Manchester United sees debt costs rise

Annual results for the year to the end of June showed it had reduced debt by nearly £50m amid surging commercial revenues and a refinancing deal.

But the Premier League champions are still sitting on a £389.2m mountain of borrowings and saw annual financing costs rise to £70.8m over the period, mainly due to the cost of the refinancing package.

However the fall in total debt from a level of £436.9m will see the club pay £10m a year less in interest in future, it said.

The figures also revealed Manchester United spent £36.4m on net player capital expenditure, down from £49.5m the previous year.

The results come after a £150m float on the New York stock exchange in August last year, which saw half the proceeds pocketed by US owners the Glazer family and some of the rest being used to pay down the debt pile.

The share sale of a 10 per cent stake of the club last year followed the highly-leveraged takeover of the club by the Glazers in 2005.

That resulted in angry protests by fans’ groups and subsequent unsuccessful attempts to wrest control of it from the family.