Manchester United’s net debt has surpassed $1 billion for the first time, driven by summer borrowings aimed at player acquisitions, marking the club’s highest debt level since the Glazer family’s takeover in 2005. The club’s first-quarter accounts, released on Thursday, indicated noncurrent borrowings amounting to £481 million ($644 million), a figure that represents the escalating debt accumulated since the leveraged takeover.
Additionally, Manchester United accessed £105 million from their revolving credit facility, which brought their total borrowings to £268 million. Consequently, the club’s overall net debt reached £749 million ($1.002 billion). The Glazer family, owners of the Tampa Bay Buccaneers NFL team, has been managing this significant debt since acquiring the formerly debt-free club two decades ago.
In February 2024, the INEOS Group, led by Sir Jim Ratcliffe, the richest man in Britain, became minority owners of Manchester United after purchasing a 27.7% stake for £1.3 billion. Following the acquisition, Ratcliffe and INEOS initiated a cost-cutting initiative at Old Trafford to enhance the club’s sustainability.
Despite crossing the $1 billion debt threshold, United’s CEO, Omar Berrada, expressed that the latest financial results indicate they are making “strong progress in our transformation of the club.”
Although United is not participating in European football this season, they reported a £13 million operating profit for the first quarter, a significant improvement from a £6.9 million loss in the same period last year. However, their total revenue for the quarter decreased by 2% to £140.3 million, attributed to the lack of continental competition for the men’s team, which is currently sixth in the Premier League under coach Ruben Amorim. Meanwhile, the women’s team, coached by Marc Skinner, is third in the Women’s Super League and engaged in the Women’s Champions League.
“These solid financial results demonstrate Manchester United’s resilience as we continue to make progress in transforming the club,” Berrada stated. “The difficult decisions made over the past year have led to a sustainably lower cost base and a more streamlined and effective organization, positioning us for improved sporting and commercial performance in the long run.”
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Berrada added, “This has allowed us to invest in our men’s and women’s teams, which are currently positioned sixth and third in the Premier League and Women’s Super League, respectively.” The financial statement indicated that the club continues to feel the effects of the cost-cutting initiatives and workforce reductions implemented in the previous year.
INEOS oversaw a large-scale redundancy scheme, which was part of a broader restructuring of club operations that resulted in £8.6 million in exceptional items during the first quarter of fiscal 2026. This initiative, along with reduced player wages, led to a £6.6 million decrease in employee benefit expenses for the quarter, bringing them down to £73.6 million.
However, sponsorship revenue dropped by 9.3% to £47 million, primarily due to the absence of a training kit partner following the conclusion of their agreement with Tezos. Despite this, United remains on track to achieve revenues between £640 million and £660 million.