According to an investigation by the BBC’s Panorama programme, the owners of Manchester United FC are £1.1 billion in debt.
Previous estimates of the football club’s debts were put at £400 million less than the new figure, placing the club’s controversial ownership in jeopardy.
Since 2005 stakes in Manchester United FC have been controlled by Malcolm Glazer and his family. But now the massive arrears mean assets owned by the Blazer family empire, First Allied, are at stake as the football club’s debts spiral out of control.
Glazer gradually bought out the premiership club’s shareholders between 2003 and 2005, borrowing £500 million to do so, in a deal which valued Manchester Untied at $1.47 billion and which sparked huge controversy as fans opposed the takeover.
It is thought the recent revelations will further fuel the continuing revolt of many supporters.
According to Panorama, documents show the Glazers have borrowed £388 million against shopping malls and £66 million against their American National Football League team, the Tampa Bay Buccaneers. These are thought to be business empire’s main assets.
This will do little to curb fans’ fears that the football club’s debt will further push up the price of season tickets and prevent future star players from joining the club.
Recently ticket prices have risen by more than a third and star players such as the striker Cristiano Ronaldo have been sold without being replaced by players of a similar quality.
The man behind Panorama’s investigation is Andy Green, a 37-year-old city analyst. Speaking of the extent of Glazer’s debts he told the BBC: “They borrowed more money at inflated valuations right at the top of the cycle.
“These are people who tell us not to worry about Manchester United debt because they are great businessmen. In their core business in the US they got it absolutely wrong.”
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