Manchester United unveiled plans to build a new 100,000-seater stadium on Tuesday.
Following completion of his minority stake in February last year, co-owner Sir Jim Ratcliffe confirmed that it was his preference to build a new stadium and the hope is that it will be ready in five years' time. Conceptual images and scaled models designed by the architect Lord Norman Foster were unveiled at Foster + Partners' headquarters in London.
The stadium will be the centrepiece of the Old Trafford regeneration project that will create more than 90,000 new jobs, more than 17,000 new homes and drive an additional 1.8million visitors annually.
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United chief executive Omar Berrada and chief operating officer Collette Roche were at the launch event in London on Tuesday and conducted a Q&A session with journalists in attendance. Below is a full transcript of what they had to say:
Q: How much costing?
Omar Berrada (OB): "So currently we're looking at about £2billion for the new stadium."
Q: All financed by the club? Or taxpayers?
OB: "We won't be asking for taxpayer money to fund the stadium. But, at the same time, the stadium, the new build, in isolation, does not make sense if there's not an investment in the wider generation project."
Q: Naming rights? Fund stadium yourselves?
OB: "At this stage, all the options are open. We're not closing any doors, so we obviously want the stadium to give us additional revenues for us to be able to invest into the team, and I think that's going to help.
"One of the biggest upsides is to give the best experience to our fans, to be able to accommodate more fans into the stadium. But it is true that the additional revenues will help finance the talent that the fans will see on the pitch."
Q: How does the club go from running out of money to a new £2bn stadium?
OB: "What you heard yesterday [from Ratcliffe on Monday] was about the need to do a cost adjustment. So the way the club was tracking, with all the losses that have been accumulated – more than £300m in the last five years – was not sustainable.
"So all the plans we've been putting in place over the last months really address the short-term issue, which is that the club was losing money. Once we stop losing money, we then put ourselves in the best financial position to continue investing in our team and also to allow us to be able to have the ambition to build a new stadium."
Q: So those things can operate alongside each other?
OB: "Again, what you heard yesterday, and the plans that have been put in place, the goal that we have is to become the most profitable club within the next two years. And we want to do that whilst we continue to invest in our squad. So that's the goal for the next two or three years.
"Once you become profitable, then everything else becomes more manageable and it also allows us to to be able to invest in the future, which is what this stadium is about."
Q: Is the club already one of the most profitable already? Just interest payments and other debts are the problem?
OB: "We have the highest EBITA [earnings before interest, taxes, and amortization] in the world, but we're not profitable when it comes to the operating losses. So we want to become so profitable at EBITA level that we don't incur any operating losses and since then we want to be cash positive."
Q: Arsenal and Spurs weren't competitive while/after building new stadia, is there a danger that you can't deliver a stadium and a world-class team?
OB: "That is a risk. Clearly it's something we want to avoid. We don't want to inhibit our ability to invest in the team, for us to continue being competitive while we are building a new stadium.
"There are various ways around that; one of the things we are looking at is to shorten the construction timelines so we can have a new stadium within five years, that's our ambition. In the meantime, by getting our finances back in order and becoming profitable, we believe that we can be very competitive.
"The big, big benefit that this club has is that it has the biggest fanbase in the world and therefore the ability to be the No.1 in terms of revenues that it generates."
Q: Arsenal and Spurs didn't have debt mountain? Need to restructure debt?
OB: "These are all options we will be looking at."
Q: Is starting this year too ambitious?
Collette Roche (CR): "I think what Jim said is that it's all predicated on planning permission and how quickly the local authority can work. We're looking at ways we can work with them to make it as smooth and quick as possible.
"One of the things we are establishing is a mayoral development corporation, you'll have heard, that gives a lot of rights to speed these things through. You also heard today that Jim mentioned us potentially doing some pre-fabrication. So that means we can do a lot of the enabling works and start to design and build the pieces in advance of having to do anything on the ground in Old Trafford.
"Yes is the short answer, it could be done quite quickly as long as the local council and government supports us in that and moves it forward."
Q: Jim mentioned government getting on board – is that financially?
