Manchester United is one of the most illustrious names in Europe. Not only have they established an empire across the world which has been constitued by countless endorsements and other sources of income but they have penned a legacy so vast that even repeated failures in the recent time, couldn’t shake their financial stature emphatically.
United’s net worth is 3.8 billion Euros, an amount that sets United above others in terms of money.
The Devils drafted a history so illustrious over their long course of glittering years, that even a small dent in the club’s reputation doesn’t go unnoticed. It rose to unparalleled greatness under the leadership of Sir Alex Ferguson and cemented their place in the panoply of legends.
Unfortunately, after the departure of Fergie from the helm, the team entered into a receding tailspin of entropy, not just in the standards of the game, but monetarily too. However, what seems like entropy for others is a small niggle in the club’s budget.
However, a glaring concern has been manifesting already and that is debt. The last decade has seen the club ambling into debts which can be a major blow to the former European champions.
Is Manchester United in Debt?
As per reports of 2019, the club is already starting to feel the heat of existing debts. Going by the reports of September 24th, 2019, the Devils are in a debt of 203.6 million Euros, an amount that has been lowered from 301.7 million Euros.
However, the club announced proceeds of 627.1 million Euros and an operating profit of 50 million Euros in 2019. The club was free from any debts until 2005, however, there has been frequent fluctuations in debt with the highest being 778 million Euros in 2010.
Why is Manchester United in debt?
One of the primary reasons for Manchester United being in debt is the upshot of the takeover of the club by the Glazers in 2005.
The Glazer takeover has burdened the club with a debt of 525 million Euros through loans secured against its assets in a move known as a leveraged buyout.
Prior to this purchase, United was debt-free. A refinancing of the debt transpired in 2010 when it rose to over three-quarters of a billion pounds.