Manchester United plan to overhaul and refurbish the club’s iconic Old Trafford stadium.
According to The Athletic, when the project is done, new part-owner Sir Jim Ratcliffe will consider revenue-generating options like selling the stadium’s naming rights and raising ticket prices again.
Ratcliffe is keen on modernising the ageing stadium. He estimates a refurbishment costing around £1 billion. Interestingly, the petrochemical billionaire would rather build a new stadium, but it could cost double.
To fund these ambitious plans, United are exploring various avenues. They are currently discussing with major banks like Bank of America in their search for external capital.
Also, the club is weighing up another increase in ticket prices. Season tickets have already seen a 5% increase, but further hikes could be on the horizon.
However, the decision to sell Old Trafford’s naming rights is not straightforward, with many wary of towing that line.
Unlike many European counterparts, United have never sold their stadium naming rights, and fans will likely oppose the change to the stadium’s historic name.
To appease the fans, INEOS could compromise by retaining Old Trafford with a sponsor attached to the name. For example, Barcelona changed their stadium name from Camp Nou to Spotify Camp Nou.
However, if United decide to build a new stadium, a complete naming rights sale is an option.
Ratcliffe is also exploring public funding for the broader area around the stadium, with the backing of Greater Manchester Mayor Andy Burnham.
United’s stadium plans are a major focus for Ratcliffe. He has assembled a task force led by Sebastian Coe, with former United captain Gary Neville also involved.
Their goal is to determine the most viable funding strategy, potentially involving a mix of public funds, private partners, and debt.
The coming months will reveal whether United take on this stadium revamp and how they navigate the financial and traditional considerations.
