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Investing.com -- Manchester United Plc (NYSE:MANU) announced plans this week for a new 100,000-seater stadium, but now the challenge is to secure the necessary funding. The cost of the new stadium is estimated at £2 billion ($2.6 billion), and the club is considering various financing options.
According to Bloomberg News, banks might be able to provide between £1 billion to £1.5 billion of debt. The remaining amount might need to be covered by equity.
Some believe that Manchester United, being a globally recognized football team, should be able to raise the capital it needs. There’s also a possibility of obtaining funding from a UK government that’s eager to support projects stimulating economic growth.
Omar Berrada, CEO of Manchester United, stated that all financing options would be considered. Despite the club’s recent struggles on the field and an existing debt of at least £1 billion, it is expected that there won’t be a shortage of financiers willing to assist due to the club’s global standing.
Goldman Sachs Group Inc (NYSE:GS). and JPMorgan Chase & Co. (NYSE:JPM) are likely to be involved in finding funding solutions, the reported added. These banks assisted co-owner Jim Ratcliffe in securing control of the club last year.
Bank of America Corp (NYSE:BAC)., an existing lender to the club and financier of new stadiums for teams like Tottenham Hotspur and Real Madrid, is also a probable candidate.
Manchester United has not yet formally approached lenders.
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