Man United pile on more long-term debt in latest financial move | OneFootball

Manchester United have taken out an additional $125million in long-term debt as part of a refinancing of borrowings stemming from the Glazers’ controversial leveraged buyout of the club in 2005.

Refinancing plans

Earlier this month, a report covered by The Peoples Person relayed that United were considering that was set to mature next year through the private placement market.

It was stated that United had opened discussions with multiple banks, although nothing concrete had materialised yet.

This came off the back of rumours that a faction of the Glazers are looking to sell their stakes and sever ties with the club after 21 years. Some of them are believed to have been quietly planning their exit.

The Glazer family’s full takeover of United was funded largely by loans taken out against the club’s assets. This loaded the club with £525m of debt, pushing it into the red for the first time since 1931.

Now, The Athletic have confirmed an update on the state of affairs, noting that United have increased their long-term debt by $125m after refinancing loans tied to the Glazers’ takeover.

Increased long-term debt

The Athletic say, “A filing to the U.S Securities and Exchange Commission (SEC) confirmed on Friday that United have restructured their $425m senior secured notes, which were due for repayment next year.”

“The refinanced debt now amounts to $550m, at a higher interest rate of 5.36 per cent. The previous rate, secured in 2015, was 3.79 per cent.”

It’s understood that at the higher interest rates, United are understood to be facing an extra £10 million outlay based on current exchange rates.

The positive from United’s point of view is that the date for repayment has now been extended from June 2027 to 2031.

When both long-term debt and short-term debt (the latter serviced through a revolving credit facility) are combined, the club’s total financial debt after refinancing comes to £728m.

United owe £360m in outstanding transfer fees, including £209m due within the next year. The Athletic further note that United will use borrowings to pay the $425m due to expire next year and for “general corporate purposes”.

Featured image Christopher Furlong via Getty Images

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The Peoples Person has been one of the world’s leading Man United news sites for over a decade. Follow us on Bluesky: @peoplesperson.bsky.social