Deutsche Bank and the Royal Bank of Scotland have trumped rival JP Morgan in arranging a securitisation to refinance Manchester United's acquisition debt.

The financing, expected to take place in the first quarter of next year, is a blow to JP Morgan, which had a double role as adviser and leading debt underwriter in the £790m (€1.2bn) takeover of the football club in May year by US billionaire Malcolm Glazer. The deal is a coup for the banks, as neither worked on the original acquisition financing when he bought the club.
The securitisation, expected to be worth between £375m and £500m, is likely to mirror closely the financing arranged by Barclays Capital and RBS for Arsenal Football Club. Unlike previous securitisations, which relied heavily on the value of a stadium or commercial rights, Arsenal's transaction blended innovative structures to ensure the long-term survival of the London club, including tests to secure adequate working capital. While these techniques are expected to play a part in Man U's refinancing, the structure is likely to differ, reflecting the club's leverage and profile, bankers said. Its capital structure comprises £660m of debt, including a £375m senior debt facility or loan, and £135m worth of risky payment-in-kind notes.