According to a report in The Times, four of the US shopping malls have fallen behind on payments and are now classed as ‘delinquent’ bringing the total number of the Glazers’ insolvent shopping malls to nine.
With Manchester United’s debts totalling an approximate £716 million and interest rates on the club’s largest debts about to rise this month, there will be a lot of financial pressure both on the Glazers and on the football club.
Whether a mortgage is for business purposes, such as the malls owned by the Glazers, or for personal purposes, such as when an individual buys a home, being able to meet those mortgage repayments in the long term is of paramount importance otherwise the property can be repossessed.
When seeking mortgage advice, a reputable mortgage advisor will want to ensure that the mortgagor (i.e. the borrower) has considered the long term.
When the Glazers took on Manchester United, they were aware of how much debt a football club can incur.
Andy Green, an investment analyst and a Manchester United supporter, has written much about the finances of the club. He was quoted as saying:
“[These revelations] show that the Glazer family’s only significant other business is making almost no money, and certainly not generating the cash to reduce United’s massive debts.”