Interest payments jump at United
Mon 16th Aug 2010 | Money & Finance
The interest rate on a loan taken out by the Glazer family to buy Manchester United is expected to rise by 2% to 16.25% this week after they failed to keep the club's debts below a stipulated level. This will add £5m of interest payments to the £138m payment-in-kind (pik) loan that the Americans used to help fund the purchase of the club.
Pik loans are paid off at the end of their life with the accrued interest added on. The Glazers have to repay their loan in 2017. The additional charge means the pik will have risen from £202m last year to nearly £269m last year. United fans will be concerned that ultimately cash will be taken out of the club to repay it.
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