Manchester United's financial situation?

I am an American and try to follow the English Premier league as closely as I possibly can. Television stations and sports media coverage of soccer in the USA is nearly non existent, making it difficult for me to follow. So my facts/information/knowledge might be lacking.

I've been hearing Manchester United is in a lot of financial trouble/debt, but yet they apparently offered some insanely large amount of money for Frank Ribery? How is this possible if the team is so far in debt?

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  • 1 decade ago
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    United have a debt of over £1 Billion ($1.8 Billion) needing to be repaid over the next 9 years. United are banking on the future success of the club to be high enough to regain enough revenue to pay off the debt and also pay for more players, which is surprising why they feel the need to buy any.

    United's main concern is the high amount of interest, not helped in these times of recession. They will look to selling United merchandise in the Far East as a main source of income while the recession bites here in Britain.

    They will have to cope with the ludicrously high level of INTEREST added to the debt. United NEED to be successful over the next 9 years in order to have enough revenue to repay the debt. Any slump could have serious repercussions which most United fans choose to ignore.

    The truth is United's debt is RISING, not too much to be alarmed about, but spending over the odds for players they don't really need won't help.

  • 1 decade ago

    United's debt are in the region of £700m. This is as a result of the Glazer family being able to finance the loan by borrowing against the value of the club and not having to put any of their own money into it. If things go **** up they can walk away and United could theoretically be asset stripped to repay the loan.

    A similar method was used by Gillette and Hicks to buy Liverpool although (not surprisingly) for a vastly smaller sum.

  • You've solved the mystery yourself. United in debt, while the press links Ribery for £63m. Totally rubbish story.

    It won't happen unless United sell some of their players.

  • Anonymous
    1 decade ago

    The Ribery story was untrue.

    The club owe £650 million, amazing since they didnt owe anything before the glazers bought them

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  • Dan
    Lv 7
    1 decade ago

    They are in huge debts it is possible as with a lot of transfers now they are paid in instalments also people are keen to lend big teams money

  • Anonymous
    1 decade ago

    they owe a lot of money but there not in trouble because they make so much they would have no problem payin big money for ribery

  • 1 decade ago

    I heard they are rich.!

    Source(s): Yes, I think Manchester United will win the Premier League and Champions League once again. ^^^^^Unless Vela plays.
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