Man Utd has been hit by huge interest hikes after a $550 million loan renegotiation

Manchester United have had to agree to a hefty interest rate hike after renegotiating part of their £1bn-plus debt.

United owes $425m (£317m) of their overall debt in bonds due to mature on 25 June 2027.

They have now agreed to borrow $550m (£410m) on new terms, which settles the $425m and gives them a bit more financial flexibility.

The club’s finance chiefs have been reviewing the situation for more than 12 months, knowing they will be unable to match the 3.79% interest on the loan.

United has revealed that it is now done.

However, the new loan is fetching 5.36% interest.

United said the proceeds will be “the outstanding principal amount of the 2027 Notes, together with accrued and unpaid interest” and will be used for “general corporate purposes.”

The move underlines the significant money involved in funding the club in its current form.

In its third quarter accounts, to 31 March 2026, United confirmed net finance costs of £20.3m for the previous three months and £55.7m for the previous nine months, although this was put down to “adverse swings in foreign exchange rates”.

In September 2025, respected football finance blogger Swiss Ramble estimated that United had paid £852m in interest alone since the Glazer family completed their leveraged buy-out in 2005.

Figures from their third quarter release show the club owed £1.29bn at the end of last year.

£317m was part of that debt, and there are additional “liabilities” of more than £500m – most of which are outstanding transfer fee payments.

In addition, United extended the repayment of their $225m (£168m) secured loan, which was due by 6 August 2029, to 10 June 2031.

In March, the club said the interest on the loan was between 1.25% and 1.75% at the Secured Overnight Financing Rate (SOFR), which reflects the cost of borrowing cash overnight.

The deal comes as United officials are still deciding how to fund their new stadium plans.

It has been estimated that a 100,000-capacity estate would cost at least £2 billion, and likely more due to rising global costs of raw materials and labour.

Sources have spoken optimistically to BBC Sport about the possibility of a deal with United-owned landlord Freightliner this summer.

This will allow plans to be drafted and a true nature of the costs involved will begin to emerge.