Soccer:Manchester United's parent company's overall debt has swelled to €826.6million, latest accounts reveal. The company Red Football Joint Venture Ltd, which is owned by the Glazer family, filed accounts for the year ending June 30th, 2009, showing their overall debt has gone past the €800million mark for the first time, increasing by over €20million from €806.7million.
The biggest rise has come in the payment in kind (PIK) loans, which typically have a higher interest rate, which show a €31million increase to €233million. Bank loans, meanwhile, have dropped by €10.3million to €587.6million.
The overall debt figure, not contained in the prospectus for a €577million bond issue released last week, illustrate why the Glazers are so keen to raise cash through bonds to reduce the interest on the debt.
Red Football Joint Venture paid out €79million in interest on their debts in 2009 but unlike the previous year, returned an overall profit of €7.3milllion in 2009. In 2008, they returned a €54.2million loss.
The profit can almost entirely be explained by the sale of Cristiano Ronaldo to Real Madrid in the summer for €92.3million.
Red Football Joint Venture's accounts record an €93million profit on "disposal of players" compared to a €24.2million profit in 2008.
A spokesman for the Glazer family insisted that the debt did not have a bearing on the operation of the club.
He said: "The club has a €57.7million surplus to work with once the interest payments have been made."
Manchester United's accounts also show their chief executive David Gill was paid €2million last year.
-PA