Man Utd still £1bn in debt after stadium land purchase

Manchester United’s overall debt remains above £1bn despite extensive cost-cutting under Sir Jim Ratcliffe. The club has also confirmed that £63.5m was spent acquiring land for its proposed new stadium.

Record Revenue Reported

United reported record revenue of £677.6m and an operating profit of £22.6m, despite missing European competition for the first time in a decade. The operating figures represent a major improvement from the £113.2m loss recorded in 2023-24.

Finance Costs Rise

However, the club’s financial position remains under pressure. Net finance costs increased to £69.6m, with United attributing much of the rise to foreign exchange losses. Football finance expert Kieran Maguire said the club’s cumulative finance costs since the Glazer family’s leveraged takeover in 2005 have now exceeded £1bn.

Stadium Land Purchased

United confirmed that £63.5m from an additional $125m loan raised during a summer refinancing was used to purchase land for the planned new stadium. The club has not explained how the remaining funds were used. The proposed stadium, which is expected to be built close to Old Trafford, could cost more than £2bn.

Breakdown Of United’s Debt

The club’s debt has fallen from around £1.3bn at the end of December but remains above £1bn. It includes £577.6m in historic debt, £111.4m outstanding on the revolving credit facility and transfer-related obligations contained within trade and other payables. Manchester United’s published financial reports also show significant borrowing through secured notes and revolving facilities.

Transfer Spending Draws Anger

The financial figures come amid growing frustration among supporters over the club’s recruitment. United spent £148m on Carlos Baleba, Andrey Santos and Youri Tielemans during the summer transfer window, a figure below the £458m spent by Manchester City.

Squad Gaps Remain

Fans have questioned why United did not sign another left-back to provide competition for Luke Shaw, who has already missed matches through injury. There have also been concerns about attacking depth behind Benjamin Sesko following his disrupted pre-season.

Berrada Defends Finances

Chief executive Omar Berrada said the record revenue demonstrated the underlying strength of the business. He said the club would continue taking a disciplined approach to ensure its finances remained sustainable while investing in both the men’s and women’s teams.

Cost-Cutting Measures

Ratcliffe has overseen major cost-cutting measures since taking control of football operations. Two rounds of redundancies resulted in about 450 job losses, while the club’s latest salary costs fell by £11.3m to £302m.

Women’s Team Also Under Pressure

United have also faced criticism over investment in the women’s squad. The team has struggled at the start of the Women’s Super League campaign, adding to the wider debate among supporters about the club’s spending priorities.

Stadium Plans Continue

The planned stadium is expected to be built around 350 yards from Old Trafford. United’s latest financial results show that preparations for the project are already affecting the club’s borrowing, while the wider cost of the development is expected to run into billions of pounds.