…as was depressingly predicted in May 2005.
The Guardian reports,
'The Glazer family have instructed bankers to examine plans for a major refinancing of Manchester United's £660m debt, focusing on a securitisation deal that would see the club borrow money against future ticket income.
'While the Glazers are continually looking at ways of restructuring the debt, it had been thought that plans had been shelved, because of the turbulent state of the global debt market. In July, United's chief executive, David Gill, said as much, revealing that securitisation plans had been put on hold. Those plans are now clearly back on the agenda, however, with Royal Bank of Scotland and Deutsche Bank having been instructed to look at various securitisation models.
'It is unclear how much of the debt would be covered by such a deal, but the Glazers have been impressed by the way Arsenal have funded the Emirates Stadium on a similar model. United's debts were refinanced in July 2006, with the £660m split between the club and the family, with annual interest payments of £62m representing a 30% reduction on the previous level. Sources indicate that money from securitisation would be used to service the debt and grow the business.'