Manchester United To Go Back To the Market With Junk Bonds?

True BlueCorrespondent ISeptember 3, 2010

BIRMINGHAM, ENGLAND - FEBRUARY 10:  Manchester United fans make their feelings toward club owner Malcolm Glazer known during the Barclays Premier League match between Aston Villa and Manchester United at Villa Park on February 10, 2010 in Birmingham, England.  (Photo by Laurence Griffiths/Getty Images)
Laurence Griffiths/Getty Images

After the 'success' of Manchester United's sale of bonds in the last 12 months the club are looking at returning to the market with a second offer.

There is a gaping hole in the clubs projected income over the next three seasons that could be as high as £80 million. Part of that is the fall off in season tickets (about 11,000 fewer sold this year than two seasons ago) and the static cost of those that they have sold.

The Glazers were hoping for a five percent year on year increase this year, next year and the year after, but they have had to freeze all prices in a vain attempt to sell the hoped for target of 55,000.

As the owners need to draw the £90 million allowed as part of the last bond issue there is a need to find cash as quickly as possible and it may be that more MUFC Junk Bonds may be sold to achieve that.

For those fans who don't think the Glazers would take the £90m they are allowed to, then it must be noted that of all their business interests Manchester United is the only one to make a profit. 

It remains to be seen if the previous Bond sale has left the owners with enough wiggle room to refinance further or if an asset sale will be the only option available to them.

Perhaps a sale and lease-back of Carrington?