Manchester United have settled £120 million of debt from the club’s revolving credit facility following Sir Jim Ratcliffe’s investment in the club.
Ratcliffe acquired a 27.7% stake in the club with his purchase of approximately £1.05 billion.
However, the 71-year-old also committed £235 million to the club for the renovation of the stadium.
However, United's recent financial results revealed that the club had a debt of £773.3 million, not including transfer fees.
The Glazers have relied on a ‘credit facility’ in recent years – which is essentially a credit card with high interest rates – to conduct transfer business.
The club had around £260 million remaining on their credit facility, which had a limit of £300 million.
However, the club has announced that they have paid off £120 million of their total debt, reducing it to £653.3 million.
This has reduced the club’s credit facility to £140 million, leaving a remaining buffer of £160 million for potential future spending.
While Ratcliffe's £235 million pledge is likely still designated for Old Trafford, the club has decided to use the new investment to clear the credit facility, considering the high interest it incurs.
United are exploring options for the future of Old Trafford, looking to either renovate the current stadium for approximately £1 billion or build a new one for around £2 billion.
Ratcliffe prefers the construction of a new stadium.
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