Man Utd still £1bn in debt with £63.5m spent on new stadium

Manchester United's overall debt remains over £1bn despite Sir Jim Ratcliffe's extensive cost-cutting measures, with the club also confirming it has spent £63.5m buying land for their new stadium.

Amid a backdrop of fan protests and a disappointing start to the season that has left United 12th in the Premier League and already out of the EFL Cup, United have announced record revenues of £677.6m and a £22.6m operating profit despite not playing in Europe for the first time in a decade.

This represents a huge shift from the £113.2m loss in 2023-24.

However, while they have saved £8.5m of a projected £16.5m pay-off to axed boss Ruben Amorim after he accepted a job at AC Milan, other costs have increased.

Net finance costs for the year were £69.6m, an increase of 228.3%. United put most of this down to a foreign exchange loss. According to football finance expert Kieran Maguire, this sum alone has now exceeded £1bn since the leveraged Glazer family buyout in 2005.

In addition, United also confirmed they spent £63.5m of an additional $125 (£94.14m) added to their historic debt during a summer refinancing move on land for their new stadium . The club has not explained what it has done with the remainder. The stadium itself is likely to cost in excess of £2bn.

It means the club's overall debt, while reducing from £1.3bn at the end of December, is still over £1bn, made up of the historic debt, which now stands at £577.6m, the £111.4m outstanding on its revolving credit facility, and outstanding transfer fees, which club sources say represents approximated 75% of the £473m listed and being owed as 'trade and other payables'.

This comes at a time when supporters are furious about what they believe to be chronic under investment in Michael Carrick's first team squad this summer.