Friday, October 8, 2010

Glazers Bleeding Money on Manchester United

The good news for the Glazers, owners of the Tampa Bay Buccaneers - their British soccer team, Manchester United, is turning record profits (clearing 100 million pounds for the first time).

The bad news - the franchise is still bleeding money because of the massive interest rates the family is paying on debt service for the team. USA Today reports:
Manchester United posted an annual net loss of 83.6 million pounds ($132 million) after costs associated with the huge debts racked up by the club's American owners wiped out record revenues.

In the financial results released Friday for the year ending June 30, United reported record revenues of 286.4 million pounds based on the strength of marketing and broadcasting income. The club's operating profit exceeded 100 million pounds for the first time.

But the impact was largely erased by the payments to manage the club's debts, which are around 750 million pounds, and costs related to a controversial bond issue.
It's been reported that the Glazers cannot refinance to a lower interest rate because they are too leveraged by debt.

No comments:

Post a Comment