CR: "As we said at the start, we as a club are going to pay for the new stadium in terms of the bricks and mortar, but we do appreciate there is a lot of enabling work and infrastructure work in and around, and that has always been our understanding. That's why we are working with Andy Burnham and obviously now we've got some support from Rachel Reeves as well to say this is part of the growth agenda.
"They will be supporting the wider infrastructure and we will be making sure that we, as the club, can put the catalyst right in the heart of it."
Q: Naming rights and how would you word it?
CR: "We haven't thought about how we are going to word any naming rights, but it's all on the table at the moment."
OB: "It's all on the table. We think it is quite a unique opportunity in the world of football for such an iconic stadium of the size that we're talking about to be built. So we think we will have an enormous amount of partnership opportunities.
"Ultimately we like brands that can help us to improve the fan experience within the stadium. Whether that integration comes with the stadium naming rights opportunity or not, it needs to be discussed."
Q: Keep Old Trafford within the title?
OB: "It's too early to say at this stage. What we do know is that there is already an enormous amount of interest in big brands wanting to associate their brands with ours and the new stadium."
Q: Have different sponsors for different sections of the stadium?
OB: "Correct. You can have a sponsor for the fan zone and sponsors for certain hospitality areas."
Q: There were cheaper options but have you gone with short-term risk for long-term gain?
OB: "That's right. We want a stadium that's befitting of the stature and history of this club. Old Trafford is 115-years-old, so we want to build a stadium that is going to last for another 100 years."
CR: "If you listen to what Jim said, we feel now that the government has backed and wants to really invest in that area. We believe that the best way to get the value and all of the numbers in terms of the £7b GVA (gross added value) for the local economy is through having a new stadium.
"Part of us doing this is around the benefit for the wider region and not just Manchester United, and that's been really clear since we were in the SoFi."
Q: What is the plan for current stadium?
OB: "We haven't made a decision on it yet. It's true that at some point there was some thinking either keeping it as it is or reducing the capacity to 25 or 30,000 as somewhere where the women's team could play, the youth teams could play. I think given our ambition to build what you saw today, maybe that needs to be re-visited.
"Again, our ambition is for the women's team to have a big enough fan base that they're playing in the main stadium, not in a smaller capacity stadium."
Q: So it's still an option the current stadium could stay there?
OB: "I'd say it's unlikely."
Q: Is it feasible to have mini Old Trafford like CFA (City Football Academy)?
OB: "It's not off the table. It's feasible but we have to find the best ways to finance a new stadium and, to Collette's point, we're thinking about this in the context of how can it benefit the wider regeneration project. If we feel the space where Old Trafford currently is can be used in a different way whilst preserving the history of Old Trafford then we'll explore it."
Q: Forecasts for matchday revenue? Double?
OB: "We're a PLC so we have to be very careful about giving any revenue forecasts but the initial business planning shows that we can increase our EBITA significantly, potentially increase it to £120m-£130m."
Q: £2bn just for stadium alone?
OB: "£2bn will be for the stadium plus the club areas. For example, fan zones, megastore."
Q: Estimate for entire project?
CR: "So we don't know is the answer. You've just said, what are we going to do with the stadium? The idea now would be we've done the outline stadium master plan so we know broadly where that line will be drawn. We're also working the council about how much can be used for commercial, for housing because it will be mixed use.
"Out of the back of that, we'll start to say, how much is that going to cost. Some of that land will be owned by us but some of that land will be owned be other people."
Q: Why £2bn, it's very expensive?
OB: "Since Spurs built their stadium and Real Madrid, there has been a high inflation. Energy prices have gone up. Inflation has impacted all areas of the economy. That's been factored into the cost of the stadium."
Q: How do you bring the women's team in? Currently at Leigh?
CR: "When we've looked at the designs, the great thing about having that type of stadium is that it can be creative for different venues. If you had a concert you wouldn't necessarily be filling the higher sides of the goal. There's technology now that can still give you the sense of a smaller, intimidating, great atmospheric stadium which we think could be befitting the women's team with a smaller crowd.
"That's the type of things we're looking at. As well as technology for the pitch. The pitch needs to be in mint condition for the men's team and the women's team. We're looking at technology that will allow us to use it for the men's team and the women's team."
