"Manchester United's net debt has broken the $1 billion barrier for the first time due to summer borrowings for player recruitment taking the club's overall debt to its highest level since the Glazer family takeover in 2005. In the club's first quarter accounts, published on Thursday, United's non-current borrowings -- debt mountain built since the Glazers' leveraged takeover -- were reported at £481 million ($644m)."
"But with United using a further £105m from their revolving credit facility -- an additional borrowing mechanism -- to take their total borrowings in that vehicle to £268m, United's total net debt has grown to £749m ($1.002bn). United have been servicing their huge debt since the Glazers, the owners of the Tampa Bay Buccaneers NFL franchise, bought the previously debt-free club 20 years ago."
"The INEOS Group, led by Britain's richest man Sir Jim Ratcliffe, became minority owners in February 2024 after acquiring a 27.7% stake in the club in a deal costing £1.3bn. Ratcliffe and INEOS have since undertaken a cost-cutting drive at Old Trafford aimed at reducing costs and making the club more sustainable. Despite breaking the billion dollar debt mark for the first time, United chief executive Omar Berrada claims the latest financial results show they are making "strong progress in our transformation of the club.""
Manchester United reported non-current borrowings of £481m and drew an additional £105m from a revolving credit facility, taking that facility to £268m and total net debt to £749m ($1.002bn). The club has serviced leveraged takeover debt since the Glazer family acquisition in 2005. The INEOS Group acquired a 27.7% stake for £1.3bn in February 2024 and has implemented cost-cutting measures to improve sustainability. United recorded a £13m operating profit in the first quarter after a £6.9m loss a year earlier, while revenue fell 2% to £140.3m without European competition.
Read at ESPN.com
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