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Manchester United owners the Glazers default on more American shopping mall mortgage payments - report
25 Aug 2010 10:37:00
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Manchester United's owners, the Glazer family, are facing up to more financial issues relating to their business interests in the United States, according to a report from The Guardian.
Four more of the shopping malls owned by the family have fallen into default on their mortgages, meaning that nine in total have defaulted — with four of those actually going bankrupt.
A further 29 out of the 68 malls owned by the Glazers' First Allied Corporation are now so empty of retail units that the revenue they generate does not cover the mortgage payments.
The interest rate charged on United's enormous 'payment-in-kind debts' is set to rise from 14.25 per cent to 16.25% this month, so the news comes at a bad time for the Glazers.
First Allied is the only business the Glazers run apart from the Tampa Bay Buccaneers NFL franchise, and the report claims that it is making income above the malls' running costs of only $9 million (£5.8m) a year.
United are saddled with huge debts as a result of the takeover by the Glazers. Investment analyst Ansy Green, who has investigated and written about the situation at Old Trafford, believes the situation is one of great concern.
"They show that the Glazer family's only significant other business is making almost no money, and certainly not generating the cash to reduce United's massive debts," he said.
"The family's shopping malls are afflicted by low occupancy rates, more have fallen into default, and whatever David Gill says, there appears no doubt that Manchester United itself will be made to service these useless debts and pay huge interest payments, all money which could have been spent signing players."
Manchester United's owners, the Glazer family, are facing up to more financial issues relating to their business interests in the United States, according to a report from The Guardian.
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Four more of the shopping malls owned by the family have fallen into default on their mortgages, meaning that nine in total have defaulted — with four of those actually going bankrupt.
A further 29 out of the 68 malls owned by the Glazers' First Allied Corporation are now so empty of retail units that the revenue they generate does not cover the mortgage payments.
The interest rate charged on United's enormous 'payment-in-kind debts' is set to rise from 14.25 per cent to 16.25% this month, so the news comes at a bad time for the Glazers.
First Allied is the only business the Glazers run apart from the Tampa Bay Buccaneers NFL franchise, and the report claims that it is making income above the malls' running costs of only $9 million (£5.8m) a year.
United are saddled with huge debts as a result of the takeover by the Glazers. Investment analyst Ansy Green, who has investigated and written about the situation at Old Trafford, believes the situation is one of great concern.
"They show that the Glazer family's only significant other business is making almost no money, and certainly not generating the cash to reduce United's massive debts," he said.
"The family's shopping malls are afflicted by low occupancy rates, more have fallen into default, and whatever David Gill says, there appears no doubt that Manchester United itself will be made to service these useless debts and pay huge interest payments, all money which could have been spent signing players."
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