MANCHESTER, England (AP) — Manchester United wants to build the largest stadium in the world. They also want to have the best football squad. Can the most successful team in England do both things?
The ambitious plans for a stadium costing £2 billion (US$2.6 billion) with a capacity for 100,000 seats come at a time when United is burdened with hundreds of millions of dollars in debt and is subject to brutal cost-cutting measures to avoid running out of cash before the end of the year.
“The situation is equally complicated on the field. The team with the most titles in the English league, with 20 championships, is in the lower half of the Premier League, despite having spent around $2 billion on players in the 12 years since they last won the title.”
“Our number one goal is to make our teams win and have the men’s team compete for all titles consistently. We are not going to deviate from that,” stated United’s CEO, Omar Berrada.
Bad omens?
Arsenal’s last league title dates back to the same year they began construction on their new home, the Emirates Stadium, in 2004. In the following years, they witnessed the dissolution of their so-called “Invincible” team, which included Thierry Henry, and have struggled to sign top players.
Arsenal moved to the Emirates in 2006 and the wait for their first title at the stadium continues.
United starts from a much lower base than Arsenal had, with Ruben Amorim’s team in 14th place in the standings and with a high probability of registering their worst result in the Premier League. The squad that Amorim inherited from former coach Erik ten Hag does not fit his system, and it is likely that a restructuring will be needed at the end of the season.
After having spent around 500 million pounds on players (646 million dollars) in the last three years, money is tight at a time when United has warned about the dangers of breaking the league’s profit and sustainability rules, which could result in points deductions.
“We are trying to put ourselves in the best financial position to be able to invest in our team and improve it,” said Berrada. "We are not necessarily going to invest significant amounts. But that will be by choice, because we want to manage our football costs more efficiently."
Bad business
The problem with United since former manager Alex Ferguson retired in 2013 has been spending too much money on players who have not delivered. Recent examples would be Antony and Jadon Sancho, signed for a combined fee of 155 million pounds (200 million dollars) and are currently both on loan.
Jim Ratcliffe, co-owner of United, was critical of the club’s business when in an interview with the BBC this week he said that some players “are not good enough and some are probably overpaid”.
United may have to adopt the strategy of a team like Brighton, which has made an art of identifying emerging players before selling them for big profits.
There are already examples of United investing in promises. Teenagers Chido Obi and Ayden Heaven were signed after training in Arsenal’s academy. Patrick Dorgu, 20 years old, came cheap (32.6 million dollars) from Lecce in January.
Cost-cutting
In January, United said it had lost over 300 million pounds (371 million dollars) in the last three years. Its latest accounts showed it had 650 million dollars in debt.
Ratcliffe said this week that United was about to run out of money by the end of the year if it wasn’t for the cost-cutting measures implemented.
These have included cuts of up to 450 jobs. Even Ferguson did not escape the measures and his lucrative role as ambassador will also be eliminated at the end of the season.
In addition, Manchester United increased the price of their cheapest tickets to 66 pounds (81 dollars) halfway through the season, up from 40 pounds (49 dollars).
“Our goal is to become the most profitable club in the next two years,” Berrada said. “Once you become profitable, everything else becomes more manageable and it also allows us to invest in the future, which is what this stadium is all about.”
United’s continuous failure on the field does not help their cause. Missing out on qualifying for the Champions League costs around $50 million in revenue compared to the Europa League. Not qualifying for any European tournament has a cost of around $100 million.
A bright future?
A state-of-the-art stadium, like the one presented by Manchester United, could be completed for the 2030-31 season.
This new venue would be built next to Old Trafford, which would mean destroying one of the most iconic stadiums in the world.
Ratcliffe says that United needs a stadium that matches its status as one of the most popular teams in the world.
But, with finances being so closely monitored, will United be able to build a team worthy of the stadium?