Man Utd announced ambitious plans to build a new 100,000-seater stadium at an event in London last year.
Designs of a new Manchester Unted stadium
What Manchester United's new stadium could look like(Image: Manchester United)
View Image
Manchester United released a minor update on plans to build a new 100,000-seater stadium when the club's latest financial numbers were released. On Wednesday, United announced their third-quarter financial results, revealing an operating profit of £37.7million.
That represented an improvement from the £3.2m operating loss in the same period last year, which United put down to cost-cutting and improved performance in the Premier League.
The financial results were seen as overwhelmingly positive for United, who have the headroom to invest heavily in the transfer window to strengthen the squad for Michael Carrick's first full season in charge.
Click here to find out the latest Manchester United news in our daily newsletter
There was also a minor update on plans to construct a new stadium, with United saying: "Work continues behind the scenes on our ambition to build a new 100,000 seater stadium."
Before United can push ahead with stadium plans, they must reach a deal to purchase the rail yard surrounding Old Trafford. The land is owned by Freightliner and talks over an agreement have stalled.
Despite the positive third-quarter numbers, United are still burdened by just under £1.3billion of debt, made up of borrowings on a revolving credit facility, Glazer takeover legacy debt, and outstanding transfer fees.
In August, football finance blogger Swiss Ramble placed Everton and Tottenham above United in his debt league, but those clubs have borrowed to build new stadiums. United have calculated that a new Old Trafford would cost around £2bn.
Sir Jim Ratcliffe initially floated the idea of taxpayers partly funding the £2bn project, but that idea was rejected by Andy Burnham, and United confirmed two months ago that it would be financed privately.
A United spokesperson said: "Our proposed new stadium will be financed privately, and we continue to have positive conversations with potential investors and all stakeholders."
United will sell Old Trafford's naming rights when they complete a new 100,000-seater stadium. It has been estimated that United could bank around £150m with a 10-year agreement to sell the naming rights to a new ground.
Omar Berrada admitted that United could sell naming rights when he spoke at the unveiling of plans for a new stadium. "At this stage, all the options are open," said Berrada. "We're not closing any doors, so we obviously want the stadium to give us additional revenues for us to be able to invest into the team, and I think that's going to help.
"One of the biggest upsides is to give the best experience to our fans, to be able to accommodate more fans into the stadium. But it is true that the additional revenues will help finance the talent that the fans will see on the pitch."