Manchester United Pay 16.25% interest on their £700m loan
High Interest Rates
Manchester United are facing a hefty interest rate of 16.25 per cent as of August after breaking financial rules governing their loan.
The 2 per cent rise will strengthen fears that the Glazer family, United’s unpopular owners, will try to pay off the high-interest loans rather than spend money on the team, a move that would infuriate supporters.
With the season over, it is almost certain that United will breach the financial rules set out in the Payment in Kind (PIK) loan taken on by the Glazers to fund their investment in the club. The rate hike means that United will owe an extra £75 million in interest on an already ruinous £138 million loan taken out in 2006. That total will have ballooned to £662.6 million by the maturity date of 2017.
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