Manchester United owe more than £1billion through a combination of gross debt, a revolving credit facility and outstanding transfer payments.
United released their annual accounts the for year ending June 30 and despite making record revenues of £648.4million ($784m) they recorded a £28.7m loss.
And new figures released have revealed the extent of the money owed.
While their gross debt remained at $650m (£507.3m), United borrowed an additional £160million on their revolving credit facility, taking their overall borrowing to £773m.
Their full set of accounts show that they owe £317.8million in outstanding transfer payments.
Having drawn out £100m from their revolving credit facility in 2022,this took the total figure owed by United to £1.09billion.
United’s revolving credit facility is thought of by some as a company credit card; when the Covid-19 pandemic struck, United gained a line of credit with Bank of America Securities to aid cash flow and this is the means by which they have paid for various transfers in the past few seasons. The signings of Casemiro and Antony, for instance, were funded using this short-term borrowing.
The Glazer family put Manchester United on the market last November. The two bidders, Qatari royal Sheikh Jassim and British billionaire Sir Jim Ratcliffe, failed to meet the Glazers’ asking price of $8billion (£6.4bn), with both parties instead valuing the club at closer to $6.3bn.
Sheikh Jassim withdrew his bid to buy United in October, leaving the bid from Ratcliffe’s INEOS as the only option on the table. Ratcliffe is proposing a 25 per cent purchase of the club and remains in discussions with the Glazer family.
GO DEEPER
Analysing Manchester United’s accounts: Record revenue, £28.7m loss, interest payments up
(Photo: Michael Regan/Getty Images)
