In finance, there is good debt and bad debt. For football clubs, borrowing money pays for new stadiums, insulates against lurches in cash flow and allows investment in future success on the pitch. But Manchester United’s debt is not that kind.
In total, United’s net debt stands at well over £1bn. That includes the legacy costs of the Glazers’ leveraged buyout, their overdraft facility and, perhaps most significantly in the short term, money owed in transfer instalments.
Even the biggest apologists for the Glazer family and, latterly, Ineos would struggle to argue that United have got even reasonable value for money from their debt.
Interest payments – primarily from the debt associated with the Glazers’ 2005 takeover – are likely to cost the club £30-40m this season, while the lack of free cash means United had to rely on equity injections from Sir Jim Ratcliffe and increasing their credit limit to facilitate their circa £155m net spend in the transfer market this season.
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Manchester United co-owner Sir Jim Ratcliffe arrives prior to the Premier League match between Manchester United and Manchester City at Old Trafford on January 17, 2026 in Manchester, United Kingdom
Photo by Ash Donelon/Manchester United via Getty Images
And while there are reasons to be cheerful under interim boss Michael Carrick, United have very, very little to show for their investment in players in the transfer and wage markets in the post-Ferguson era.
For every Bruno Fernandes, there has been an Alexis Sanchez, a Jadon Sancho and an Antony.
Since 2013, United’s accounts reveal a spend of £3.75bn on wages and £1.6bn in transfer amortisation, while player sale profits – calculated as sale price minus amortised book value – are a measly £249m.
Sir Jim Ratcliffe, co-owner of Manchester United (C) with Omar Berrada, Chief Executive Officer (R) during the Premier League match between Tottenham Hotspur and Manchester United at Tottenham Hotspur Stadium on November 08, 2025 in London, England.
Photo by Marc Atkins/Getty Images
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United’s head-spinning revenues have given them the grace to avoid the worst consequences of their profligacy, but they can’t fight gravity forever.
In June last year, United in Focus relayed that the club was due to repay £175m of transfer debt by March 2026. But as we approach that juncture, the picture is worse.
Man United owe £540m in transfer instalments
In December, United released their quarterly financial report, which looked at the three months up until 30 September 2025. It made for bleak reading.
After signing Benjamin Sesko, Bryan Mbuemo, Matheus Cunha, Senne Lammens and Diego Leon in the summer, United’s total trade receivables (the vast majority of which is transfer debt) stands at an astonishing £540m.
£324m of that is due before September this year.
Over the same period, United will collect just £77m in transfer instalments from other clubs.
The difference between those two figures – United’s net transfer debt – has widened significantly since Ratcliffe’s part-takeover. Last season, only Chelsea (roughly £500m) owed more. We don’t have access to Chelsea’s 2024-25 accounts yet, but United have now almost certainly surpassed them on a net basis.
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Chart depicting Manchester United's transfer debt
Manchester United transfer debt table Credit: Adam Williams/United in Focus/GRV Media
On the whole, United’s recruitment looks promising, particularly in the cases of Mbuemo and Cunha, who have so far shone during Carrick’s short time in the dugout.
But with the club groaning under the weight of a megaton of transfer debt, those players simply must deliver Champions League qualification. Otherwise, United will need to seriously recalibrate.
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Getting back into Europe’s elite and accessing its monumental prize money and matchday income is, however, probably not enough by itself.
United would hope to get £80-100m in prize money from the Champions League, depending on performance, plus perhaps £30m in matchday income.
But like all Premier League clubs, the Red Devils have a highly-incentivised contract structure. And when more prize money comes in, more wages flow out.
Administrative expenses when playing in Europe are significantly higher too. The extra costs wouldn’t be offset by the £10m bonus from kit maker Adidas for finishing in the top five, for example.
Adidas Logo is seen on a stand at Old Trafford, home stadium of Manchester United as fans shield their eyes from the sun during the Premier League match between Manchester United and Luton Town at Old Trafford on November 11, 2023 in Manchester, United Kingdom.
Photo by Robbie Jay Barratt – AMA/Getty Images
As most United fans know, player sales are inevitable. But as well as extracting maximum value for the likes of Marcus Rashford, painful decisions lie ahead over the futures of some of Old Trafford’s more favoured sons. A bumper offer for 31-year-old Bruno Fernandes, for one, would be difficult to reject.
As well as sales, increasing revenue will be key.
Here, United are actually in a relatively sound position. If they play their hand right, that is.
The training kit, Carrington naming rights and shirt sleeve sponsorships are all available and, together, would likely fetch £60-70m in revenue. But as Chelsea have proven over the last two seasons, getting the right deal at the right price in a buyer’s market is no mean feat.
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Cost-cutting, Ratcliffe’s calling card throughout his 55-year business career, will likely continue too.
There are, however, only so many limbs one can amputate before the patient cannot survive. Headcount has already shrunk by hundreds – and United are a PLC with huge operational upkeep.
Further reducing an already skeleton staff would not be a smart play. But United’s recent history proves that the smart ideas don’t often make it through the boardroom.
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