What's the latest on stadium plans?
- Published
Manchester United's current Old Trafford stadium has been their home since 1910
Some of you have been in touch using our Manchester United 'ask me anything' form and have queried what's going on with the club's stadium proposals.
To say nothing is happening with the stadium plans would be untrue.
Lots of discussions are going on behind the scenes, Lord Coe – who led Sir Jim Ratcliffe's Taskforce that concluded a new stadium was the way forward for United – has begun work as chair of the wider Old Trafford Regeneration project, which includes new homes and transport links and is intended to become a hub for businesses as well as a 'destination' football fans will want to spend time at.
However, the core issues are unresolved.
Firstly, there has been no agreement over the purchase of the land adjacent to Old Trafford that is intended to be used for the new stadium. United do have options – revised plans have already made their way into the public domain that wouldn't require the land – but chief operating officer Collette Roche recently said she was confident an agreement over the land would be reached.
However, until it is – and a price determined – United cannot settle on a design, let alone ask for planning permission to begin the construction process.
Then, there is how the stadium will be paid for – or how much it would cost.
The initial estimates were £2bn and Ratcliffe did deliver improvement to United's Carrington training ground within the £50m budget.
However, for projects of this size and length of construction, the final cost is often well in excess of initial expectations (see HS2).
It is not expected the Glazer family will be contributing, which would mean any payment by Ratcliffe would reduce their shareholding, which is thought unlikely.
United already owe around £1bn through a combination of the historical debt the Glazers used to buy the club, a rolling credit facility and outstanding transfer fees. Simply borrowing on top of that – even in stages – also seems unlikely, especially as global interest rates are higher than they were in the calmer, pre-pandemic, pre-Russia-Ukraine war days.
More likely is the funding being arranged through some kind of separate company that effectively owns the stadium until such time as the debt is reduced and another funding mechanism found or paid off.
In theory, this splits the club from the stadium but the general idea is that, with a 100,000 capacity and a significant percentage of corporate seats, United will generate even more money than it does now. That is how the payment will be made – and no-one can be sure what percentage will be charged on the money, which is another topic for negotiation.
Whatever it is, in order to fill those seats and sell those corporate packages – the club recently sent fans indicative prices which in many instances, ran into thousands of pounds - United need a good team, which costs more money, with no guarantee of success.
Ask Me Anything is a service dedicated to answering your questions.
We want to reward your time by telling you things you do not know and reminding you of things you do.