Manchester united’s Debt Crisis Deepens Despite INEOS investment & Cost-Cutting Measures
MANCHESTER, UK – Despite a notable influx of funding from Sir Jim Ratcliffe and INEOS, Manchester United‘s financial situation remains precarious, with gross debt nearing record highs and interest payments exceeding £850 million as the Glazer family’s 2005 takeover. A new analysis reveals that the club’s debt may actually increase in the coming year, even with recent efforts to streamline costs.
Recent financial reports show United spent £238 million on transfers in 2024. However, this spending, coupled with stagnating revenues, has exacerbated existing financial pressures. The club’s interest charge for the 2024-25 season totaled £35.7 million, stemming from $650 million in senior debt and revolving credit facilities (RCFs).Of this, approximately £24 million was attributed to long-term debt interest, with a further £12 million generated by short-term borrowings.
While consolidating multiple RCFs into a single fund has yielded a slight reduction in interest rates – from SONIA plus 2.5% to a margin between 1.25% and 1.75% – increased drawdowns on these facilities are projected to increase the overall interest charge this season. £265 million in current lending is estimated to incur £14-15 million in interest payments over the next year.
The cumulative impact of these interest payments is staggering. Since the Glazer’s acquisition in 2005, United has paid out £853 million to service loans. This burden is significantly heavier now than it was two decades ago. The club, once debt-free and consistently profitable, is now struggling to meet these obligations due to large player spending and a lack of revenue growth.
However, not all financial outflow is negative. United invested £44.7 million in infrastructure last season,primarily focused on the recently opened Carrington training facility,which cost a total of £55.7 million. This investment, alongside reported wage bill cuts, signals a potential shift in strategy.
despite these positive steps,the analysis concludes that Manchester United remains in a vulnerable financial position. “Fixing the assorted wrongs of nearly 20 years will take longer than two,” the report states, emphasizing that tangible improvements in debt reduction and overall financial health are yet to materialize.
(Top photo: Getty Images)
