Manchester United added another $125 million to its long-term debt. This move comes after a process of refinancing loans that date back to the acquisition of the club by the Glazer family in 2005.
Documents filed with the U.S. Securities and Exchange Commission (SEC) on Friday confirmed the restructuring of United’s $425 million senior secured debt notes, which are scheduled to mature next year.
The total amount of refinanced debt now reaches US$550 million, rising interest rates to 5.36% per year. Previously, the rate established in 2015 was 3.79%.
With this increase in fees, the club’s annual interest payments are expected to rise by around £10 million, considering the current exchange rate. In the 2024-25 season, United forked out £37 million in interest alone.
With the previous maturity set for June 2027, United’s new debt terms have been extended until 2031. These senior debt notes represent one of two tranches of the club’s long-term debt, which also includes a $225 million secured term loan.
Both debts are a direct legacy of United’s controversial 2005 leveraged buyout, led by American businessman Malcolm Glazer. That operation, at the time, transferred £604 million in debt to the Old Trafford club, a financial model that has imposed considerable costs on the team’s operations since then, diverting resources that could be invested in the pitch or infrastructure.
In addition, United maintains short-term debt, repaid periodically through a revolving credit line (RCF). At the end of May, the club’s RCF loans totaled £150 million.
After this refinancing, the club’s total financial debt reaches the £728 million mark. Outstanding debt for player transfers, meanwhile, stands at £360 million, with £209 million to be paid next year.
In SEC documents, United stated that the new loans would be used to cover the $425 million due next year, in addition to being applied to “general corporate purposes.”
This increase in long-term debt reflects a trend seen in the club’s finances since Sir Jim Ratcliffe acquired a shareholding in February 2024.
United have historically used and paid off portions of their RCF debt, even increasing this amount to £400 million last year. At the end of May, the club still had £250 million in available credit in this modality.
Such financial dynamics mirror the business strategies often used by Ratcliffe in his company, INEOS, the conglomerate that made him a billionaire. Since its founding, INEOS has been largely financed by debt, with renegotiations and refinancing occurring regularly throughout the company’s 28-year history.
