Man Utd debts ‘reach £1billion’ under Glazers after takeover talks stall and share price plummets
MANCHESTER UNITED have seen their debts hit £1billion for the first time as uncertainty around a takeover continues.
The Red Devils’ share price has also plummeted as a result of the Glazers struggling to agree a sale of the club.
The crash saw £600m taken off the team’s value, leaving the figure at £3.3bn.
It came after reports emerged last week that the current owners are considering taking United off the market.
The Glazers have supposedly been demanding a £6bn fee but could even hold out for £10bn should a bidding war start.
However, potential buyers Sheikh Jassim and Sir Jim Ratcliffe are not reportedly not close to American family’s valuation.
The news sent shockwaves with Man Utd’s share price falling by 18.2 per cent on Tuesday to £15.40.
It was the biggest daily drop since they were first registered on the stock exchange in 2012.
And things continue to get worse for Man Utd as debt hit a record £1.005bn.
The Mail claim their third-quarter results show outstanding payments have increased by £31m.
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This is reportedly down to gross debt, bank borrowings and yet to be paid transfer fees.
United still owe other clubs £279.8m and this fee could rise as it does not include their summer outlay worth around £180m on deals for Mason Mount, Andre Onana, Rasmus Hojlund, Altay Bayinidir, Sofyan Amrabat, Jonny Evans and Sergio Reguilon.
The Glazers announced they would entertain offers for the club last November and after nearly a year, a U-turn in the move to sell is being considered.
A source close to the deal told The Times that both Ratcliffe and Sheikh Jassim do not value United at more than £5bn.
They added: “Nothing has really progressed. We are where we were four months ago.
“There is no momentum in the conversations and unless you have momentum, deals die.”
They also speculate that the six members of the Glazer ownership group disagree on how much to demand and even whether to sell or not.
Meanwhile, there is more positive reading with revenue expected to hit an all-time high of £640m from £630m.
They have also extended their kit deal with Adidas and the agreement is worth £900m over 10 years.
Additionally, bank borrowings fell from £206.2m to £203.7m and a change in exchange rate from dollars to pounds means United owe £14.2m less in principal debt.
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