Manchester United have revealed their intention to privately finance the new Old Trafford stadium they plan to build, a decision that could push the club’s total debt to an eye-watering $4.5 billion (£3.4 billion). However, club leaders still believe investors will be lining up.
The project, largely inspired by co-owner Jim Ratcliffe, is geared towards a 100, 000-seat stadium that would be the biggest in the UK. Frequently called the “Wembley of the North, “ it goes hand in hand with a large-scale regeneration of the neighborhood around the stadium.
Chief operating officer Collette Roche stated in an interview that a lot of things have been done in secret so far and that several investors want to be involved not only with the stadium but also with the whole district project.
Ratcliffe was first thinking about the public money option, but now the club is officially doing the private financing. According to a spokesperson, talks with various parties are still underway, and the side is hopeful about investment.
Nevertheless, there are doubts about United’s financial condition. The club currently has a debt of $1.8 billion (which includes the legacy debt from the Glazer takeover and transfer of liabilities). A new stadium may sharply increase the debt, notwithstanding the expectations of higher revenue in the long run.
