Manchester United have refinanced $425m of debt in a $550m (about £410m) deal which will see annual interest payments on the borrowings almost double.
United will now pay almost $30m in annual interest on the new senior secured notes, which have been priced at 5.36 per cent and replace a previous tranche of debt which was due to be repaid in June 2027. The new deal extends that timeline through to June 2031.
Previously, Manchester United were paying a fixed rate of 3.79 per cent, which equated to cash interest costs of around $16m annually.
The debt – which is part of a wider patchwork which, including money owed in transfer instalments, means United owe north of £1bn in total – is primarily a legacy of the Glazer family’s leveraged takeover in 2005.
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While lucrative Champions League qualification has soothed short-term financial anxieties for 2026-27, United have consistently spent more than they have earned in recent seasons, relying on cash injections from Sir Jim Ratcliffe and lenders to bridge the gap.
While the majority of the refinanced secured notes will cover the previous debt deal, the extra $125m will go towards what the club described in a filing with the Securities and Exchanges Commission as “general corporate purposes.”
The new loan is overseen by Bank of New York Mellon, who will act as paying agent for the debt pooled from private institutional lenders.
United’s debt, while broadly manageable, makes the task of securing finance for a planned 100,000-seater stadium more difficult. That project would almost certainly cost north of £2bn and, experts say, could see the club’s total annual interest burden exceed £100m.
The news comes amid reports that members of the Glazer family – which consists of six siblings – are exploring the possibility of selling shares in the club.
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