From the Financial Times: “That’s the corporate and financing structure of Manchester United FC. The diagram comes from the prospectus to the £500m senior secured notes offering launched on Monday morning.”
Presented without commentary here, as I have absolutely no idea what it all means. The FT, of course, explains (with further diagrams). As does David Conn, who tells us “How the Glazer family have milked debt-ridden United for millions”:
Lurking in the full, heart-sinking detail of the Glazer family’s proposal to borrow £500m, a partial replacement for the £700m debts their takeover has loaded on to Manchester United, is a page documenting the millions United have paid out to the family members themselves. None of the Glazers appear to have taken a salary out of the club since that May 2005 takeover, which United fans bitterly opposed and which has since cost the club more than £325m in interest.
In those three and half years, ticket prices have almost doubled at Old Trafford, where previously they were restrained to cater for the regulars at the Lou Macari Fish Bar, as well as the prawn sandwich consumers.
The MU Finance plc prospectus, launched in the City yesterday, sets out the fortune the Glazer family have reaped from the club they borrowed £540m to buy. From 1 July 2006, in five separate payments, a round total of £10m was paid in “management and administration fees” to companies affiliated to the Glazers. Under the new bond issue, the family is entitled to be paid up to £6m by United in management and administration fees.
On 30 June last year, United entered into a consultancy agreement with SLP Partners, “a company related to certain of our ultimate shareholders”, to pay up to £2.9m. On top of that, on 19 December 2008, each of Malcolm Glazer’s five sons and one daughter, all of whom are directors of Red Football Limited, each personally borrowed about £1.66m from the club, a total of £10m.
Added together, the management fees, consultancy agreement maximum and the £10m the six family members actually borrowed from United make a total of £22.9m paid to the family and their affiliated companies in three and a half years.
Astounding. With that, all we can suggest to United fans is: