Man United have reported a worrying rise in net debt, which has now passed the $1 billion mark for the first time in the club’s history.
The spike was revealed in their first-quarter financial statement released on Thursday.
The increase comes after significant summer borrowing to fund player recruitment, pushing United’s overall debt to levels not seen since the Glazer family’s controversial leveraged takeover in 2005.
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Once a debt-free club, United now carry a burden that has grown steadily over two decades.
The accounts show noncurrent borrowings of £481 million ($644m), while a further £105 million was drawn from their revolving credit facility.
That pushed total borrowings to £268 million, taking net debt to £749 million ($1.002bn).
Critics have long argued that the Glazers’ dividend policy restricts investment in the team and club infrastructure, with funds diverted to servicing debt instead of strengthening the squad.
INEOS Restructuring Cushions the Blow
Earlier this year, Sir Jim Ratcliffe’s INEOS Group acquired a 27.7% stake in the club for £1.3 billion.
Since then, INEOS has implemented major cost-cutting measures to make operations more sustainable, including staff redundancies and reduced player wages.
These efforts helped lower employee benefit expenses to £73.6 million, with £8.6 million recorded as exceptional restructuring costs, reports Inside World Football.
Despite missing European football this season, United posted a £13 million operating profit, recovering from a £6.9 million loss last year.
Total revenue dipped 2% to £140.3 million, with sponsorship income falling 9.3% after the end of their Tezos training kit deal.
CEO Omar Berrada called the results “robust”, but doubts remain over whether the Glazers’ dividends continue to restrict the club’s ability to invest freely.
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