Forbes Magazine has estimated the worth of the Manchester United to be about £1.8 billion, the most valuable Football Club in the world for a consecutive 6th year.
So how could a club so wealthy and so famous possibly be facing any financial strain?
Financial analyst Andy Green has been researching the perceived increasingly grim pecuniary situation at Old Trafford for a BBC Panorama expose set to broadcast Tuesday night and estimates the Glazer’s debt now totals upwards of £1.1 billion (700 million of which are tied to Manchester United).
According to Green, “They (the Glazers) 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. At the time when they had to present a huge amount of cash over here in the UK they borrowed a huge amount of extra money in the US and publicly they didn’t buy anything else that year.”
I slept through my finance course at university but a little bit of research into the subject has helped provide a bit of clarity: