Finance guru reveals real reason for £40m ‘debt hike’ at Man United
Debt at Man United may have risen by £40million over the last year to fund operational costs or because of interest on previous loans.
That is the view of finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about the Red Devils’ latest quarterly report.
United recorded a £5.4m shortfall for the three months ending 31 December 2021, with revenues totalling £184.5m.
The accounts, which were released last Thursday (1 March), also revealed that net debt rose by £40m to £495m over the accounting period.
Plumley explained why the “debt hike” at Old Trafford is no cause for alarm.
“Debt is perceived to be a bad thing and that isn’t always the case,” the Sheffield Hallam University expert told Football Insider‘s Adam Williams.
“The Glazers have increased the debt at the club since their takeover.
“They did that by borrowing money to buy the club and charging the club the interest on the borrowing.
“We’re fixated on each and every debt hike at United for that reason, but it’s not necessarily a bad thing.
“The debt could have been increased through owner investment in the form of loans or it could be to fund operational costs.
“It is not unusual in and of itself for clubs to have increasing debt, especially not in the current climate.”
United were beaten 4-1 by Man City on Sunday (6 March).
That result leaves Ralf Rangnick’s side outside the top four in the Premier League.
In other news, pundit suggests Cristiano Ronaldo could quit Man United after “hidden message” emerges.