Manchester United’s £2 Billion Stadium Plans

Manchester United’s owners plan to decide by the end of 2024 whether to invest over £2 billion in constructing a new 100,000-seat stadium. Sir Jim Ratcliffe, co-owner of the club envisions creating a “Wembley of the North.” In collaboration with Trafford Council, he has formed a taskforce to assess the feasibility of building a new stadium and redeveloping Old Trafford.

Lord Sebastian Coe chairs the taskforce. The group also includes Greater Manchester Mayor Andy Burnham and former United captain Gary Neville. The group has met four times and, as a result, focused mainly on constructing a new stadium instead of renovating the existing one. Renovating Old Trafford would cost around £1.2 billion and, consequently, take more time. No decision has been reached yet.

Ratcliffe’s £1.25 billion acquisition of a 27.7% stake in Manchester United included £237 million specifically for future stadium investments. Additionally, his Ineos Group has taken over football operations from the Glazer family, who remain updated on the discussions. Renovating the 74,310-capacity Old Trafford presents several challenges. These include the railway line behind the Sir Bobby Charlton Stand and the need to significantly reduce capacity during construction.

These issues would lead to fan inconvenience and revenue loss. Unlike Tottenham, which used Wembley during their new stadium’s construction, United does not have a suitable alternative venue. The club aims to build a new stadium that reflects its industrial roots. Additionally, they plan to relocate the statues from Old Trafford to the new site. Ratcliffe hopes local and national governments will contribute, likely focusing on improving transport links.

However, they still need to finalize the stadium’s financing. Currently, Manchester United’s debt stands at £647.5 million excluding transfer fees with £504.5 million from historic debt and £143 million from a rolling credit facility. The Glazers stay informed about the planning process. Moreover, the club’s COO, Collette Roche, researches stadium redevelopments worldwide, including Perth’s Optus Stadium and Real Madrid’s renovated Bernabeu Stadium.

Furthermore, discussions have taken place with officials from the SoFi Stadium in Inglewood which Stan Kroenke funded entirely, paying $5 billion (£3.88 billion) without city funding or land acquisition.