it off with another loan but i dont know the insides obviously.
 
It would still be beneficial if they've took out a much lesser interest rate loan though, but obviously would prefer it not to be another.
 
Well all our revenue is up on the same time last season. I guess that is a good thing. But where is this money coming from? Have the Glazers said?
 
What did they find Sir Alex's secret pension savings and decide to use it to pay of Utd's debt?
 
J0k3r said:
What did they find Sir Alex's secret pension savings and decide to use it to pay of Utd's debt?
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[ame="http://www.youtube.com/watch?v=jqm1EGtuQgQ&feature=related"]YouTube - tumbleweed 1[/ame]​

I'm glad they're paying it off though, should benefit the club, so long as they havn't created more debt to clear this.
 
hope its not secured against future season tickets sales, the loan was a big problem, but the interest payment was the real killer
 
Well, 3 ways. They could of paid the debt of;
1) Taking out another else where with lower interest rates to pay off the 220 million owed.
2) Taking the money from the club to pay the debt off; which I bet it would make them even more unpopular with the fans.
3) Quite unlikely, but selling part of the club or some assets to pay off the loans owed.
 
It says in BBC sport that they have taken a lower interest rate loan to pay off the higher 1. Either way, less interest payments are a good thing overall.

And off-topic, I <3 your sig Saints.
 
Shakhtardfc1 said:
It says in BBC sport that they have taken a lower interest rate loan to pay off the higher 1. Either way, less interest payments are a good thing overall.

And off-topic, I <3 your sig Saints.
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I suspected they were going to that. There was ever 3 options that were going to come up to pay the loans off.

Off Topic - Thanks Man ;)
 
Anyone know what these new loans are secured against?
 
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