Manchester United have announced a reduction in the club's debt and an increase in turnover, after revealing their quarterly figures on Tuesday.
But despite the apparent improvement in health of United's finances and the announcement that the Glazer family plan to pay off £220 million worth of payment in kind (PIK) notes, the club's gross debt still stands at £509.4 million up to September 30.
United enjoyed a rise in total turnover from £57.7 million to £63.3 million compared to the same three months last year, mainly due to a rise in commercial revenue to £24.2 million, an increase of more than 25%.
Last month United reported losses of £83.6 million, with more than £40 million attributable to interest payments on a £500 million bond issue, and accrued interest on the PIK loans.
The controversial payment in kind notes (PIKs) have been the subject of much debate due to the huge amount of interest they are attracting. The current level is 16.25% and while this debt is levelled against the family themselves it was anticipated they would use money from the club to reduce it.
However in a letter issued by co-chairman Joel Glazer, he confirmed to the lenders of the PIK notes that the debt will be paid in full by November 22.
This latest development does appear to confirm repeated statements from Sir Alex Ferguson and chief executive David Gill that the club has a large transfer kitty at their disposal, with transfer funds not being kept back to pay off a portion of the PIK debt.