Manchester United announced the plans to construct a brand new stadium earlier this month, with an ambitious five-year target to complete construction.
Fans were left divided when Ineos announced the plans to replace the iconic Old Trafford with a brand new, 100,000-seater stadium which promised to transform the skyline of Manchester.
The stadium plans are breathtaking, impressive and ultimately a drastic change from the current history-laden Theatre of Dreams. The new ground would cost in the region of £2 billion, a substantial outlay for Manchester United.
Sir Jim Ratcliffe has not held back in revealing the financial problems the club are currently facing, admitting cost-cutting is a necessary evil to avoid United going bust at the end of 2025.
“Manchester United would have run out of cash by the end of this year – by the end of 2025 – after having me put £300m in and if we buy no new players in the summer.”
So, in order to build the stadium, funding will be required from external sources, with no free spending owners like Sheikh Jassim may have been. But there are positives, as United have a number of potential options to fund the build.
It is thought that United could target new stadium sponsorship, including possible naming rights to the tune of £300m for a 10-year contract.
Photo by Christopher Furlong/Getty Images
Photo by Christopher Furlong/Getty Images
Manchester United may have to enter land swap to begin construction on new stadium
When Architect Norman Foster unveiled the plans, United were thought to be targeting a move in date of 2030, which is a very ambitious goal for those involved.
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Now, according to the Daily Mail there is an £11m hurdle block construction from the beginning, and it comes in the form of a land dispute.
The land in which Ineos want the new stadium does not entirely belong to United right now, and so they would first need to acquire land owned by Freightliner, who own the rail terminal behind the Stretford End, which cost £11m to build.
It is added that talks between the necessary parties have so far been positive, although Freightliner would be unable to relocate to their new site at Parkside East near St Helens until 2029.
The report continues that there have been considerations for United to swap another area, toward the back of the car park at Old Trafford, for the slice they need to build the stadium.
This land swap would allow work to begin on building the new stadium while not halting Freightliner operations while they find their permanent solution.
This makes the 2030 target ambitious and optimistic, but it would be hoped that the five-year project will be underway by the time 2026 rolls around.
Finance expert shares verdict on Manchester United land dispute
In order to gain insight into what this all means for the club, United have spoken with finance expert Adam Williams, who has given his verdict on the land dispute.
“The danger with capital expenditure projects of this magnitude and complexity is that, even after you’ve announced them, there are umpteen things that can go wrong.
“These investments almost always come in over time and over budget – that is the brutal reality, and Manchester United will be well aware of that.
“The body that owns the terminal obviously have a lot of leverage in these negotiations because they know the outsized value of the land to United. It’s not as if they really have anywhere else to go.
“I think local government could end up helping them out with a compulsory purchase order if it comes to it, so I don’t think this is going to actually prevent the build, but it’s a headache nonetheless.
“The land swap would make sense on paper, though it’s another layer of logistics that could see the start time for the build pushed even back further.”