Manchester United Increase Debt to £728m After Major Refinancing Deal
Manchester United have completed a significant refinancing package that has increased the club's long-term debt while extending the repayment timeline for borrowings associated with the Glazer family's takeover.
Manchester United extend debt repayment to 2031, increase borrowing to $550m and continue pursuing transfer targets.
According to documents filed with the U.S. Securities and Exchange Commission, the club has refinanced its $425 million (£318m) senior secured notes, which had originally been due for repayment next year.
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The restructuring has raised the value of those notes to $550 million (£412m). At the same time, the interest rate attached to the debt has increased from 3.79 per cent in 2015 to 5.36 per cent. The higher rate is expected to cost the club approximately £9.7 million more per year.
One benefit of the arrangement is the extension of the repayment deadline to 2031. However, that comes alongside increased annual interest expenses. After paying £37 million in interest during the 2024-25 season, United are now expected to face an additional annual cost of around £10 million.
Manchester United's debt structure includes not only the senior secured notes but also a secured term loan facility worth an estimated $225 million (£168.3m).
These debts stem from Malcolm Glazer's takeover of the club, a move that saw £604 million of debt loaded onto Manchester United and remains a source of controversy.
Overall, the club's debt now totals £728 million. Of that figure, £485 million is linked to the leveraged takeover. SEC filings further show that £93 million in cash has been allocated for "general corporate purposes".
While managing its financial commitments, United continue to be active in the transfer market. The club are on the verge of securing Brazilian midfielder Ederson from Atalanta for a reported fee of around £39 million.
The club are also considered favourites in the race to sign West Ham United midfielder Mateus Fernandez, who is valued at £80 million.
Transfer business may not stop there as Michael Carrick prepares for his first season as Manchester United's full-time manager. United are believed to be searching for reinforcements at left-back, in attack, in central defence and for a backup goalkeeper role.
The refinancing could provide additional support for those recruitment efforts. In addition, the club may consider drawing from a £250 million revolving credit facility after reducing its usage by roughly £110 million since April.
Strong on-field performance has also boosted United's finances. A third-place league finish combined with Champions League qualification is believed to have delivered approximately £191.5 million through prize money and other related financial gains.
