Last week, The Athletic reported that one of the next steps Sir Jim Ratcliffe and INEOS might take to maximize revenue from existing and new streams could be to form another type of partnership with a new company. According to reports, Manchester United has held internal discussions about selling the naming rights to Old Trafford.

Seeking higher revenues

United has held preliminary talks with major financial institutions, including Bank of America, to explore a range of financing options to raise the capital needed for a potentially multi-billion-pound project, which could be either a thorough renovation of Old Trafford or the construction of an entirely new facility. They are likely looking for around £50 million per year for 10 years as part of a £500 million deal, reports Manchester Evening News.

Manchester United declined to comment on the matter, but sources close to the club – who spoke anonymously due to the sensitivity of the issue – insisted that while discussions have taken place, no decisions have been made yet. Bank of America also did not comment on the reports.

© Adam Koprowski

Considering a multi-million investment

According to The Athletic, if Manchester United decides to renovate their current stadium, the name Old Trafford will be retained, with the new partner's name simply added to it. Conversely, if a completely new stadium is built, the authorities are considering selling the naming rights entirely. The Athletic also reports that the club is considering further ticket price increases to boost revenue. In the 2024/2025 season, there will be a 5% increase in season ticket prices.

United’s financial results published in the second quarter of the fiscal year in March showed that the club still has a debt of £653.3 million, excluding money owed for transfer fees. This debt is largely a legacy of the Glazer family’s ownership. These financial results also revealed that £120 million out of Ratcliffe’s £238 million cash injection for the club – which was intended for infrastructure – was used to pay off a revolving credit facility. United’s logic may have been that reducing the high-interest credit debt would then allow them to borrow money at a lower interest rate under another mechanism and use it for infrastructure investments.

© Jose Francisco del Valle Mojica (cc: by)