For weeks now the press in England, stoked by the Manchester United Supporters’ Trust, have been bashing the Old Trafford owners for their financial plans which have left the Red Devils in approximately Â£750 million worth of debt.
To compensate for this major short-fall, the Glazers embarked on a funds drive by issuing bonds for Manchester United. The bond issue was hugely controversial as, by law, Manchester United were forced to detail 15 risk factors attached to the bonds – including the departure of Sir Alex Ferguson as the manager, a possible slump in form on the pitch, as well as the potential for the sale of assets including the Carrington training ground and even the Theatre of Dreams itself – which spiked fans’ concerns further under the belief that the Americans would happily sell of every aspect of the club in order to make a quick buck.
Over the weekend the results of the bond issue were released, and against the backdrop of negativity which preceded the investment exercise, it was revealed that the club actually managed to raise over Â£500 million from the bonds as investors all over the planet bought into Manchester United. In fact, reports claim the the bonds were doubly over-subscribed.
Bloomberg, the leading television business news channel, has since gone about dissecting the impact of the bond issue, with their expert pundit claiming that United’s bond issue “may be their best result of the season.”
So have the Glazers managed to pull the rabbit out that hat?
The Bloomberg report can be seen here.