Man United debt to rocket after £2bn reveal - sources
Manchester United’s debt could rocket to more than £2.6billion if they decide to build a new stadium, sources have told Football Insider.
The Premier League giants have set up an expert task force – which includes Manchester mayor Andy Burnham and ex-defender Gary Neville – as they look to either regenerate Old Trafford or build a new facility altogether.
The Telegraph reported on 29 July the task force has initially concluded the best option would be the creation of a new stadium, boasting a capacity of up to 100,000.
If United decide to push forward with the plans, the proposed development is expected to cost more than £2billion – double the £1billion expenditure of redeveloping Old Trafford – and take six years to complete.
But the club have insisted a final decision will not be made until the end of this year following a full consultation with the supporters.
Man United debt could be set to soar after new stadium update
The development is likely to see United’s debt level rise significantly after it has already soared in recent years.
The latest accounts for the 2022-23 financial year showed the club’s debt had reached £773.3million, excluding the money owed in transfer fees.
But a submission to the US Securities and Exchange Commission (SEC) in March this year showed United had paid off £120million worth of debt on 28 February, meaning their overall debt currently stands at £653.3million.
That financial boost came on the back of Sir Jim Ratcliffe purchasing his 27.7-per-cent stake in the club, with the INEOS chief pumping around £234million into the club.
But United’s debt could rocket to almost £2.7billion if they decide to build a new stadium after sources have told Football Insider the club would take on all of the debt as opposed to INEOS or the Glazers sharing the burden.
Ratcliffe has been exploring various potential avenues to fund the project since his arrival at Old Trafford in February.
The Athletic reported on 26 June the club have held exploratory talks with major financial institutions, including Bank of America, about funding options to raise the necessary capital for the development.
While redeveloping Old Trafford is still believed to be a possibility, former Everton CEO Keith Wyness revealed to Football Insider United chiefs are looking to build on the land next to the existing stadium if a new facility is the favoured option.
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