Man Utd debt spirals

While the Glazer's have moved to reject the claims that Man Utd's debt is spiralling out of control; Man Utd's Independent Supporters Trust has claimed that the club is reaching a record level of debt.

The Independent United Supporters Trust report will show that about £100m is going annually into debt servicing the Glazers total debt of £660m. The increased revenue from AIG sponsorship and TV rights is going into underwriting this debt.

At 6.69 percent variable interest rates and with a shaky global market ahead, there is a good chance that the interest rates could go up increasing the debt servicing costs. The added costs will most likely be passed onto the fans whose ticket prices have already shot up by 50 per cent since the Glazers takeover. At this point Man Utd is still making a profit on the backs of the ticketholders. But many fans see this as a tipping point.

Some angry ticketholders are contemplating legal action against the club over the new Automatic Cup Scheme (which requires all season-ticket holders to pay for all cup games whether they want to go or not) and the unfair way it was introduced.