Manchester United has made significant progress in reducing its debt following Sir Jim Ratcliffe’s investment in the club
Ratcliffe acquired a 27.7% stake in the club with a purchase totaling around £1.05 billion. Additionally, he pledged £235 million towards refurbishing the stadium.
The club’s latest financial results revealed that Manchester United owed £773.3 million, excluding transfer fees.
The Glazer family, owners of the club, had utilized a credit facility akin to a high-interest credit card for transfer dealings, with around £260 million remaining to be paid off and a limit of £300 million on the facility.
Sir Jim’s cash injection to the rescue
This reduction has been achieved by utilizing the funds from Sir Jim Ratcliffe’s investment to pay off a portion of the credit facility. As a result, the credit facility now stands at £140 million, with a buffer of £160 million available for further spending if required.
While Sir Jim Ratcliffe’s pledge of £235 million was initially intended for stadium refurbishment, the club has opted to prioritize paying off the credit facility due to its high-interest rates.
Manchester United is considering the future of Old Trafford, contemplating either a £1 billion refurbishment or the construction of a new stadium estimated to cost around £2 billion. Ratcliffe reportedly favors the construction of a new stadium over refurbishment.
Two Giants lock horns in crucial Fa cup tie
The upcoming FA Cup tie between Manchester United and Liverpool promises to be a thrilling encounter steeped in historic rivalry. As two of English football’s most storied clubs, their clashes always carry immense significance.
This fixture, set to take place at a crucial stage in the competition, adds an extra layer of intensity. Both teams will be eager to advance in the tournament and secure silverware, injecting further excitement into an already fiercely contested rivalry.
