I'm not going to worry about this too much. First off, these statements are supposedly for last year (ending June, 2007) and people do restructuring financially - I seem to remember something about the Glazers doing this last year, even though they didn't actually refinance but I thought they "restructured" a bit. Even with these supposed losses, we still spent something over 65,000,000 pounds on new signings last year.
The only other reference I could find to the financial situation outside the Guardian paints a somewhat different picture. It says there was a £58m net loss last year, but that is improved over the £135m from the previous year.
Quote:
PROFITS AND INTEREST COSTS RISE FOR GLAZERS – 4/5/08
The holding company that owns Manchester United saw both its interest costs and pre-tax profits rise last year, according to results the owners said represented a more stable financial footing. Red Football Joint Venture's interest on bank loans and overdrafts it refinanced in August 2006 was £42m for the 12 months to 30 June last year, compared with £27.2m for the previous 14 months. Earnings before interest, tax, depreciation and amortisation rose from £36.3m to £75.4m. Operating profit moved into the black reaching £7.1m following a loss of £37.2m. The overall loss for 2006-7 was £57.8m, smaller than the previous period's £135m. Net debt for the company owned by the Glazer Family rose from £603m to £666m. But that includes one-off costs for redeeming high-interest loans. However, had earnings been the same as 2006, the company would have fallen £6m short of covering its interest payment. A spokesman for the Glazers rejected suggestions this showed a vulnerability for a company reliant on the team's on-field success, which although it is currently being maintained, cannot be guaranteed.
Confidence was partly based on the sponsorship deal with AIG worth £18m a year over five years and another with Nike that will bring in £303m in the next 13 years. Gate receipts from the expanded stadium rose 28 per cent to £96.2m. Receipts from television and other media rose from £46m to £61.5m.
FootballEconomy.com
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The thing that gives me the most peace of mind is that United is currently valued at something like £1.2 billion. In the worst case scenario, it would be fairly easy to find someone willing to invest for a stake in the club should the Glazers need bailing out.
Nevertheless, after a highly financed financial venture like the takeover of United by the Glazers, this kind of debt situation is to be expected. Not everyone can write cheques like Abramovich can. The real question comes when you look at how quickly they can climb out of the losses incurred during the capital investment and it looks like they are managing to do just that, and in fine form too. Under normal circumstances, anyone who manages a £77m improvement in the books from one year to the next would be hailed as a hero.