Manchester United’s annual report for the 2024-25 season, published on
Thursday evening, showed the club’s net transfer debt at the end of June was
£344.5m — £73.4m and 27 per cent higher than when Ratcliffe and INEOS gained
sporting control at Old Trafford. It is a huge sum and it does not even include
United’s post-June transfer activity, when a further £92.1m net was spent.
Transfer debt is on the rise across football, particularly
in the Premier League, where the quantum of club spending outstrips the ability
to pay it off in one swoop. Pushing payments into the future is also generally
advantageous — provided inflation doesn’t hit or dip below zero, the money in
your pocket now is more valuable than it will be in the future as purchasing
power diminishes.
Even so, United’s transfer debt is massive, sitting at 52
per cent of a revenue figure for which the club have already projected a £7m to
£27m decline in 2025-26. The only Premier League clubs whose transfer debt to
revenue figure exceeded that level at last check were Bournemouth, who
redressed the balance with big sales this summer, Chelsea, who have received
enormous owner funding to foot their bills (and we should note this is an
estimate, as Chelsea don’t disclose transfer debt), and Tottenham
Hotspur, who’ve had cash concerns of their own recently. United’s transfer
debt is now the Premier League’s highest, based on known figures.
Cuts to expenditure have been the off-field story of
Ratcliffe’s tenure, and United’s wage bill has tumbled. At £313.3m last season,
it ranks fifth in England against most recent figures for other clubs (all
2023-24), the lowest position United’s staff costs have dropped to since the
Premier League was formed. That will help their future finances.
Improved player sales have been another help. United
generated £69.8m primarily from the departures of Scott McTominay, Mason
Greenwood and Aaron Wan-Bissaka. From July to September, they earned a further
£75.7m by shipping off Alejandro Garnacho and Antony, alongside sell-on fees
received via moves made by former players Anthony Elanga, Alvaro Carreras and
Maxi Oyedele.
United’s revolving credit facilities (RCFs), held for years
beforehand but never used until the rupture of the Covid-19 pandemic, are now
being leaned on. RCFs are, effectively, corporate overdrafts which aid
day-to-day liquidity.
Debt nears all time
high
Combined with long-term United States dollar-denominated
debt that refuses to budge, it means United’s overall debt is close to the high
watermark of 2009-10, when it topped out at £773.3m. When you include the £105m
post-June drawdowns and reflect the latest exchange rate, United’s gross debt
stands at £750.2m.
The debt is near an all-time high even after Ratcliffe
injected £238m across 2024. Even with substantial funding from Ratcliffe and
INEOS, United’s debt might actually be higher than the day they walked through
the door.
Interest payments at Old Trafford have long been normalised,
but it’s worth highlighting just how great they are — and how they impact
United’s business now more than ever.
Cash paid out to service loans is now at £853m since the Glazer family
took over in 2005, a further £37.1m drain on liquidity last season.
Arguably the company is over leveraged. But then, as with all debt, if you can
service it, there are no immediate problems.
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