Manchester United owners to pay off huge debts

Manchester United received a double financial boost as their owners agreed to pay off huge debts from outside club funds while first-quarter results on Tuesday showed strong matchday and commercial revenues.

United's owners, the Glazer family, sprung a huge surprise by agreeing to pay off a £220 million ($350.6 million) payment-in-kind (PIK) loan from funds outside the club.     

Joel Glazer, co-chairman, has signed a "voluntary free-payment notice" confirming that 100% of the outstanding loan would be repaid on Nov 22, a source with knowledge of the situation said.     

United, bought by the Glazers five years ago, converted their debt into a £500 million bond in January and under its terms they could take £70 million from the club to repay part of their main PIK debt. 

Neither the club or a spokesman for the Glazers would comment on the matter on Tuesday. 

Last month United announced a loss of 83.6 million pounds for the year ending June 30, much of it attributable to interest payments but their figures for the three months to Sept. 30 released on Tuesday were more upbeat.

Year on year revenue grew 9.7% from 57.7 million to 63.3 million, matchday revenues rose 0.5% from 19.6m to 19.7m, media revenues rose 3.7% to 19.4m while commercial revenues were up 24.7% from 19.4 million to 24.2 million.

Overall there was a £4.9 million loss due to interest payments and other operating expenses.