“Strong Progress” says Berrada as United Debt Passes 1 Billion Dollars

Manchester United chief executive Omar Berrada insists the club is moving in the right direction even as its net debt climbs beyond 1 billion dollars for the first time. The financial milestone, driven by summer spending and increased borrowing, has sparked fresh scrutiny over the long-term sustainability of the Glazer-era model.

United’s first quarter accounts released on Thursday confirm the scale of the financial burden. Noncurrent borrowings have risen to 481 million pounds, marking the continuation of the debt structure created when the Glazer family completed their leveraged buyout in 2005. The club has now drawn an additional 105 million pounds from its revolving credit facility, pushing total borrowings to 268 million pounds and taking net debt to 749 million pounds, the equivalent of just over 1 billion dollars based on current exchange rates.

Although the club has existed under significant debt for two decades, this is the highest debt level since the original takeover. The arrival of INEOS in February 2024 brought renewed expectations of financial restructuring. Sir Jim Ratcliffe’s group acquired a 27.7 percent stake for 1.3 billion pounds and quickly launched a cost cutting program designed to stabilize operations at Old Trafford.

Despite the headline numbers, Berrada framed the new report as evidence of recovery. Speaking after the results were published, he said the club is making strong progress and highlighted what he described as a more efficient cost base and a more agile organisational structure.

Berrada pointed to what he called difficult decisions made over the previous year, arguing that streamlining efforts have put United in a stronger position to pursue long term sporting and commercial goals.

The contradiction between rising debt and assurances of progress will intensify debate around the club’s direction under the dual leadership of the Glazers and INEOS. With Manchester United missing out on European football this season, revenue has naturally dipped. Yet the club continues to invest heavily in the transfer market, bringing in players such as Benjamin Sesko and Matheus Cunha during the summer window. How sustainable is this approach when the debt profile climbs to historic highs?

From a financial engineering standpoint, United continue to lean on borrowing capacity rather than pure cash generation. Some analysts will question whether the INEOS restructuring can generate savings quickly enough to offset the increased cost of borrowing. Others see the current phase as a necessary reset after years of inflated wage bills and inconsistent squad investment.

The early season revenue picture reflects the absence of European competition. Total revenue for the quarter slipped by 2 percent to 140.3 million pounds, although the club still reported a 13 million pound operating profit compared with a 6.9 million pound loss in the same period last year. The men’s team under Ruben Amorim sit sixth in the Premier League. The women’s side, coached by Marc Skinner, are third in the Women’s Super League and competing in the Women’s Champions League.

Cost cutting measures are visible across the organisation. INEOS implemented a broad redundancy plan that generated 8.6 million pounds in exceptional costs for the first quarter of fiscal year 2026. Reduced wages and staff adjustments brought employee benefit expenses down by 6.6 million pounds to 73.6 million pounds during the period.

Commercially, sponsorship income has taken a hit. Revenue from that stream dropped by 9.3 percent to 47 million pounds, primarily due to the lack of a training kit sponsor following the expiration of the agreement with Tezos.

Even so, the club maintains its forecast of total revenues between 640 million and 660 million pounds for the year, a projection that assumes continued growth in matchday and commercial performance under the new operating model.

United will now face questions about how the club balances ambition with financial discipline in the coming seasons. Does the combination of record debt and aggressive restructuring mark a turning point or a warning sign? INEOS and Berrada are confident the club is on the right track. Supporters and analysts will watch closely to see whether the numbers eventually match the promises as the financial and sporting pressures rise.Palace leave Dublin with momentum, confidence, and a clear path toward the top eight. A win against KuPS could reshape their entire season and spare them the complications of a February playoff round. What began as a routine group fixture has suddenly become a decisive moment in their European campaign.