Manchester United have reached an unwanted milestone with major implications on their plans to build a new stadium to replace Old Trafford.
As reported by United In Focus, the English giants have surpassed £1bn in interest paid, a figure which would only continue to rise should further debt fund their new stadium proposals.
Manchester United surpass £1bn in total interest paid
According to United in Focus, Manchester United have now passed £1bn in interest payments and face concerns over the funding of their new stadium plans due to ever-growing debt.
Large amounts of the club's debt date back to the Glazer family's leveraged buyout of the club in 2004, borrowing against the club to fund the £750m takeover, leaving the Red Devils still paying £30m of interest per season as a result.
Speaking to Financial Times, Football Regulator Chief Executive Richard Monk said: “We want clubs and owners to have ambitions and dreams. We’re not risk averse. That’s what makes English football so special and that’s what fans want. But at the same time, we don’t want the future of clubs to be gambled away. And I think because of that, we would look very, very closely at highly leveraged buyouts, for example.”
Since 2023, leveraged buyouts for Premier League clubs have been capped at 65% of the total value of a takeover, meaning that the Glazers' buyout method from 2004 would have been blocked if it was occurring today.
Speaking to United in Focus, Kieran Maguire – University of Liverpool football finance lecturer said: “The figures I have show that total interest payments since the Glazers acquired the club has just ticked over £1bn, based on the first-quarter accounts for 2025-26.”
“A leveraged buyout means you’re simply using the debt as a means of facilitating the transaction itself. There is no investment in infrastructure or players.”
Increasing debt and interest to harm stadium funding?
As reported by United in Focus, almost £350m of Manchester United's growing debt will fall due in 2027.
Rather than repaying, it is believed that Sir Jim Ratcliffe and the Glazers will opt to refinance this debt, bringing about much more interest, with rates higher now than when loans were agreed initially.
Kieran Maguire continued on the club's financial position ahead of their stadium proposals, adding: “For the club itself, however, there is a lot of risk. They are going to take on a lot more debt when they come to build the stadium and that becomes a trickier calculation when you’re already paying huge interest.”
Experts have suggested that, after the restructuring of debt falling due in 2027, annual repayments including interest could almost double, particularly should extra funding be taken on to begin works on the proposed new stadium.
With Ratcliffe and the Glazers reportedly unable or unwilling to provide major down payments, required funding in their stadium plans would likely have to come from new investment into the club.
FGG says: Worrying signs in Manchester United plans
Manchester United's ambitious stadium plans have always come with their concerns, but the club's spiralling debt and interests could make a move unfeasible.
With the restructuring of debt repayments imminent and likely to badly hit the club's profit and cashflow at a much-increased rate, the Red Devils may have to seek significant new investment if they are to go ahead with a move as planned.