Manchester United pay off large chunk of debt using Sir Jim Ratcliffe’s cash injection | Football

Sir Jim Ratcliffe wants to build a new Old Trafford (Photo credit should read DIRK WAEM/AFP via Getty Images)

Manchester United have paid off £120million of debt on the club’s revolving credit facility following Sir Jim Ratcliffe’s investment in the club.

Ratcliffe took a 27.7% stake in the club following his purchase of around £1.05bn.

However, the 71-year-old pledged a further £235m to the club to be used for refurbishment of the stadium.

But United’s financial results on Tuesday showed the club owed £773.3m, excluding the money owed on transfers.

The Glazers have leaned 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 £260m to pay off on their credit facility, and it had a limit of £300m.

Elevated view of Old Trafford

United are looking into plans for Old Trafford’s future (Credits: Getty Images)

However, the club have released further updates on their finances to say £120m of the club’s overall debt has been paid off, taking it down to £653.3m.

It means the club’s credit facility is down to £140m, leaving a buffer of £160m in further spending on there should they choose to do so.

While Ratcliffe’s £235m pledge will still likely be used on Old Trafford, the club has decided to use the new cash injection to pay off the credit facility, given it has high interest rates.

United are looking into the future of Old Trafford, and will either refurbish the current stadium to the tune of £1bn or build a new one at around £2bn.

Ratcliffe favours building a new one.

MORE : Sir Jim Ratcliffe set to make major sacrifice to improve Man Utd squad

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