An open letter has been issued by BBC Panorama researcher Andy Green to Manchester United chief executive David Gill demanding a more revealing and exact explanation of the planned usage of the funds raised by the sale of Cristiano Ronaldo to Real Madrid during the summer of 2009.
The City analyst who helped expose the truth about the Glazers' business empire has made a public call for Manchester United chief executive David Gill to come clean about whether the club's cash will be used to finance the family's ailing businesses.
"Dear David," the letter begins.
"I have no doubt you will have seen the new research about the state of the Glazer family’s US real estate business on this evening’s BBC Panorama, in yesterday’s Guardian or on my blog. I am also sure that the parlous financial state and weak cash generation of the business will have been as much of a surprise to you as it was to me.
In your letter dated 25th February, you referred me to your radio interview with BBC 5Live on 31st January, where you set out your views on Manchester United’s finances. In that interview you said:
'We [the senior executives of Manchester United] don’t wake up worrying about the PIK interest, we don’t worry about the PIK repayment. That is something that the family, the owners, have put in place and they will ensure is repaid or is part of their overall financial planning in due course, but that is nothing to do with the club. You’d have to speak to the owners and get their views as to their plans etc in respect to that. This notion that Manchester United is £716m in debt is just a total misconception frankly.'
The family’s spokesman has subsequently stated that the club will not be sold, meaning the Glazer family need to repay their PIKS. Given the evidence now in the public domain about the profitability and levels of debt in the Glazer family’s other businesses and hence the family’s inability to pay off the PIKS from their own resources, it seems the only possible source of cash to do so is Manchester United itself.
In light of these revelations, can you assure United supporters that none of club’s current or future cash will be used to repay the Glazer family’s PIKS?
I look forward to hearing from you.
Yours,
Andy Green"
Source: Goal UK
City analyst who helped Panorama expose Americans wants reassurances
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