So late yesterday it emerged that the Glazers are to pay off a £220m PIK (Payment-In-Kind) loan by November 22nd.
The loan started at £138m but with interest it rose to £220m. Red Football Joint Venture Ltd have decided to pay the loan back in full but it begs the question where have they got the money for this? The Glazers are ‘entitled’ to £95m of the club’s money so assuming they took that (meaning the Ronaldo money has gone to paying off debt) where has the rest of it come from? Reading some of Andy Green or Andersred thoughts on the situation and he raises some interesting points.
1. Was the money obtained via the Glazers selling a stake of the club? This is a long shot but a possible source of income.
2. Have they refinanced and effectively acquired a new debt to pay off an old one?
Today sees the club announce it’s first quarter results so there are bound to be various questions and answers stemming from them but the predominant thing on everyone’s mind will be how have the Glazers managed to pay off this loan?
I might be wrong…but if the loan was £138m and they are entitled to £95m from the club (tansfer kitty) = £233m, therefore £220m can be paid back….and SAF transfer kitty swells to a mssive £13m…
The loan was 138 it rose to 220 with interest. 220 – 95 = 125. The question is where did the other 125 come from
may be they loaned it from some other sources and pay back from the money they would get from “the secret rooney” deal… say another 80 million plus if they sell evra, carrick, berbatov, anderson, and kusjak .. u get your rest of the 45 million… then fergie will probably bring henderson as a swap with welbeck plus gibson plus wes brown and around 5 million and also bring kaka on loan… we should be okay
Robbo the loan total is 220m It was origionally 138 but interest pushed it up to 220m.
They were allowed to take 95m from the bond issue out of the club…. for the past few years each family member has taken at least 10m out for administration costs…. soo….. 40m per year
x 3 is 120… 120+95… this doesnt include the fact that they can also take money from dividens from the bond issues…. They can actually take upto 600m, according to the Bond issue, over its lifetime… The Telegraph has a report out today which explains how they can take money from the bond issue…. MUFC has paid thse PIK loans. It came from them as payments to the Glazers…..
They haven’t taken any money out of the club. That is confirmed, so the article starts off on the wrong basis. On the investor conference call both Gill and Woodward made clear that no money came from the club even though the Red Football Joint Venture was entitled to take a special dividend.
The Glazers already owned 40% of the PIKs according to Bloomberg. So if they refinanced at 8% line Fox News reported, then it’s a very good thing, isn’t it?
Good to see you actually read the piece mate. I never said they took money from the club I pondered if they did
Does it matter where they got the money from? the sooner these parasites are out of our club the better.