Man United could be forced to put new stadium plans ‘on hold’ after £1bn+ reveal
Manchester United could be forced to put their new stadium plans “on hold” after releasing their latest accounts.
Man United have announced plans to build a 100,000-seater stadium as part of the government’s regeneration of the Old Trafford area.
Sir Jim Ratcliffe has insisted he wants the new stadium, which the club believe will cost around £2billion, to be the “world’s greatest” and potentially be completed within five years.
However, BBC Sport reported on Friday (19 September) Ruben Amorim’s side now owe almost £1.1bn after releasing their accounts for 2024-25 last week.
Former Man City financial adviser Stefan Borson exclusively told Football Insider Man United’s debt is starting to get “too high” as they consider plans to finance the new stadium development.
Man United smash club record after paperwork filed
Man United smashed their club-record revenue again in 2024-25 after their turnover increased from £661.8million to £666.5m.
That ensures Man United continue to bring in the second-highest revenue in the Premier League behind Man City, who are yet to post their latest figures but generated £715m of turnover in 2023-24.
Speaking exclusively to Football Insider about Man United’s debt, Borson said: “If you’re investing in the squad in the way that United have to do to play catch up, it’s inevitable that you’re going to strain certain parts of what you owe and then laid on top of that you’ve got the situation with higher interest rates and overall disappointing financial performance notwithstanding the commercial attractiveness of United.
“None of it is problematic, it’s sort of existentially problematic, but the ratios that clubs like to operate on are really not very attractive for United at the moment. Football net debt over EBITDA, their earnings, is now at a level that’s really very high.
“I mean, it’s five times effectively, and given that the plan for United is one to continue to invest in the first team because I don’t think anybody would suggest that their investment phase of getting the team back to the level that it wants to be, nobody would suggest that that’s finished, so there’s more spending required there.
“Then, of course, there’s this £2bn-plus stadium that they want to build. Now, both of those are going to create more pressure on the balance sheet, and all of it is pointing to them needing more equity to be put in by either the existing shareholders, and everybody will mock the possibility of the Glazers putting money in, or new shareholders.
“So, Ratcliffe and another or Ratcliffe taking more of the Glazers’s position out, or Ratcliffe putting more money in to dilute the Glazers. Now, the issue there is that the share price was $15 (£11.11) last week and the share price that Sir Jim Ratcliffe invested in not too long ago was more than double that at $33 (£24.33), so it’s complicated.
“You could say that the stadium situation is going to be very challenging to do, possibly even on hold given where the financials are right at this point, unless they can get effectively a subsidy from local or central government, or equity from a third party.
“I think the debt situation now, they’re getting to the point where the starting point of the debt is starting to get too high to then stick on top very considerable stadium debt.”
Borson previously told Football Insider Man United could be facing a £4bn bill to complete the new stadium development due to a rise in inflation.
How much is Man United’s wage bill?
In terms of other key financials within Man United’s latest accounts, there was a significant uplift in commercial income, which improved from £302.9m in 2023-24 to £333.3m last season.
The 20-time English champions’ broadcast revenue fell from £221.8m to £172.9m due to their lack of Champions League football, while matchday income increased from £137.1m to £160.3m.
Man United’s losses fell dramatically across the campaign from £113.2m in 2023-24 to £33m last season, with their wage bill also dropping from £364.7m to £313.2m.
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