Manchester United’s debt passes the £1 billion mark – Man

Manchester United’s debt has reached a total of over £1 billion for the first time in the club’s history.

An investigation by In The Money found the club’s third-quarter results revealed the debt has increased from £969 million to £1.005 billion this year.

The report indicated the increase was due to a combination of “gross debt, bank borrowings and outstanding transfer fees.”

United’s outstanding transfer fees have reached £279.8 million this year, up from £227.7 million. This figure could rise further, however, as it does not include this summer’s significant financial outlay.

Old Trafford officials spent in the region of £180 million during this transfer window in an effort to further buttress Erik ten Hag’s squad.

Expected revenue has been revised, however, to a club-record in the region of £640 million. A new kit deal with Adidas – a 10 year partnership worth £900 million – was signed earlier in the year; the biggest in Premier League history.

The continued profitability of United may explain why club officials feel confident arming their manager with significant investment, despite the growing debt.

United suffered a dramatic drop in share price last week, following reports the Glazers were considering a U-turn on their plan to sell the club.

The validity of this story is disputed, however, with both Sheikh Jassim and Sir Jim Ratcliffe’s camps indicating they were expecting a prospective takeover to go ahead.

While the initial report may not have been real, the effect it engendered on the stock market was.

United’s shares dropped by 18.2% following the rumours of the Glazer decision – the “biggest daily drop” in the club’s share price since it was listed on the New York Stock Exchange in 2012.

United continue to break records under their American owners, just not the type any fan at Old Trafford wants to see.

Source link