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Manchester United have accumulated a staggering £942 million in interest after Glazer’s 19-year reign.
Before the American family completed the loan buyout in May 2005, the club was debt free and in control of its own financial future.
Simply put, a leveraged buyout is “the process of buying another company using money from outside sources, such as loans and/or bonds, rather than from corporate earnings.” So putting the club into huge amounts of debt from the outset as they pay back interest ever since.
The fans were aware of this danger and took to the streets to protest, but unfortunately to no avail as the club relented and accepted the poor Glazers deal.
Finance expert Kieran Maguire posted on X the consequences of a contract signed 19 years ago.
The cumulative interest owed by the club is now approaching the staggering £1 billion mark.
Manchester United’s interest costs over the 19 years of Glazer’s regime are £942 million pic.twitter.com/PkbPelHORx
— Kieran Maguire (@KieranMaguire) May 29, 2024
In the highly competitive world of the Premier League where the traditional top six has become more of a top eight and Aston Villa and Newcastle United possess the money and ambition to stay.
This can be seen in the fact that the Red Devils finished at the bottom of the pile this season in the mini league.
Additionally, in the era of the Premier League’s Profitability and Sustainability Rules, United, like any club, need to cut costs and get their finances in order if they are to be competitive in the transfer market.
There was some relief from the pain of Glazer ownership when INEOS took over the reins of the club in December 2023 and set about implementing a series of cost-cutting measures to spend the club’s money more wisely.
In addition, they also promised not to take the club into further debt as part of their contract.
However, not much information has been given on the plan to deal with the massive debt the Glazers have left behind and until that starts to come down, it will continue to be a major source of concern for fans around the world.
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