Interest rates reduce debt repayments.

Good news lads

http://www.bbc.co.uk/news/business-22651038

Manchester United has struck a new loan deal to cut the amount of interest it pays on its huge debts.

The Premier League club, which is owned by the Glazer family, has refinanced £178m of outstanding debt, a move that should save it £10m a year.

The Glazers bought Manchester United in 2005, taking out hundreds of millions of pounds' worth of loans to fund the takeover.

That has prompted concerns over the financial stability of the club.

It still has about £307m in debts, but has continued to enjoy on-field success under the Glazers, with five Premier League titles and one Champions League victory.

The club has also spent significant amounts of money on big name signings, including Robin van Persie from Arsenal last year.

Its finances continue to be bolstered by TV revenues. In the 2012-13 season, it is reported to have made more than £60m - more than any other club.

The refinancing deal has been struck with Bank of America and means that interest rates on the loans of between 8.75% and 8.38% will be cut to a variable rate.