Manchester United’s owners are expected to make a final decision on investing over £2 billion in a new 100,000-seat stadium by the end of 2024.
Sir Jim Ratcliffe, co-owner of the club, envisions constructing a “Wembley of the north” and, in collaboration with Trafford Council, has established a taskforce to evaluate the feasibility of a new stadium and the redevelopment of Old Trafford.
The taskforce, chaired by Lord Sebastian Coe and including Greater Manchester Mayor Andy Burnham and former Manchester United captain Gary Neville, has met four times. Discussions have predominantly focused on constructing a new stadium rather than renovating the existing Old Trafford, which would cost approximately £1.2 billion and take longer to complete.
No final decision has been made yet.
Ratcliffe’s £1.25 billion acquisition of a 27.7% stake in the club included £237 million earmarked for future stadium investment. His Ineos Group has assumed control of football operations from the Glazer family, who remain as majority owners.
Challenges in renovating Old Trafford, which has been Manchester United’s home since 1910 and has a current capacity of 74,310, include a railway line behind the Sir Bobby Charlton Stand and the need to significantly reduce capacity during construction. This would result in considerable inconvenience to fans and a major loss of revenue.
Unlike Tottenham Hotspur, which used Wembley Stadium while its £1.2 billion new stadium was built, Manchester United lacks a suitable alternative venue.
The club seeks a new stadium that reflects its industrial city heritage, with plans to relocate the statues from the current stadium to the new one.
Ratcliffe is seeking contributions from local and national government for the project, primarily for transport infrastructure improvements.
Funding arrangements for the stadium remain under discussion.
Currently, Manchester United’s debt stands at £647.5 million, excluding outstanding transfer fees. This comprises $650 million (£504.5 million) in historic debt from the Glazer family’s 2005 takeover and £143 million from a rolling credit facility.
The Glazers are being updated on the progress of these discussions.
Manchester United’s Chief Operating Officer, Collette Roche, has been reviewing global stadium redevelopments, including Perth’s Optus Stadium and Real Madrid’s renovated Bernabeu Stadium.
Officials have also engaged with representatives from SoFi Stadium, the 70,000-capacity venue in Inglewood, California, where Manchester United faced Arsenal in a recent US tour match.
Inglewood Mayor James T Butts stated that Gunners’ owner Stan Kroenke financed the entire $5 billion (£3.88 billion) construction of SoFi Stadium, home to the LA Rams and LA Chargers. He explained, “Ordinarily, when a team goes into a new stadium, the city pays $300-$500 million (£232.86 million-£388.1 million) for construction costs or an equivalent amount of land. We did neither of those things. What we had was the location. We made a deal that suited both of us but it didn’t involve funding or buying land. Stan Kroenke paid $5 billion (£3.88 billion).”
