Glazers: £660 million Refinancing Aborted …
Telegraph: Sir Alex Ferguson has been told it will be business as usual at Manchester United, despite a decision by the club’s owners, the Glazer family, to abort plans for a proposed £660 million refinancing deal due to increased uncertainty in global credit markets.
The Glazers had been keen to exploit favourable conditions in the debt market to restructure the club’s debt, but a downturn in the global financial outlook has led to a rethink at Old Trafford. United chief executive David Gill insists that the club remain on a healthy financial footing and dismissed speculation that the Glazers are preparing to sell the club.
“This thing comes out from various soccer ‘gurus’, who shall remain nameless, that they [the Glazers] are looking to do this or that,” said Gill. “They are not at all. They are very wealthy individuals. They see the asset and they’re very happy with it and the growth they see in it. We have a stable structure off the field and a stable structure on the field. We are still in debt, but banks don’t lend money if they’re not comfortable that there’s a good covenant and that the interest payments can be met.
“Our turnover this year will be over £200 million. Our profits, as we said when we announced our results for 2006, will be substantially up and that was before we knew all about the new TV deals, which come in next year.” As for the future of Ferguson, who is preparing for his 21st season at the club ahead of today’s meeting with Shenzhen FC, United say they will not plan for his successor until the day that he announces his retirement.
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Guardian: Plans by the Glazers to restructure the club’s £660m debt have been put on hold because of a downturn in the global debt markets, but Gill insists that the American owners are fully committed to United and have no plans to sell, despite recent speculation to the contrary.
He said: “This thing comes out from various soccer ‘gurus’, who shall remain nameless, that they [the Glazers] are looking to do this or that. They are not at all. They are very wealthy individuals. They see the asset and they’re very happy with it and the growth they see in it.
“We have a stable structure off the field and a stable structure on the field. We are still in debt but banks don’t lend money if they’re not comfortable that there’s a good covenant on and that the interest payments can be met. Our turnover this year will be over £200m. Our profits will be substantially up and that was before we knew all about the new TV deals, which come in next year.”
