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Malcolm Glazer has appointed a 'chief of staff' to liaise with the banks that loaned the American billionaire the money to buy Manchester United. Ed Woodward, a former investment banker who played a key role in structuring the takeover when he was at JPMorgan, the bank that advised on the deal, has been hired to be the Glazer family's 'eyes and ears in the City'. His role will involve negotiating with JPMorgan, the chief lender on the deal. £275 million on the debt was raised through the issue of 'PIK loans' to three New York hedge funds. The interest on these loans is punishing, ranging up to 20 per cent, but the payment is deferred. A more pressing problem is servicing the bank debt on the United balance sheet through the club's cashflow. The interest alone on these loans was expected to be more than £20 million in the first year. The Glazers' business plan assumed that United would qualify for the lucrative knockout stages of the Champions League every season, reaching the quarter-finals at least every third year, but they may struggle to do this with the ease of past seasons. It is evident that the Glazers are concerned enough about their investment that they need their own man alongside the United board to keep them fully informed. Supporters are uneasy, not least after the 3-1 defeat by local rivals Manchester City. A spokesman for Manchester United Supporters Trust commented. 'Many supporters feel that a cash injection of £100 million might be required if we are serious about challenging for the top honours. Until there is a change in ownership, that kind of investment will remain impossible due to the huge debt.'
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