Manchester United have confirmed how they plan to fund their new stadium construction, but it is problematic.
Sir Jim Ratcliffe and Manchester United are pushing ahead with the plan to build a new 100,000-seater stadium to replace Old Trafford.
It has been over a year since United released concept images of a new stadium, and stadium construction was meant to begin in 2025.
United have already faced land purchase problems that have delayed the timeline, and the expected £2bn cost of the stadium is hanging above the project like a dark cloud.
Manchester United Announce Plans to Build New World Class Stadium
Photo by Ash Donelon/Manchester United via Getty Images
Manchester United’s ALARMING transfer debt
Who's to blame here? 🤔
Chart depicting Manchester United's transfer debt
Manchester United transfer debt table Credit: Adam Williams/United in Focus/GRV Media
Man United confirm plan to fund £2bn stadium project
Earlier this month, finance expert Kieran Maguire suggested that United’s stadium could be funded by a private equity firm.
In United’s latest Fan Forum held in March, it has now been confirmed that is the plan moving forward.
“Our proposed new stadium will be financed privately, and we continue to have positive conversations with potential investors and all stakeholders,” an official answer on the forum read.
More United News
However, as pointed out by Manchester Evening News, this route of funding has the potential to skyrocket United’s debt to astronomical levels.
United are already in £1.3bn of debt including owed transfer payments, so privately funding the stadium could increase the debt figure to a staggering £3.3bn.
Should United scale back their ambitions for their new stadium?
100k seats, huge canopy and three towers would come at eye-watering cost for club already £1bn in debt
Manchester United Announce Plans to Build New World Class Stadium
Photo by Ash Donelon/Manchester United via Getty Images
Man United’s interest payments could skyrocket
As it stands, United are already paying £40m in interest costs on their current debt, which is a huge dent in the club’s net revenue figures.
Financing a stadium was never going to be cheap, and some reports have even claimed that the £2bn stadium budget is ambitious given the features that are included.
United have already discussed scrapping the canopy roof idea presented in the initial design, as that feature was expected to cost around £300 million on its own.
READ MORE: Andy Mitten shares what his sources are now saying about Man Utd’s new stadium
With United confirming that the stadium will be privately funded, the debt repayment and interest costs could reach incredible levels.
United’s matchday revenue will boom at a new stadium, and Ineos will need it to balance the books and repay the inevitable stadium debt.
Join Our Newsletter
Receive a digest of our best United content each week direct to your mailbox