Manchester United’s debt could cross more than one billion pounds if redevelopment of Old Trafford and Carrington occurs.
English football giants Manchester United could reach another milestone under the ownership of the Glazers with an estimated debt of over a billion pounds if the club redevelops its Old Trafford Stadium and Carrington facilities. Old Trafford has been allowed to fall into a state of disrepair in recent years, with no new major work undertaken since the Glazer takeover – the last project was already underway by then. It was completed in 2006 as both north quadrants were filled in. The training facilities at Carrington have already fallen behind that of rivals such as Manchester City and Liverpool, with the latter opening a brand new training complex in 2020.
Despite the enormous costs involved, failing to carry out necessary renovations and upgrades is not an option in the increasingly competitive landscape of English and European football. In April, United confirmed they are working with a management consultant company and the same architectural firm that built the Tottenham Hotspur Stadium to start creating a ‘masterplan’ for the redevelopment of Old Trafford.
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The biggest challenge concerning the project is the Sir Bobby Charlton Stand on the stadium’s south side. It is currently the smallest of the four stands but backs onto a railway line, making any building and expansion extremely complicated from an engineering point of view. According to reports, £300 million would be spent just for that stand to be updated.
There will be further costs to redevelop the rest of the stadium. At the same time, chief executive Richard Arnold estimated £250 million for a new training ground in his recent impromptu discussion with angry fans. Net debt posted in United’s latest financial result up to March 2022 is already £495 million.
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Arnold, who admitted that United has ‘f***ing burnt through cash’ in the transfer market over the last ten years without seeing the gains, confirmed any money to be spent on Old Trafford or at Carrington would have to be borrowed or come from outside investment. For the future and investing in a new stadium and that sort of stuff – the latest and greatest £250 million training ground, we’ve got to get investors in, and I need that to do what I want for the club. I’ve got to have more cash than we have now. No club in the world has the money to do a new stadium without getting it from someone – you either borrow it or someone invests it.”
Borrowing to fund work on Old Trafford and Carrington would likely exceed £500 million, pushing overall debt beyond £1 billion for the first time. That is sure to further stoke fan angst towards the Glazer family, whose controversial leveraged buyout takeover was what plunged the debt-free club hundreds of millions into the red in the first place.