"Debt in drag": will Malcolm Glazer score an own-goal with ManUtd?

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It is no secret Malcolm Glazer's acquisition of Manchester United was partly financed by three US hedge funds, Och-Ziff, Citadel Capital Management and Perry Capital. This financing took the form of an issuance of £275m payment in kind (PIK) shares - also known as preference shares and 'debt in drag', securities - that pay dividends by reproducing themselves.

The value of the loan therefore increases rapidly: according to research by Shareholders United (SU), a group opposed to Glazer's

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