Manchester United’s ambitious plans to build a new 100,000-seater stadium has been called into question by a football finance expert.
Fans were left drooling after images surfaced showing what the £2billion state-of-the-art arena could look like upon completion.
Last February, the club’s minority shareholders, fronted by Ineos chairman Sir Jim Ratcliffe, put forward plans to build a new stadium close to Old Trafford under the tagline ‘Wembley of the North.’
Since then, plans have gathered momentum with Ratcliffe having created a taskforce consisting of former captain Gary Neville, Greater Manchester Mayor Andy Burnham, and Trafford Council leader Sara Todd.
This week, it was revealed that the plans had crucially gained unanimous support from Trafford Council officers.
Officials say the plans are likely to provide over 90,000 jobs, 15,000 new homes and £7.3bn to the economy with a final decision on the plans expected by the end of the season.
But despite the optimism currently surrounding the project, football finance expert Stefan Borson has expressed his concerns over whether the club has the means to deliver such plans.
“There’s a question around the funding of it,” Borson told talkSPORT’s YouTube show titled ‘How Football Works’.
“It’s all very well talking about Ineos but they are only a 20 per cent shareholder in Manchester United.
“They are not going to put a whole load of money in unless it dilutes the shares of the Glazers.
He added: “It’s not clear yet whether the Glazers are going to be prepared to accept equity investment into Manchester United to then invest in the stadium that will then dilute the Glazers or whether it’s going to have to be even more debt.
“Remember Manchester United has considerable debt already, so to layer on top of it – potentially £3bn and it’s not clear it can be done on this very tight £2bn budget.
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“Is it possible United can get funding as an organisation for that amount of money? I think it’s going to be a challenge.
“There’s still big issues regarding the funding of the infrastructure build above and beyond the government intervention which I think will be an assist but not the complete answer.”
Chancellor Rachel Reeves this week revealed that she will champion the regeneration project proposed by Man United’s stadium task force.
Meanwhile, Mayor Burnham has compared the ambitious proposals to that of the London 2012 Olympics.
“With our devolved powers we’re mobilising the whole Greater Manchester system to lock in growth for the next decade and reap the rewards for our city-region and UK plc,” said Burnham.
“The project around Old Trafford represents the biggest opportunity for urban regeneration this country has seen since London 2012 and is a key part of our 10-year plan to turbocharge growth across Greater Manchester.
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“We look forward to working with the Government on moving freight away from the site around Old Trafford to new locations to open up capacity for our rail network and unlock massive regeneration potential – delivering benefits across the whole of the North.”
Manchester United CEO Omar Berrada added: “The delivery of a world-class stadium can be the catalyst for major regeneration of an area of Greater Manchester which requires new investment to thrive again.
“We cannot achieve that wider aim on our own, which is why we welcome the announcement by the Chancellor and the ongoing support of the Mayor of Greater Manchester and Trafford Council.
“If we work together, there is a once-in-a-lifetime opportunity to create a landmark project around Old Trafford that the whole region can be proud of.”
