Sunday Telegraph:
Manchester United is in talks with financial institutions to borrow up to £500m against the value of its future ticket sales at the club's giant Old Trafford stadium.
It is believed that Royal Bank of Scotland is drawing up a plan that would see the club securitise future match-day revenues over a 25-year period. The Edinburgh-based bank recently undertook a similar deal for Arsenal FC.
The new funds could be used by Man Utd to replace the £540m of more expensive debt used by the US-based Glazer family to fund its controversial £800m takeover of the club last year. Man Utd is expecting revenues of £3m per match this year following the expansion of Old Trafford's capacity to 76,000. Any securitisation deal would take into account gate receipts as well as associated revenues such as food and drink sales.
A banker with links to the Glazers said: "Securitisation of future ticket sales is being looked at very closely. But Man Utd's management is very comfortable with its existing financial structure. However, anything that reduces the cost of capital is clearly a good thing."
It is understood that the plans being worked on by RBS are among a number of other financial restructuring proposals being considered by the Glazers.
It is believed that JP Morgan, the US investment bank, is also looking at restructuring plans on behalf of the family.
A spokesman for Manchester United said: "It's perfectly natural that one would seek to refinance and restructure after a buyout."
Currently, the Glazers owe £275m in so-called payment-in-kind notes to US-based hedge funds at interest rates of up to 20 per cent. The hedge funds, including Citadel Investment Group in Chicago and New York-based Perry Capital, have the right to seize the Glazer family's stake should Man Utd fail to repay the debt in the next four years. The club also has a £265m loan with
JP Morgan secured against its assets, including players such as Wayne Rooney.
If Man Utd opts for the securitisation option, it will be following in the footsteps of Arsenal, one of the club's arch rivals. The North London club is to raise £260m in the first public sale of asset-backed debt by a European football team. Arsenal has secured a low interest rate on the bond product of just 5.28 per cent, making the debt relatively cheap.
However, it is uncertain whether Man Utd could issue a securitised bond on such good rates while retaining any of its existing debt. Even if the club swapped its existing debt for a £500m loan secured against future ticket sales, analysts estimate it could still be faced with annual repayments of about £35m once associated loan costs are taken into account.
Today's Sunday Mirror:
Manchester United's American owners are looking at refinancing the £540m debt they took out last year to complete their takeover.
And Sunday Mirror Sport can reveal one of the options being discussed is to secure the loan against future ticket sales.
The Glazer family, who completed a £790m buyout of United last May, are looking to restructure under better terms.
Banks and financial institutions on both sides of the Atlantic have been approached to formulate ideas. There is also the possibility that the Glazers will sanction a naming rights sponsorship on Old Trafford.