OB: "In the meantime what we want to do is grow our fanbase for the women's team so we can have more games at Old Trafford – we've got one against City in early May – but we want to grow the fanbase so we can have attendances of 40-50,000."
Q: Non football events – concerts etc?
OB: "We are still working through the financial side of the planning. It's not very clear at this stage about the cost of having a retractable pitch and everything that comes with it is financially justifiable."
Q: Are you confident you'd fill it with 25,000 extra fans?
CR: "Yes. At the moment our season ticket waiting list is 170,000, even now with the current situation we are in, we are selling out. We've put a lot of policies in place that allow our members to access tickets as well. We're really confident we've got the demand that we need."
Q: Price increases – ticket prices in new stadium?
OB: "For the current stadium, we are still working through what we are going to do for next season (re season tickets). Jim gave you an idea of the direction of travel but we are not ready to announce it yet. The big advantage of increasing the capacity to 100,000 and as you heard the demand is quite high – is that we'll be able to have more flexibility to accommodate our core fans as well as fans who can maybe only come twice a season. And we'll be able to offer a range of products."
Q: 76,000 at Old Trafford right to the bitter end?
CR: "That's a really good point, and that's what we are working through at the moment. The build will be done in a phased way to allow that to be the last part but circulation is critical from a safety perspective and we wouldn't be able to operate that stadium and build the other one without making sure that's in place. But it's feasible and that's why we were able to show the designs at this early stage."
Q: 50,000 for six months?
CR: "Not necessarily, no."
Q: Prefab Sprout – could it not be done in Manchester?
CR: "Potentially, there's lots of options. We did the Oxford report and that's given us some really good insight into how quickly we can do things. I don't think a decision has been made – Jim mentioned the Ineos experience, but that's his ineos experience. We've not made a decision but this just shows what's possible, more about reducing the timescale, which is really important for our fans and us."
Q: When will you find out re Government involvement?
CR: "That conversation is ongoing. We held a Taskforce meeting, Omar and I, last week. All the local councils were there and Andy Burnham and so forth. We are going to Cannes today with Andy and we are starting to establish what this corporation looks like. They have statutory powers to set up that organisation.
"That will oversee the whole redevelopment of the area. It is that vehicle that fast tracks some of the planning and the enabling works. That conversation is a constant one and is ongoing."
Q: Compulsory purchase orders within their power?
CR: "They can do that but that takes time, so I am not suggesting that is the route we want to go down. We are looking and working with all the local people around the area to try and build a plan that works for them and us. Up to now, all the local landholders have been positive and have engaged with us about how we can make it happen."
Q: Do you have to put this out to tender?
CR: "Fosters + Partners have been appointed to the stadium district. That is why it is concept design at the moment. We have not gone into the design around the stadium. We will be establishing what that looks like. I am sure Foster + Partners will be a big part of that but we want to make sure we get best value for money. That is front and foremost as well as making sure it is iconic, as you have seen today."
Q: So there could be a tendering process or will shareholders demand a tendering process?
OB: "There could be. We will follow the right process. We are a PLC, so we will make sure we follow the due processes before we make the final appointment. As Collette said, at the moment this is at a conceptual level."
Q: Is it fair to assume this has to impact recruitment and performance on the pitch?
OB: "I wouldn't agree with that. We are trying to put ourselves in the best financial position to be able to invest in our team and making it better. We are not necessarily going to be investing significant amounts. But that is going to be out of choice because we want to manage our football costs more efficiently. Our number one goal is to get our teams winning and to get the men's team competing for all the titles consistently. We are not going to deviate from that."
Q: Is it fair to say you are targeting the 2030-31 season to open?
OB: "Yes."
Q: Looking at 5-10% ticket price rises? How much have the protests come into your thinking about what you do next season?
OB: "It does come into our thinking. We have spent a lot of time consulting with fan groups. They have been very robust with their suggestions, which we appreciate and have taken on board. It has been a very constructive process and has helped frame our thinking about where we are going to land on pricing."
Q: It is quite sobering to see headlines about Manchester United going bust. Is it too bold to say this can unlock the future for the club to be one of the richest in the world?
