Glazers to pay off £220m
The Glazer family, who own Manchester United, are set to pay off £220million of their high-interest PIK loans.
The Glazers' holding company Red Football Joint Venture will pay off the entire payment-in-kind debt next week, according to a voluntary free-payment notice seen by Bloomberg.
The American family will use their own money and not the club's to settle the debt, which carried annual interest of 16.25%.
Joel Glazer, the co-chairman of Red Football, has signed the document which has been sent to the holders of the loan, who are mainly hedge funds. The document says Red Football will "pre-pay 100% of the outstanding loan on November 22".
The move should reassure United fans who have been concerned about the debt burden on the club - now the debt will be solely the £526million bond agreed earlier this year.
Last month United chief executive David Gill insisted that the club could cope with the debt.
Gill told Press Association Sport: "I can't speak for any other club but the United fans should not be concerned.
"We have a long-term financing structure in place, excellent revenues that are growing, we are controlling our costs - total wages are 46% of turnover - and we can afford the interest on our long-term finance.
"In our opinion if something changed in the ownership this club will survive and continue - it is covering the financing cost more than adequately.
"We still have cash to invest in players and to give good contracts to players and we are comfortable with the business model."