Malcolm Glazer's formal offer document for Manchester United has revealed that massive interest rates will increase the huge debt at the club.
The opposition to Glazer's takeover from United's fans has focused on the amount of debt that he will run up in buying a controlling stake in the club.
The 76-year-old is due to take the club into private ownership next month but he will run up huge debts in buying The Red Devils.
Tampa Bay Buccaneers owner Glazer has already said he will be borrowing £265 million from bankers JP Morgan, but the interest charges being revealed in his document mean that the cost of that single loan will run up to a huge amount of £570 million.
The full details of the amount of debt involved will send a shiver through the United fans, as estimates say the debt at Old Trafford will run up to £650 million, six times that which almost brought down Leeds United.
Glazer's £275 million loan has been divided into four parts, £55 million, two lots of £62.5 million and £85 million, with repayments taking between seven and 10 years at a rate between 2.75% and 6.5% above base rate.
Although the base rate is low - around two percent - the premiums are still huge and impossible to pay back without a massive increase in present profits .
Although shareholders' reaction to the document will not change the outcome, with Glazer having already taken a 72.6 percent stake, it will only serve to increase the fear amongst United's fans.
The repayment figures that have been worked out for the £275 million loan from JP Morgan secured against Manchester United are:
£55 million - payable over seven years at 2.75% above LIBOR (London InterBank Offered Rate). Repayment cost - £90 million.
£62.5 million - 50% payable over seven years, six months, 50% payable over eight years at 3.25% above LIBOR. Repayment cost - £110 million.
£62.5 million - 50% payable over eight years, six months, 50% payable over nine years at 3.75% above LIBOR. Repayment cost - £128 million.
£85 million - payable by April 2015 at 6.5% above LIBOR. Repayment cost - £242 million.
The opposition to Glazer's takeover from United's fans has focused on the amount of debt that he will run up in buying a controlling stake in the club.
The 76-year-old is due to take the club into private ownership next month but he will run up huge debts in buying The Red Devils.
Tampa Bay Buccaneers owner Glazer has already said he will be borrowing £265 million from bankers JP Morgan, but the interest charges being revealed in his document mean that the cost of that single loan will run up to a huge amount of £570 million.
The full details of the amount of debt involved will send a shiver through the United fans, as estimates say the debt at Old Trafford will run up to £650 million, six times that which almost brought down Leeds United.
Glazer's £275 million loan has been divided into four parts, £55 million, two lots of £62.5 million and £85 million, with repayments taking between seven and 10 years at a rate between 2.75% and 6.5% above base rate.
Although the base rate is low - around two percent - the premiums are still huge and impossible to pay back without a massive increase in present profits .
Although shareholders' reaction to the document will not change the outcome, with Glazer having already taken a 72.6 percent stake, it will only serve to increase the fear amongst United's fans.
The repayment figures that have been worked out for the £275 million loan from JP Morgan secured against Manchester United are:
£55 million - payable over seven years at 2.75% above LIBOR (London InterBank Offered Rate). Repayment cost - £90 million.
£62.5 million - 50% payable over seven years, six months, 50% payable over eight years at 3.25% above LIBOR. Repayment cost - £110 million.
£62.5 million - 50% payable over eight years, six months, 50% payable over nine years at 3.75% above LIBOR. Repayment cost - £128 million.
£85 million - payable by April 2015 at 6.5% above LIBOR. Repayment cost - £242 million.
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