The years of under-investment from the Glazers have left United fans with a decaying, second-rate stadium.
Sir Jim Ratcliffe, the new co-owner, is looking at the
possibility of United building a 90,000-seater stadium, dubbed a “Wembley of
the North” (ironically once a title claimed by Port Vale).
Building such a stadium, at a cost of £1.5 billion to £2
billion, next to Old Trafford is one of two options that Ratcliffe is
considering. The other involves refurbishing or redeveloping the “Theatre of
Dreams”, which would cost approximately £800 million.
The new stadium would be located behind the Stretford End as
United own a big stretch of land around the stadium which is used for either
car parking or offices. The idea is not simply to build a new stadium but to
create a new, lively area full of businesses, offices, bars, restaurants and a
cinema.
Ratcliffe will put some money towards the stadium — he has
already committed £245 million to upgrading the club’s infrastructure as part
of his minority investment deal — but Ineos, his company, is looking for
outside investors, too, and possible government funds under the “Levelling Up”
initiative. This seems unlikely to me:
it’s not called the ‘levelling up with Manchester City initiative’.
As United have stated for some time, they have not ruled out
the idea of raising money through selling the naming rights to any new stadium.
They will, however, insist on Old Trafford remaining the core part of the
stadium’s name, so for example, it could be called “Old Trafford in association
with company X”.
United would have to service the debt on a new or
redeveloped stadium, but sources said a project that contributed to the future
growth of the club should be viewed through a different lens to the Glazers’
leveraged buyout of the club in 2005.
United will benefit from Ratcliffe’s expertise in big
infrastructure projects. Ineos is building a £5 billion chemical plant in
Antwerp, Belgium, dubbed “Project One” and knows how to raise capital through
large financing deals.
The second option, for United to redevelop Old Trafford,
would be much cheaper but is not without its difficulties. United would have to
build over the railway track behind the Sir Bobby Charlton Stand if it were
moved backwards to create room for more seats.
Knocking the stand down and rebuilding it would lead to a
temporary reduction in match day revenue, whereas if United built a new stadium
instead, they could carry on playing at Old Trafford while the work is carried
out.
A complete redevelopment of Old Trafford could, sources
said, take ten years to complete.
Ratcliffe, 71, wants to move quickly on this project as soon
as his investment is ratified. There is an acknowledgement from Ineos and the
Glazers, who are still the majority shareholders, that the club must seek the
opinions of fans, local residents, regulatory bodies, Trafford Council and
private investors before coming to a final decision.
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