Manchester UnitedNet debt broke the $1 billion barrier for the first time due to summer borrowing to recruit players, taking the club’s total debt to its highest level since the Glazer family takeover in 2005.
In the club’s first-quarter accounts published on Thursday, United’s non-current borrowings – a debt mountain built up since its leveraged takeover of the Glazers – were reported at £481 million ($644m).
But with United using an additional £105m from its revolving credit facility – an additional borrowing mechanism – to take its total borrowings to £268m, United’s total net debt has risen to £749m ($1.002bn). United are paying off their huge debts after the Glazers’ owners tampa bay buccaneers An NFL franchise purchased the first debt-free club 20 years ago.
INEOS Group, led by Britain’s richest man, Sir Jim Ratcliffe, became minority owner in February 2024 after acquiring a 27.7% stake in the club in a deal worth £1.3 billion.
Ratcliffe and INEOS have launched a cost-cutting campaign at Old Trafford with the aim of making the club more sustainable.
Despite breaking the billion-dollar debt mark for the first time, United chief executive Omar Berrada said the latest financial results showed they were making “strong progress in our transformation of the club”.
United are without European football this season but have recorded an operating profit of £13m in the first three months of the campaign, compared with a loss of £6.9m in the same period last term.
United’s total revenue fell 2% to £140.3m in the period due to a lack of continental competition for the men’s team, which is sixth. Premier League Under Reuben Amorim. The women’s team, coached by Mark Skinner, is third in the Women’s Super League and competes in the Women’s Champions League.
“These strong financial results reflect the resilience of Manchester United as we make strong progress in the transformation of the club,” Berrada said. “The difficult decisions we have taken over the past year have resulted in a continued reduction of the cost base and the creation of a more streamlined, effective organization that is capable of leading the club towards improved sporting and commercial performance over the long term.
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“This has helped us invest in our men’s and women’s teams, who are sixth and third in the Premier League and Women’s Super League respectively.”
The financial statement said United “will continue to see the impact of operating cost and headcount reduction programs implemented during the past year.”
INEOS inspected mass redundancies The scheme, which was part of a wider restructuring of club operations, involved £8.6m of exceptional items in the first quarter of financial year 2026.
In that programme, coupled with the reduction in player wages, employee benefits expenditure for the quarter fell by £6.6 million compared to the previous year to £73.6 million.
United’s sponsorship revenue fell 9.3% to £47m, largely due to the lack of a training kit partner after their deal with Tezos ended. United say they are on track to record revenues of between £640m and £660m.
