Manchester United’s ambitious plans to construct a new 100,000-seater stadium have been questioned by a football finance expert.
Fans were left excited after images emerged showing what the £2 billion state-of-the-art arena could look like upon completion.
Last February, the club’s minority shareholders, led by Ineos chairman Sir Jim Ratcliffe, proposed plans to build a new stadium near Old Trafford, dubbed the ‘Wembley of the North.’
Since then, these plans have gained traction, with Ratcliffe establishing a task force that includes former captain Gary Neville, Greater Manchester Mayor Andy Burnham, and Trafford Council leader Sara Todd.
This week, it was disclosed that the plans have received unanimous backing from Trafford Council officials.
Officials believe the project could create over 90,000 jobs, 15,000 new homes, and contribute £7.3 billion to the economy, with a final decision expected by the end of the season.
However, despite the current optimism surrounding the project, football finance expert Stefan Borson has raised concerns regarding the funding necessary to realize such ambitious plans.
“There are questions around the funding of it,” Borson stated on talkSPORT’s YouTube show titled ‘How Football Works’.
“While Ineos is involved, they only hold a 20 percent stake in Manchester United.”
“They are unlikely to invest significantly unless it dilutes the shares of the Glazers. It’s uncertain whether the Glazers will accept equity investment into Manchester United that would dilute their ownership, or if the financing will rely on additional debt.”
“Remember, Manchester United is already burdened with considerable debt, so layering on another potential £3 billion could strain the already tight £2 billion budget.”
“Is it feasible for United to secure funding for that amount? I believe it will be challenging.”
“Significant issues remain regarding the funding of the infrastructure build beyond what government intervention can assist with, which I believe will only be part of the solution.”
This week, Chancellor Rachel Reeves announced her support for the regeneration project proposed by Manchester United’s stadium task force.
Meanwhile, Mayor Burnham has likened the ambitious proposals to those of the London 2012 Olympics.
“With our devolved powers, we’re mobilizing the Greater Manchester system to ensure growth over the next decade and reap the benefits for our city-region and the UK as a whole,” Burnham stated.
“The project surrounding Old Trafford represents the most significant urban regeneration opportunity the country has seen since the London 2012 Olympics and is a key component of our 10-year plan to accelerate growth across Greater Manchester.”
“We look forward to collaborating with the Government to relocate freight from the site around Old Trafford to new locations, thereby freeing up capacity for our rail network and unlocking substantial regeneration potential—benefits that will extend across the North.”
Manchester United CEO Omar Berrada remarked: “The realization of a world-class stadium could serve as a catalyst for significant regeneration in a part of Greater Manchester that requires new investment to thrive once more.”
“We cannot achieve that broader goal alone, which is why we appreciate the Chancellor’s announcement and the ongoing support from the Mayor of Greater Manchester and Trafford Council.”
“If we collaborate effectively, there exists a once-in-a-lifetime opportunity to create a landmark project around Old Trafford that the entire region can take pride in.”
