Glazers dismiss BBC report about financial woes

In strongly denying a BBC report that the owners of the Tampa Bay Buccaneers are financially strapped, the Glazer family also rejected any suggestion they have borrowed money from their NFL franchise to cope with soccer club Manchester United's mounting debt.

Speaking for ownership, Bucs communications director Jonathan Grella said each of the businesses owned by the Glazers stands independently, with no shifting of resources between the entities.

"Buccaneer fans should know that the Glazer family is as financially well-positioned as ever before,'' Grella said in a written statement issued Monday. "Companies they own generate revenues in excess of $800 million each year. Each entity is independent and self-sufficient.

"This franchise remains committed to bringing the resources to build its next championship team.''

The Glazers have been criticized by some vocal Manchester United fans who are concerned about the estimated $1 billion debt run up by the Premier League soccer power. A report by BBC Panorama released Monday alleges the overall debt of the Glazers approaches $1.5 billion, or almost $600 million more than previously reported.

"BBC Panorama has found evidence that the Glazer family's debt levels may threaten their hold on the (soccer) club,'' the report stated.

According to the report, "mortgage documents seen by the BBC show that the Glazers have borrowed £388m ($570m) against shopping malls and £66m ($95m) against their American National Football League team, the Tampa Bay Buccaneers."

First Allied Corp. is the Glazer-owned business that operates shopping malls.

"Sophisticated real estate experts know that the family's refinancing of their commercial real estate before the global meltdown has proven to be the wise move," Grella said in the statement.

"While First Allied represents only a small portion of their asset portfolio, it continues to generate significant profits, enjoys over 90 percent occupancy, and has long term non-recourse financing."

Non-recourse loans, according to website investopedia.com, are secured by collateral, usually property. If the borrower defaults, the lender can look only to the sale of the property. The borrower does not have personal liability for the loan.

The BBC report, scheduled for broadcast Tuesday on the newsmagazine "Panorama," said the Glazers hold more than $2.9 billion in assets.

Whether all the Glazers' debt is a problem is hard to say, said Andrew Kline, founder and managing director of the Park Lane investment banking firm, which helps sell professional sports teams.

"The number (debt level) is only important if they can't service the debt," Kline said. "As far as I know, they can service the debt."

If the Glazers' debt is secured by Manchester United, the family's lenders shouldn't be too worried, Kline said. The team is one of the most prized assets in all of sports and, if the Glazers needed to sell it, Kline predicted 10 wealthy investors could write the family a check.

Not having advised the Glazers, Manchester United or the Buccaneers, Kline said he couldn't tell if the family's debt was hurting their ability to purchase top players. American professional sports leagues regulate how much debt an owner can put on a team, but the English Premier League has no restrictions on debt levels, Kline said.

The BBC story does not specifically claim any money the Glazers have taken out of the Bucs has been used to service Manchester United's debt.

Last fall, NFL Commissioner Roger Goodell told the Tampa Tribune any suggestion the Glazers are siphoning funds from the Buccaneers to their other business interests is inaccurate.

"The charge has no merit,'' Goodell said. "The Glazer family has consistently demonstrated a commitment to winning in the NFL and that has not changed.''

The Glazers have never denied Manchester United is operating with considerable debt, but Tampa Bay's owners point out the soccer club remains highly profitable and they have never missed a debt payment.

According to Forbes magazine, the Bucs were worth $1.085 billion before the start of the 2009 season and the club's ratio of debt to value, 13 percent, was one of the lowest in the league.

Forbes also listed Tampa Bay's operating income at $68.9 million, third-best in the NFL behind the Redskins and Patriots.

"I talk to the Glazers on a regular basis,'' Goodell said in February. "They are terrific for the NFL and we have not seen that there is any stress that would affect the way they operate any of their professional teams, much less the Tampa Bay Buccaneers.''

However, the extent of the reported debt could fuel a further revolt by the group of United fans who oppose the Glazers' ownership, the report said.

The Glazers took over United in 2005 in a leveraged buyout worth $1.4 billion.

"I don't think anybody can be satisfied with how Manchester United are being run," Dave Whelan, chairman of Premier League club Wigan, told "Panorama."

"They have got somewhere in the order of a three-quarters of a billion pounds worth of debt. That has got to be eliminated and eliminated quickly."

The research for the BBC program was carried out by Andy Green, a London financial analyst who is part of a campaign by disgruntled United fans to oust the Glazers.

Thousands of United fans attended matches at Old Trafford last season adorned in green and gold colors instead of the club's usual red. The homage to United's original 19th century colors is a protest against the Glazers.

In March, United chief executive David Gill said the club's debts were easily covered by the income.

"In an ideal world, people would like to not have a mortgage on their house, but that doesn't mean they don't enjoy the benefits of living in that house and can't afford that house," he said.

The Glazers have said they will not sell the club.

Forbes magazine recently estimated Manchester United is worth $1.8 billion, making it the most valuable soccer team in its rankings for the sixth straight year.