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28/10/2011

Revealed: Glazers' secretly charged United 16.1m in "management fees"


[1] Revealed: Glazers' secretly charged United 16.1m in "management fees"

[2] Sir Alex Ferguson - your help needed to celebrate 25 glorious years



[1] Revealed: Glazers' secretly charged United 16.1m in "management fees"

... and they've personally bought more than $10m of the bonds too so now our club is also personally paying them interest on their debt that they have dumped on our club. As one Red on Twitter said "And we thought it was only City who were taking the **** out of us this week".

We wanted all MUST members to see this story (below) as it highlights much of what is wrong about the Glazer takeover of our football club.
 
It's clear that these details were intentionally hidden from supporters and were only revealed when the club adopted new accounting rules in preparation for the possible flotation in Singapore. It does beg the question what else is being hidden from supporters?  Where did the money come from to pay off the PIKs?  Were they just refinanced and the facts hidden in Delaware USA?

 
The accounts also revealed that Kevin Glazer, who is a non-executive member of the club’s board of directors, and his immediate family own $10.6m worth of the club’s bonds. Those bonds pay an interest interest rate of 8.375 per cent – meaning our club is now not only paying interest on their debt but actually now paying interest to Glazer family members on part of their debt that they landed on our club.
 
It's shameful that the FA and government did not have any regulations in place to stop the Glazer takeover or the foresight to block the takeover going through and protect supporters from this type of exploitation.  

We'll be following up with a further message to MPs next week and we hope all UK based United fans will use the opportunity to contact their MP to show how important football ownership and governance is to supporters.

 
It's now calculated that the total cost of the Glazers’ ownership of the club since their takeover has come to £532m. 
 
That's almost seven Ronaldo's.
 
 
http://www.thescore.ie/united-paid-glazer-family-over-16-1m-in-management-fees-265452-Oct2011/
 
The Full Figures can be viewed on this link.
http://www.mufplc.com/pdf/2010-11%20Statutory%20Accounts.pdf
 
The Score 
Friday 28 October 2011
United paid Glazer family over £16.1m in management fees
   
FIGURES RELEASED BY Manchester United for the financial year ended 30 June 2011 have shown that the club has paid its owners, the Glazer family, over £16.1m in three years in “management fees”.
 
The Glazer family were paid fees of £6m for the 2011 financial year, £4.325m in 2010, and a little under £3m in 2009.
 
SLP Partners – a company also controlled by the Glazer family – was also paid £2.9m in consultancy fees in 2010.
 
United were not obliged to disclose the payments under previous accounting rules, and had accordingly opted not to do so.
 
However, the change in Premier League financial rules meant they were subsequently forced to publicly own up to these figures.
 
The new figures mean the total cost of the Glazers’ ownership of the club since their takeover has come to £532m. By comparison, the dividend payments prior to their takeover, between 1991 and 2005, amounted to £62.6million.
 
The accounts also reveal that Kevin Glazer, who is a non-executive member of the club’s board of directors, and his immediate family own $10.6m worth of the club’s bonds – essentially a form of IOU which allows it to borrow cash from investors.
 
Those bonds pay an interest interest rate of 8.375 per cent – meaning Kevin’s family earned £379,180 in interest from the club last year.
 
The family have consistently come under criticism from United supporters after they borrowed hundreds of millions of pounds to finance their purchase of United in 2005 – and then transferred that debt to the club, which had been debt-free before then.
 
Ticket prices were increased by over 42 per cent following their takeover, which led fans to protest against the owners.
 


[2] Sir Alex Ferguson - your help needed to celebrate 25 glorious years

We'll be unveiling a special fans' tribute campaign for Fergie on Friday 4th November ahead of Sunderland(H) on Sat 5th and the official 25th anniversary on 6th November. Every United supporter will be offered the chance to take part free of charge. Look out for details next week.

We'll also be sending Fergie a special gift from MUST members to celebrate 25 glorious years managing Manchester United on November 6th. If you'd like to contribute to that gift (and have your name added to the card) please use the donation link below:



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