Manchester United have been forced to swallow a steep rise in interest payments after renegotiating part of their £1bn-plus debt, borrowing $550m (£410m) at a rate of 5.36% — up from the 3.79% they had been paying.
The club’s finance chiefs spent more than 12 months renegotiating the terms, knowing they would not be able to match the previous rate on the $425m (£317m) in bonds due to mature on 25 June 2027. The new $550m borrowing settles that debt and gives the club a little more financial flexibility.
“Man Utd agree new $550m debt deal with interest rate rising from 3.79% to 5.36% as club's debt exceeds £1bn.”
United said the money will be used to “prepay the outstanding principle amount of the 2027 notes, together with accrued and unpaid interest” and also for “general corporate purposes”.
The move underlines the significant sums involved in financing the club in its current form. In its third quarter accounts, to 31 March 2026, United confirmed net finance costs of £20.3m for the previous three months, and £55.7m for the previous nine months, although that was put down to an “unfavourable swing in foreign exchange rates”.
Since the Glazer family completed their leveraged buy-out in 2005, respected football finance blogger Swiss Ramble estimated United had paid £852m in interest alone as of September 2025. Figures in the club’s third quarter release show they owed £1.29bn at the end of last year. The £317m was part of that debt, with additional “liabilities” of more than £500m — the vast majority of which are outstanding transfer fee payments.
In addition, United have extended the repayment term of their secured loan of $225m (£168m) that was due to be paid by 6 August 2029, to 10 June 2031. In March, the club stated that loan attracted interest of between 1.25% and 1.75% above the Secured Overnight Financing Rate (SOFR), which reflects the cost of borrowing cash overnight.
The deal comes as United officials are still to decide how to fund their new stadium plans. It has been estimated a 100,000-capacity ground will cost at least £2bn and probably more given growing global costs of raw materials and labour. Sources have spoken optimistically to BBC Sport about the prospect of a deal being done with Freightliner, who own the land United want to build on, this summer. That would allow plans to be drafted and a true nature of the costs involved will begin to emerge.