in , , , , , , ,

Man United owners Glazers face criticism for choosing personal benefit over club dues

The Glazers are not interested inselling Manchester United
The problems at United are multi-fold

Glazers face criticism for choosing personal benefit overpaying club dues

According to the Daily Mail, Manchester United and Glazers are facing criticism after delaying the payment of £10million tax bill. This is in spite of forking out £11million in dividends, including £8.5million to the Glazer family.

As per the club’s quarterly results, the club chose to defer their £10million VAT bill to the UK Government for a year.

This is the second £11million windfall that the shareholders have been paid in the past 12 months. The same report also revealed that United’s net debt rose by £127.4million to a mammoth £429.1million.

Glazers to pocket 8.5m from manchester United dividends
Glazers to be paid £8.5million in diividends

The club’s activities have come for much praise during the coronavirus crisis. United not only refused to furlough staff but also spent more than £1million on relief efforts to the pandemic in their local area.

The crisis has cost the club £28million so far, with the final figure expected to be much higher.

Undoing the goodwill?

This latest move threatens to undo some of that goodwill. It can also further fuel the supporters’ discontent of the Glazers’ stewardship of the club. This is best understood considering the taxpayer will foot the bill for any interest on money the Government must borrow.

The same was confirmed by football finance lecturer, Kieran Maguire.

“I don’t think it reflects particularly well on the club because ultimately it means that the Government have to borrow more money on behalf of the taxpayer, who have to pay interest on that to allow the Glazers and other shareholders to be paid £11m.”

He went on to add that this threatens to undo a lot of the excellent work United has done.

The club, for their part, know how it looks but insist that the Government encouraged all VAT-paying companies in the UK to use the deferral scheme. This will see the club pay the sum a year later. United also believe other clubs are taking advantage of it. 

Old Trafford Manchester United
The club’s net debt rose to £429.1million

They also believe it is different from the furlough scheme, which passed on the cost to the taxpayer instead of delaying a Government payment, albeit with possible interest.

The club also added that the dividends were confirmed in February. They would have faced legal issues if it went back on them. Meanwhile, future payments are believed to be under review.

More Manchester United News

It is disappointing to see that the owners have chosen to line their own pockets than ease the burden on the club’s payments. Unfortunately, it is a common theme of life under the Glazers.

Written by Pranav Nair

An Engineering postgraduate with a keen interest in statistics, pop culture and football.

Paul Pogba of Manchester United

Man United star’s agent sets wheels in motion for a summer exit

Manchester United are keepign tabs on Rabbi Matondo

“Never say never” – Young Manchester United target responds to questions on his future