Man City’s Financial Scandal Explained: What It Means For Manchester United’s Debt And Spending

The Premier League's ruling against Manchester City has put the finances of both Manchester clubs under renewed scrutiny.

A league panel found that Manchester City's income had been overstated by more than £830 million. The finding relates to the way money provided by the club's owners was recorded as sponsorship income over a number of years.

The verdict came days after Manchester United published their latest financial filing, covering the year ending 30 June 2026. The accounts showed that United paid £37 million in interest during the year, compared with £34 million the previous year.

Football finance blogger Swiss Ramble estimates that Manchester United's net interest payments since the Glazer family's leveraged takeover in 2005 have reached £852 million.

The two clubs have therefore arrived at the current financial debate from very different directions. Manchester City have faced scrutiny over how income was recorded, while Manchester United continue to carry substantial debt and the cost of servicing it.

How much debt does Manchester United have?

United's latest accounts show that the club borrowed a further £90 million, taking their total debt to £1.15 billion.

The figure was £667 million in the accounts to June 2021.

The club also had £375 million in transfer-related debt before 30 June, of which £218 million is due by 30 June 2027.

Since 30 June, United have committed £191.7 million to new players and associated costs. The spending includes Carlos Baleba, Andrey Santos and Youri Tielemans, as well as academy players including England youth international Tynan Thompson. Those payments are due over the next five years.

United could also have to make a further £122.8 million in contract payments if players they have already signed meet agreed performance targets.

As part of a debt restructuring in June, the club added $125 million, or £94.36 million, to its main debt.

United also confirmed on 23 September that £63.5 million had been spent on land for a proposed new stadium. The funding model for the project has yet to be determined.

What is Manchester United's financial strategy?

Manchester United chief executive Omar Berrada said in a statement that the club intend to maintain financial discipline.

"While these results confirm that we are on the right trajectory, we will continue to take a disciplined approach to ensure our finances remain sustainable."

Berrada made the comments after United finished third in the Premier League and secured a return to the Champions League following a two-year absence.

The club reported record revenue of £677.6 million and has projected revenue of up to £760 million for the 2026-27 financial year.

United's wage bill was £313 million in 2024-25, the fifth-highest in the Premier League. It fell to £302 million in 2025-26, when the club did not have European football.

Their wages-to-turnover ratio stood at 45%, the best figure recorded by a Premier League club last season.

Why are United's player sales important?

United's transfer spending has to be considered alongside their ability to generate income through player sales.

The club spent £148 million during the latest summer transfer window. By 1 September, however, they had generated only £47 million from player sales, placing them 11th in the Premier League.

Among the traditional 'big six' clubs, only Liverpool generated less.

United's ability to command significant fees for departing players has also been limited in recent years.

Since Romelu Lukaku's £74 million move to Inter Milan in 2019, United have received more than £25 million for only four players: Mason Greenwood, Scott McTominay, Rasmus Hojlund and Alejandro Garnacho.

Several younger players left during the latest window. Radek Vitek joined Middlesbrough and Toby Collyer moved to West Brom, while Tyler Fredricson and James Overy also departed.

The deals involving those young players included sell-on and buy-back clauses, allowing United to retain potential future financial benefits from the transfers.

What do Man United's ownership rules mean?

Manchester United's current debt position is also linked to the club's 2005 takeover by the Glazer family, which was structured as a leveraged buyout.

Premier League clubs voted in June 2023 to limit future leveraged buyouts to around 65% of a club's value. The change followed ALK Capital's takeover of Burnley in December 2020.

United's debt has remained a significant part of the club's financial structure since the Glazer takeover, with interest payments adding to the overall cost.

Why does Champions League football matter to United?

European competition has a direct impact on United's finances.

The club received £80 million in prize money after reaching the Champions League quarter-finals in 2017-18.

In 2024-25, United received £31 million for reaching the Europa League final.

Their Adidas shirt agreement also contains a £10 million annual reduction if the club fail to qualify for the Champions League.

After finishing third in the Premier League, United secured a return to Europe's top club competition for 2026-27.

How does Manchester City's spending fit into the picture?

Manchester City's financial situation is different.

The Premier League panel found that the club's income had been overstated by more than £830 million. The finding concerns sponsorship income recorded by the club over a number of years.

City's financial resources have also been reflected in their record on the pitch.

Under Pep Guardiola, they have won six Premier League titles in seven years, including the 2017-18 campaign when they became the first side to reach 100 points.

However, the margins in several of those title races were narrow.

Liverpool finished one point behind City on two occasions during Jurgen Klopp's tenure. Arsenal also challenged City closely in subsequent title races before eventually winning the Premier League.

City's first Premier League title during the modern era was secured on goal difference.

How are Manchester City's and Manchester United's financial stories different?

The two clubs' financial positions involve different issues.

Manchester City's case centres on the Premier League panel's finding concerning more than £830 million in overstated income and the recording of sponsorship revenue.

Manchester United's accounts, meanwhile, show £1.15 billion in total debt, £37 million in interest payments for the latest financial year and an estimated £852 million in net interest payments since the 2005 leveraged takeover, according to Swiss Ramble.

United are also managing transfer obligations, wages and expenditure on land for a proposed new stadium while seeking to maintain Champions League-level revenues.