OB: "It is clear that our ambition is to have the best team in the world with the best stadium and most iconic stadium in the world. We want to have some of the best players playing at Old Trafford in front of our fans. Our fans deserve to see a team that they can be proud of and can connect with and to be able to do that in an amazing venue like the one we have shown today."
Q: Do you think that will be with Ruben in charge?
OB: "We'd love to open the new stadium with Ruben as a coach."
Q: Protests won't disappear unless you substantially improve your performance. Which from the outlook from what you're saying today, from what Jim said yesterday, is not realistic in the short term...
OB: "Well, I mean, the first thing I would say is our fans have been brilliant. This is one thing since I've joined the club that I've found absolutely fascinating is the way our fans consistently show up to the games and support Ruben and the players. And I think that's absolutely amazing.
"In terms of your question about the short term, everything that we're doing and a lot of these decisions are difficult and we hate to see people losing their jobs. We're doing it because we want to put ourselves in the best position possible to invest into the squad because we want the squad to start winning and we want the squad to start performing a lot better so that our fans again can enjoy their team and see it, you know, win and play good football. So that's our number one focus really, and in the very short term, we want to be able to get to that position as quickly as we can."
Q: Omar, on that, obviously the stadium project is ambitious, but you said you want to have the best team out there, the best players in the world... What are you guys doing recruitment wise in terms of getting the analytics right and that department really on par with your rivals or even better than your rivals to deliver that?
OB: "Yes, so on the technical side, we have a coach that has a very clear identity and very clear idea of how he wants the team to play. Then we have Jason Wilcox as a technical director who works extremely closely with Ruben and they're very aligned on what we need to do in terms of recruitment.
"Then there are certain areas that need to be improved. Data analytics is one of them. And again, it's at the top of our list of the areas that we want to invest in to get better at. Because as you all know, to improve, to be really good at recruitment, you need the very good technical people that are complimented by very good data analytics insights."
Q: Are you guys thinking of enlisting the services of company to do that? Or are you thinking of building an in-house analytics team at United?
OB: "It's a great question, but I don't have an answer to that yet."
Q: Risk that Ruben's style is so different to the previous ones?
OB: "I think it's riskier if you have a coach that doesn't have a clear idea of how he wants to play. And with Ruben we don't see that risk. And when it comes to our recruitment strategy without commenting too much, but the idea we have is to be able to bring in versatile players that can be adaptable to multiple systems.
"And ultimately Ruben himself has said it, it's not about the 3-4-3 tactical formation, it's about an idea, a concept of how he wants to see the team playing. He wants to see the team playing more on the front foot, more of a possession, attacking-based style of football. So for that, you need players that can play in multiple positions that can adapt to that vision that Ruben has. And this is what we're going try to do over the next years in in our recruitment."
Q: Do you have two very clear and different sort of transferring recruitment strategies for the summer? One based on you having Champions League football if you win the Europa League and one with no European football? And, and how different if there are to those two plans?
OB: "There's no doubt that if we qualify to the Champions League, we will have more revenues and we'll have more capacity to invest in the team. But we are putting in place various financial measures to allow us to go and invest at the summer, even if we're outside of Europe."
Q: If you're outside of Europe though, is the reality you will have to compromise more?
OB: "I can answer that question in specifics, but ultimately what we want to do is to be more efficient in our investment into the squad. So just because we'll have more revenues to invest if we're in the Champions League, it doesn't mean we're going to go and over-invest. We need to be cautious and, and we need to try to make as many good decisions as we can in recruitment. And also when it comes to sales, we will do it purely on the basis of whether it helps improve the team or not, not for financial reasons."
Q: Can I just ask about the football leadership team? Obviously you don't need to go into Dan Ashworth in any detail, but the sporting director role, I know Jason Wilcox has taken more responsibility. What's happening with the leadership team there now?
OB: "Yes, so as you say, Jason has taken on more responsibility. We also have Collette who is managing the football operation side of things. So for now we have no plans to make any further changes.
"We're quite happy with the way Jason has taken on these additional responsibilities and Collette has an enormous amount of management experience and she's helping manage and lead the operation side."
