Manchester United have agreed a new $550m (£410m) funding deal that will see the interest rate on part of their debt rise from 3.79% to 5.36%, increasing the cost of servicing their £1bn-plus borrowings. The move refinances $425m in bonds that were due to mature in June 2027, giving the club a little more financial flexibility after more than 12 months of renegotiations by finance chiefs. The club said the money will be used to prepay the outstanding principal amount and accrued interest, and for general corporate purposes.
United’s third-quarter accounts, to 31 March 2026, showed net finance costs of £20.3m for the previous three months and £55.7m for the previous nine, partly attributed to an unfavourable swing in foreign exchange rates. The club owed £1.29bn at the end of last year, with additional liabilities of more than £500m, the vast majority being outstanding transfer fee payments. Since the Glazer family completed their leveraged buy-out in 2005, respected football finance blogger Swiss Ramble estimated United have paid £852m in interest alone. The club also extended the repayment term of a $225m secured loan from 2029 to 2031, which carries interest of 1.25% to 1.75% above the Secured Overnight Financing Rate.
“Manchester United agree $550m debt deal with higher interest as Casemiro's free transfer to Inter Miami faces £750k dispute with LA Galaxy.”
Amid these financial pressures, United are allowing midfielder Casemiro to leave on a free transfer when his contract expires this summer. The 34-year-old had been expected to join David Beckham’s Inter Miami, but a dispute over MLS discovery rights has thrown the move into doubt. LA Galaxy claim they registered formal interest in Casemiro first and are demanding £750,000 in compensation for his rights. Casemiro and his advisors had previously engaged in discussions with LA Galaxy and received contractual proposals, but after a visit to family in Miami he is reported to have had a change of heart, making Inter Miami his preferred destination.
Discovery rights disputes are not uncommon in Major League Soccer – Marco Reus’s move to LA Galaxy required a compensation deal with Charlotte FC, who initially demanded £602,000 before settling for half that. MLS rules allow clubs to place up to five players on a discovery list and sign them through that process. Until the dispute with LA Galaxy is resolved, Casemiro’s move to Florida remains in limbo, even as he is on World Cup duty with Brazil. For United, the escalating debt costs and the departure of a high-earner like Casemiro underline the financial challenges facing the club as they also consider how to fund a new £2bn stadium at Old Trafford, with sources optimistic about a land deal with Freightliner this summer.