25 May 2013

New refinancing deal negotiated by Manchester United

6:10 am on 25 May 2013

Manchester United has negotiated a new loan deal with Bank of America to cut the amount of interest it pays on its debts.

The Premier League club, which is owned by the Glazer family, has refinanced £178 million of outstanding debt, a move that should save it £10 million per year.

The Glazers bought Manchester United in 2005 and the club still has about £307 million in debts.

The BBC reports the refinancing deal means that interest rates on the loans of between 8.75% and 8.38% will be cut to a variable rate.

Last year, the club paid about £50 million in interest alone.