Manchester United chief executive David Gill has answered parliamentary criticisms of leveraged buy-outs at football clubs by claiming the Red Devils are "very comfortable" with their financial position.

Concern over organisations borrowing money to mount takeover bids was one of the issues raised by the damning report into football governance delivered by the Culture, Media and Sport select committee. That was exactly how the Glazer family managed to secure control of the Old Trafford outfit in 2005, plunging them into huge debts that presently stand at £490million.

"With respect to Manchester United, we are very comfortable with our financial structure," said Gill.

"We are producing record turnover and record profits and we can meet our obligations. We have been clear all along. There is money in the bank.

"Some people have not believed us but if a player is required to improve the squad and challenge for top honours, the money is there. That is still the case. We are not afraid to spend big money on players of a certain age."

Indeed, United have already splashed out £50million on Ashley Young, David de Gea and Phil Jones, with the possibility of someone else to come if the right deal can be done. In addition, key contracts have been negotiated, with Gill confirming Antonio Valencia will sign a contract extension when United return to Manchester next week.

The Ecuador winger, who hopes to be fit for the Premier League opener at West Brom on August 14, enjoyed an outstanding first season with the Old Trafford outfit after moving from Wigan in 2009.

He then broke his ankle in a Champions League tie with Rangers, ruling him out for six months, but eventually recovered to earn himself a spot in Sir Alex Ferguson's Champions League final starting line-up.

"We're in the process of finalising it. He has been to the Copa America and we've been away but that will be sorted out next week," said Gill.

He also confirmed talks over an extension to Javier Hernandez's contract will begin "in the autumn".

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#European News
#Phil Jones
#Premier League
#Alex
#UEFA Champions League
#Manchester United
#Ashley Young
#Wigan Athletic
#Javier Hernandez
#Antonio Valencia
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