Manchester United to Save £10 Million Annually After Refinancing Debt

Premier League champions Manchester United have agreed a new loan deal that will save the club around £10 million ($15m) per year in interest costs.

The club have refinanced £178 million of outstanding debt with the Bank of America at lower interest rates than their current agreement. The club have said the new loan has an estimated starting interest rate of 2.78%, reducing interest payments from around £31 million ($46.9m) to £21 million ($31.7m) annually. 

The club still have a total debt of £370 million ($559.2m) after the Glazer family’s purchase of the club in 2005 was funded by loans worth hundreds of millions of pounds. Despite concerns for the club’s long-term financial health from some fans, the team have been successful on the pitch in the Glazer era, winning five Premier League titles and one Champions League trophy. 

The club also set a new record for Premier League television earnings in the 2012/13 season, bringing in £60.1 million ($92m). That figure is set to rise even further next season as a result of the improved television deal agreed by the Premier League.

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