Man Utd to pay Glazers another £11million despite debt rise to £429.1m

Manchester United will pay £11million in dividends to its owners, the Glazer family, next month, despite the latest financial results revealing that the club's net debt has jumped to £429.1million.

United's latest quarterly accounts showed a debt increase of £127.4million, a 42.2 per cent jump.

Executive vice-chairman Ed Woodward also disclosed that the club is withdrawing its previous revenue predictions for the year – £560-£580m – due to the ongoing coronavirus pandemic.

The club also confirmed on Thursday that they expect to have to pay a £20million rebate to the Premier League broadcast rights holders due to the fixture schedule being halted during the shutdown.

Woodward declared that the current global crisis is proving "one of the most extraordinary and testing periods in the 142-year history," of the 20-time English champions.

However, last year's club accounts revealed that the Glazers stood to undertake two dividends in 2020 of almost £11million each.

The first was taken out in January.

Now, as revealed by ESPN, the second will be taken out on June 3.

That payment is due to go ahead as planned, having been confirmed to United shareholders on February 25 – prior to the suspension of the Premier League and most major sporting leagues across the globe.

On that date, Manchester United PLC were trading at $18.04 per share. Having fallen to as low as $12.55 per share on March 18 – five days after their last match, against LASK in the Europa League – they opened May 22 at $15.86 per share.

It is not in United's long-term interest to not pay the Glazers' dividend however. That February 25 confirmation duly acts as a legally binding agreement and could potentially undermine investor trust if the parent company reneged.

Source: Read Full Article