Seems that Goldman Sachs Chief Economist, and lifelong Manchester United fan and former board member, Jim O’Neill agrees that the recent bond sale is a bad sign re: the financial structure of the club.

“There’s too much leverage going on with Manchester United,” O’Neill, a lifelong supporter of the 18-time English soccer champions, said in a Jan. 23 interview. “It’s not a good thing. I’m not a buyer of the bond.”

….

“I value my long-term support for Manchester United better than anything else,”

Goldman’s O’Neill, Lifelong Manchester United Fan, Spurns Bonds, Jan 25, 2010 Bloomberg

I noted that yields on ManUtd’s recent new issue debt compared to AIG bonds of similar maturities. Another analyst is quoted as saying that he even considers the new bonds to be underpriced given the inherent risk the club now contains.

Things are going to be very interesting this summer for the legacy of the LBO in the Premier League.