Manchester United ‘s co-chairman Joel Glazer has spoken out about the club’s financial situation ahead of this summer’s transfer window.
The Red Devils are being linked with plenty of big-name transfers this summer, including a deal for Borussia Dortmund winger Jadon Sancho worth around £80m.
The Glazer family are understood to have paid out over £1 billion to finance the debt incurred by their leveraged buy-out back in 2005.
Meanwhile, more than £100m has also been withdrawn from the club in dividend payments.
The running of the club behind the scenes, which is done day-to-day by co-chairmen Joel and Avram Glazer, has come in for heavy criticism.
But speaking at a fan forum event, Joel has defended the way in which the club operates financially.
Addressing United fans, Glazer appeared to state that the club would continue to spend, despite the club’s huge debt.
“We think that Manchester United is a very well run club, and we think clubs throughout football could take a look at us, and there’s a lot of good to be seen when it comes to some of these things that are controversial,” Glazer was quoted as saying by the minutes from the meeting.
Has the Glazers time run out at Man Utd? Have your say in the comments below
“We’re able to spend with the top clubs throughout Europe, whether it’s wages or transfer fees, we’ve been able to keep our ticket prices low, we’ve not increased them in over 10 years.
“We’re able to pay a dividend but it’s a modest proportion of our five to six hundred million pounds of revenue; it’s less than three percent of that.
“We have debt, but a lot of other clubs do have debt as well. We pay a very low interest rate, mostly fixed interest debt. So, if interest rates went up it would not affect us, but we had made progress in reducing our debt over the last several years. The net debt was meaningfully reduced a couple years ago.”
Going into more detail about how the club continues to spend despite the debt, Glazer insisted that United would not be bullied into overpaying for players but maintained that money would be spent this summer.
“It [debt and dividend payments] has never stood in the way of us pursuing players or transfers on the pitch,” he added.
“We may have walked away from transfers at times because the other side wanted an outlandish number. And while it’s easy to pay it that one time, it does have consequences.
“You do it once and the next person expects it, and then the next person expects it. And that’s not good, ultimately, for the club. So, we think that we’re able to accomplish all these things and still have.
“We’re going to keep investing on the pitch, which we did last year, and we plan on doing it meaningfully this year. So, we feel that we’re in a good spot.”