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Jul 31, 2012

United fan group slams Glazers plan

Manchester United's owners suffered a fresh wave of criticism after indicating only half the proceeds of their planned IPO will be used to reduce the club's massive debt.

• United owners confirm share plans

The Glazer family hope to raise around £200 million by selling just over 10% of the club on the New York Stock Exchange but will not use all of the money to reduce United's borrowings, which presently stand at £437 million.

In the New York Stock Exchange prospectus regarding the sale, the Glazers have indicated only half the sum will be used to service the debt on the club, borne from their controversial £800 million takeover in 2005, that was largely funded by loans.

United fans ran a 'green and gold' campaign last season, embracing the club's old colours as Newton Heath, to highlight their displeasure at the Glazers' ownership and the latest plan for withdrawal of funds from Old Trafford has drawn a stinging rebuke.

"Supporters are going to be very angry about this," said Duncan Drasdo, chief executive of the Manchester United Supporters Trust (MUST). "The Glazers have already cost United more than £550 million in debt related fees and now another slap in the face as they help themselves to half of the proposed IPO proceeds.

"Clearly this has nothing to do with benefits for Manchester United and is all about giving the Glazers quick access to desperately needed cash at the expense of our football club."

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