Glazer debts total over one billion pounds

Manchester United's owners have amassed debts of over £1.1 billion and will have to take millions of pounds out of the club every year to pay off their loans, according to a BBC investigation.

In a programme to be screened today, BBC's Panorama shows that the Glazer family have £700 million of debt tied to Manchester United.

They have also built up £388 million of debt on mortgages for their First Allied shopping mall business in the United States and have £66 million tied to their Tampa Bay Buccaneers NFL franchise.

The Glazers say they are comfortable with the situation and that their assets total two billion pounds.

But investment analyst Andy Green, who investigated the Glazers' finances for Panorama, believes the Glazers have no option but to raid United's coffers to pay off the payment in kind loans - PIKs - which total £220 million.

These PIKS carry a 16.25 per cent interest rate and unless any payments are made these loans will spiral to £600 million by 2017.

Green said the £500 million United bond issue in January now allowed the Glazers to take money out of the club where as previous bank loans had not allowed them to do so.

The investigation will give impetus to the 'green and gold' campaign being run by some United fans against the Glazers' ownership.

There is also a proposed takeover by a group of wealthy United fans known as the Red Knights, though no bid has materialised and the Glazers insist they have no intention of selling the club.

In March, United chief executive David Gill insisted the club's debts were easily covered by the income.