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Manchester United have £180m available for transfers but Glazers will limit Sir Alex Ferguson's kitty to £25m
Old Trafford debts mean manager unlikely to spend £80m Ronaldo cash
1 Jun 2010 08:10:00
EXCLUSIVE
By Wayne Veysey | Chief Correspondent
Manchester United have a staggering £180 million in their transfer coffers but the club have told investors that the kitty can be guaranteed only £25m each financial year, Goal.com UK can reveal.
United’s latest set of financial figures released last Friday revealed that the £80m Cristiano Ronaldo windfall has not yet been spent.
MORE...
Given that the Old Trafford club also have a further £75m credit facility available, in theory there is £180m available to spend on players, which would give Sir Alex Ferguson a budget to rival Manchester City’s.
The reality, though, is somewhat different. The quarterly results for the period January to end of March 2010, which take in the first nine months of the financial year, showed that the Glazers are continuing to increase the debt burden on the club despite the healthy growth in matchday, media and commercial revenue.
Although the overall debt in the club has decreased from £543.3m year-on-year to £520m, it has increased by £12m since the Glazers took out a £500m bond in January to refinance what the club calls their “senior debt”.
The accounts of Red Football Ltd, United’s holding company, show a cash balance of £95.9m, but around £45m of it will be paid in interest. The figures also disclosed that the club lost £40.7m in a disastrous interest rate swap secured as part of a 2007 financing arrangement.
The fear of many United supporters is that the Glazers will dip in to the Ronaldo money to partially repay the PIK debt.
When the bond was issued, the club said that net spending would average £25m. During the current financial year, the net spend on players is £26.4m following the transfer last month of Ben Foster to Birmingham City.
This takes into account the purchases of Antonio Valencia, Gabriel Obertan, Mame Biriam Diouf, Chris Smalling and Javier Hernandez but not the sale of Ronaldo, who moved to Real Madrid at the end of the 2008-09 financial year.
Given that Sir Alex Ferguson appears to have reached his limit for the current financial year, it suggests that any summer spending will come after June 30.
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By Wayne Veysey | Chief Correspondent
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Manchester United have a staggering £180 million in their transfer coffers but the club have told investors that the kitty can be guaranteed only £25m each financial year, Goal.com UK can reveal.
United’s latest set of financial figures released last Friday revealed that the £80m Cristiano Ronaldo windfall has not yet been spent.
MORE...
- Comment: United have the best owners among the Premier League big boys - the proof is in the trophies
- Ferguson's summer catalogue: What United could buy if Glazers loosen the purse strings
Given that the Old Trafford club also have a further £75m credit facility available, in theory there is £180m available to spend on players, which would give Sir Alex Ferguson a budget to rival Manchester City’s.
The reality, though, is somewhat different. The quarterly results for the period January to end of March 2010, which take in the first nine months of the financial year, showed that the Glazers are continuing to increase the debt burden on the club despite the healthy growth in matchday, media and commercial revenue.
Although the overall debt in the club has decreased from £543.3m year-on-year to £520m, it has increased by £12m since the Glazers took out a £500m bond in January to refinance what the club calls their “senior debt”.
The accounts of Red Football Ltd, United’s holding company, show a cash balance of £95.9m, but around £45m of it will be paid in interest. The figures also disclosed that the club lost £40.7m in a disastrous interest rate swap secured as part of a 2007 financing arrangement.
Digging deep? | Glazers could open up funds
The fear of many United supporters is that the Glazers will dip in to the Ronaldo money to partially repay the PIK debt.
When the bond was issued, the club said that net spending would average £25m. During the current financial year, the net spend on players is £26.4m following the transfer last month of Ben Foster to Birmingham City.
This takes into account the purchases of Antonio Valencia, Gabriel Obertan, Mame Biriam Diouf, Chris Smalling and Javier Hernandez but not the sale of Ronaldo, who moved to Real Madrid at the end of the 2008-09 financial year.
Given that Sir Alex Ferguson appears to have reached his limit for the current financial year, it suggests that any summer spending will come after June 30.
Become a fan of Goal.com UK's Facebook fan page for all the latest news and insight into everything related to the beautiful game!
| Sign up with 188BET for a FREE bet up to £25 – Great Prices, Every Game |
|
| Open an account with Sportingbet today and get up to £50 in free bets! |
|
| Sign up with William Hill for a free bet up to £25 |
|
| Sign up with bet365 for a free bet up to £200 |
|
| Sign up with Paddy Power - Bet £10, Get £20! |
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