
Manchester United have brought up the idea of selling the Old Trafford naming rights as a way to increase funds to refurbish their current stadium or potentially build a new one.
According to The Athletic, United have held talks with major financial institutions such as the Bank of America exploring possible funding options to raise the capital required to cover a potentially costly project. However, both the club and the Bank of America have not made any comment about any collaboration with no final decision made yet.
Since Sir Jim Ratcliffe took operational control after acquiring just over a quarter of Manchester United, $227.7 million (£120 million) of his $451.6 million (£238 million) cash injection into the club has been used to pay down money on United’s revolving credit facility where originally it was supposed to go towards infrastructure.
It’s already been well-documented the amount of debt Manchester United is currently in; with the club trying to quickly sort out solutions to generate more income such as increasing their season tickets for the 2024/25 season by five per cent and deliberating whether to increase their current ticket prices moving forward. But if a refurbished Old Trafford or a new stadium came to fruition, would the club or INEOS, the company owned by Ratcliffe, take on the fresh debt that comes with it?
If the stadium were to be refurbished, a potential option which could happen that would allow the club to retain the Old Trafford name is to find an associated partner. For example, England’s national team stadium is called Wembley Stadium, connected by EE, where it’s reported the network provider pays $18.9 million (£10 million) per year. A similar approach to this has seen teams retain their traditional stadium names with a sponsor attached to it such as FC Barcelona’s Spotify Camp Nou.
If a complete rebuild were to be the case, The Athletic have reported that Manchester United are open to selling the name where they would hope to obtain a large fee.
However, the club have not yet revealed how they would fund a refurbishment or a new build with the Glazer family showing no inclination to self-fund United’s ambitions while Ratcliffe and INEOS would seek a mixture of public funds and private partners or debt to carry out the work.
Old Trafford has been the name of Manchester United’s stadium for 114 years and the club has never come to the point of selling the stadium’s naming rights. But we have seen Premier League sides use major brand names as the name of their stadiums such as Arsenal’s Emirates Stadium and Manchester City’s Etihad Stadium. In both of these cases, the airlines acquired the rights to not only the stadium’s names but also the front-of-shirt sponsorship.
But after a mixed season- where the club finished eighth in the league but was able to secure a place in the UEFA Europa League next season after beating Manchester City in the FA Cup final, Manchester United will hope their performances on the field improve this upcoming season to help relieve some of the financial stress they are currently holding. But if the club wants to increase funds by selling something as historic as the Old Trafford name, expect a lot of backlash from not only United fans but also football fans alike who have witnessed a rich history of a stadium that has seen so much success as the home of Manchester United.