Man Utd still £1bn in debt with £63.5m spent on new stadium
Manchester United’s total debt remains above £1 billion despite extensive cost-cutting measures introduced under Sir Jim Ratcliffe, with the club also confirming that £63.5 million has been spent acquiring land for its proposed new stadium.
The financial update comes amid fan protests and a disappointing start to the season, with United sitting 12th in the Premier League and having already been eliminated from the EFL Cup.
Despite those challenges, the club reported record revenues of £677.6 million and an operating profit of £22.6 million, even though it missed out on European football for the first time in a decade. The figures mark a significant turnaround from the £113.2 million loss recorded in the 2023-24 financial year.
United also revealed that it had saved £8.5 million from a projected £16.5 million compensation package for former manager Ruben Amorim, after he accepted a position at AC Milan. However, other financial expenses have risen.
Net finance costs for the year climbed by 228.3% to £69.6 million, with the club attributing much of the increase to foreign exchange losses. Football finance expert Kieran Maguire estimates that such costs have now exceeded £1 billion since the Glazer family’s leveraged takeover of the club in 2005.
The club further disclosed that £63.5 million of an additional £125 million (£94.14 million) secured through a summer refinancing arrangement had been used to purchase land for its proposed new stadium. United has not clarified how the remaining funds were spent.
The new stadium, which is expected to cost more than £2 billion, will form part of a wider regeneration project around Old Trafford, approximately 350 yards from the existing ground.
Although the club’s overall debt has fallen from £1.3 billion at the end of December, it remains above £1 billion. This includes £577.6 million in historical debt, £111.4 million outstanding on its revolving credit facility, and unpaid transfer fees.
Club sources say approximately 75% of the £473 million recorded under “trade and other payables” represents outstanding transfer payments.
The financial position comes as supporters express frustration over what they consider inadequate investment in Michael Carrick’s first-team squad during the summer transfer window.
United spent £148 million on three signings — Carlos Baleba, Andrey Santos and Youri Tielemans — an amount significantly below Manchester City’s £458 million outlay and even less than the spending of newly promoted Ipswich.
Fans have also criticised the club for failing to recruit another left-back to provide competition for Luke Shaw, who has already missed three matches through injury. They have similarly raised concerns about the lack of additional striking options to support Benjamin Sesko, whose shin problem disrupted his pre-season preparations and has reportedly resurfaced.
United maintains that funds were allocated towards the new stadium project. However, the additional borrowing remains reflected in the club’s financial accounts.
Chief executive Omar Berrada welcomed the record revenue figures, saying they demonstrated the underlying strength of the business and the impact of measures implemented over the past two years.
He said the results showed the club was moving in the right direction but stressed that management would maintain a disciplined approach to ensure long-term financial sustainability.
Berrada added that the club had strengthened both its men’s and women’s teams during the summer transfer window, while the men’s side had secured a return to Champions League football at Old Trafford.
United has also faced criticism over what supporters view as insufficient investment in its Women’s Super League squad, which has collected just one point from its opening three matches and sits second from bottom.
Ratcliffe had previously argued that significant action was necessary to reduce the club’s losses. Two rounds of redundancies resulted in 450 employees losing their jobs.
The club also confirmed that its latest salary costs had decreased by £11.3 million to £302 million.
United attributed the reduction mainly to changes in the composition of the men’s first-team squad, alongside savings generated by staff reduction programmes introduced over the previous two financial years.
Source: BBC
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