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Manchester United Contemplates £2bn Mega-Stadium Project Amidst Financial Uncertainties

Manchester United’s owners aim to decide by the end of 2024 whether to invest over £2 billion in a new 100,000-seat stadium. Sir Jim Ratcliffe, United’s co-owner, envisions a ‘Wembley of the north’ and has assembled a taskforce with Trafford Council to explore the feasibility of a new stadium versus redeveloping Old Trafford.

Chaired by Lord Sebastian Coe, the taskforce includes Greater Manchester Mayor Andy Burnham and former United captain Gary Neville. According to club sources, the taskforce has convened four times, primarily discussing a new-build rather than a costly and lengthy renovation of the current stadium, estimated at £1.2 billion.

While no decision has been made, Ratcliffe’s £1.25 billion acquisition of a 27.7% stake in the club included £237 million earmarked for stadium investment. His Ineos Group now oversees football operations, previously managed by the Glazer family.

Renovating the 74,310-seat Old Trafford, United’s home since 1910, presents challenges such as a railway line behind the Sir Bobby Charlton Stand and reduced capacity during construction, leading to fan inconvenience and revenue loss. Unlike Tottenham, which used Wembley during their stadium’s rebuild, United lacks an alternative venue.

The club aims for a new stadium that honors its industrial city roots, potentially relocating statues from Old Trafford to the new site. Ratcliffe seeks local and national government funding, likely for transport links, as financing remains under discussion.

United’s current debt stands at £647.5 million, excluding transfer fee obligations, comprising £504.5 million from the 2005 Glazer takeover and £143 million from a credit facility. The Glazers are kept informed of the ongoing discussions.

United’s COO, Collette Roche, has evaluated global stadium redevelopments, including Optus Stadium in Perth and Real Madrid’s renovated Bernabeu Stadium. Discussions have also taken place with officials at the 70,000-seat SoFi Stadium, where United recently played Arsenal.

Inglewood Mayor James T. Butts highlighted that Gunners’ owner Stan Kroenke fully funded the $5 billion SoFi Stadium without city financial support, noting, “We made a deal that suited both of us but it didn’t involve funding or buying land. Stan Kroenke paid $5bn.”

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