HomeNewsBusinessUnited Kingdom

Manchester United “to pay off” £220m loan

Red Football Joint Venture Ltd, the the Glazer family-owned parent company of Manchester United, said in a corporate filing that it will “pre-pay 100 per cent from the outstanding loan on November 22.” The filing, called a voluntary free-payment notice, was signed by Red Football’s co-chairman Joel Glazer and was sent to the holders of the loan.

The Glazers bought United for £790 million in 2005 and in January this year converted a bank loan secured against the team into a £526 million bond. Under the bond’s terms, the Glazers could make a one-time withdrawal of £70 million from the club to pay down the PIK loan, however it is understood the Glazers will not now take any money out of the club to pay down the debt.

In October, the club announced a record loss of £83.6 million, much of which was attributed to the 16.25 per cent interest payments and costs relating to replacing long-term debt with the bond.