Manchester United's owners, the Glazer family, have suffered further embarrassing financial difficulties after four more of its US shopping malls recently fell into default on their mortgages. With the interest rate charged on United's enormous "payment-in-kind debts" rising from 14.25% to 16.25% this month, the news could hardly come at a worse time.
The four malls are in Houston, Texas; Denver, Colorado and two in Ohio. That means nine, or 13%, of the Glazers' malls are now "delinquent" or insolvent, and a further 29 centres, 43%, have so many units empty the rental income does not cover the mortgage payments. First Allied is the only significant business the Florida-based family runs besides Manchester United and the Tampa Bay Buccaneers NFL franchise, and the bank disclosures show it making income above the malls' running costs of only US$9m a year.
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