With mortgage rates running around 4 1/2 % per annum, for those folks who still have jobs and feel relatively secure in their jobs, this may be a good chance to refinance their mortgage.  With prime rate running at 3 1.2% consumers and businesses who have a relationship with a bank that is actually making loans should be refinancing their debt.  If only the Glazer family had it that easy.

You see, when the Glazers bought Manchester United, they borrowed most of the purchase price.  In 2006, the family reorganized the club's debt, borrowing at least 500 million pounds from accommodating banks.  However, that was not quite enough, as they also took out a 138 million pound loan from a number of hedge funds and other like investors.  That loan was a payment in kind loan, with no payments due until the whole loan comes due in 2017.  The PIK loan originally bore interest at 14 1/4% and carried numerous financial and other covenants meant to rein in the Glazers ability to manage the club for the benefit of just themselves.  The club is in breach of those covenants, so the rate bumps to 16 1/4%.

With the rate that high, the Glazers will be paying an additional 75 million pounds in interest.  The repayment amount now rises to 662 million pounds in 2017 and that is a tough number to make for any club, even the top grossing club in the world.  What that might mean for ManU's operations is simple: the Red Devils are not likely to be active in the top end of the transfer market where crosstown rival Manchester City is throwing money around like a, well, soccer mad Arab sheik.  The club may also begin looking at the roster to see who might be shopped for cash.  There has been no public indication from either the club or Sir Alex that sales are coming, but sitting out the transfer market looks to be almost a sure thing.