United's debt pile

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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The Political Economy of Football V2

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