Manchester United, one of Europe’s – indeed world’s – elite clubs announced on Sunday it plans to build a 100,000-seat stadium at a cost of £2 billion (2.5 billion) as the club looks to diversify its income streams.

Consequently, the United Kingdom government announced on Sunday it will piggyback on the project, designated as Greater Manchester regeneration project to modernise transport infrastructure, business, housing and other entertainment facilities projected to generate close to 100,000 permanent jobs.

Should Manchester United decide to build a new ground, it has been estimated that it would take around six years to complete.

According to TalkSport, the Red Devils planned to build a new state-of-the-art Old Trafford in a staggering £2 billion project, which Manchester United co-owner Sir Jim Ratcliffe has made no secret in the past of his desire to build a ‘Wembley of the North’.

In February 2024, the club instead stated they were looking to improve the current stadium after plans to regenerate the area were revealed, though they are now weighing up a new ground entirely. Now, their proposal has been backed by the government, with the Chancellor of the Exchequer – Rachel Reeves – championing the regeneration project.

The announcement coincides with the struggles of three East African government – Kenya, Uganda and Tanzania – to build stadium to host African Nations Championship (CHAN). After nearly three years of pussyfooting, the three government missed the February 2025 deadline for the commencement of the tournament, which has been postponed to August 2025.

The £2 billion budget translates to Ksh323 billion (the strongest currency in the region< which is enough to build more than 20 stadia similar to, or better than the facilities lined up for the continental elite tournament.

The Associated Press reports that Manchester United has received support from the British government for the club’s project to regenerate the area around its Old Trafford stadium. Citing statement by Britain’s Treasury boss Rachel Reeves, the agency reports that the UK government is championing the Old Trafford project as “a shining example” of its plans to promote economic growth.

Sports outlet, The Athletic, says in its account of the project that the government support for the community club is “a major boost in plans for the redevelopment of Old Trafford with UK Chancellor Rachel Reeves throwing her support behind the project.”

Reeves says Manchester United’s ambition to create a community hub around the stadium is a “shining example of the bold pro-development model that will drive growth across the region” – in a sign the government is ready to help enable some form of financial backing.

While the Red Devils would be expected to pay for an upgraded stadium – with Sir Jim Ratcliffe’s preference for a new 100,000-capacity build – a ‘development corporation’ could be set up to assist on the surrounding areas. The club believe a re-energised Trafford Park has the potential to deliver an additional £7.3 billion ($9.7 billion) to the local economy and 90,000 job opportunities.

In the AP report, the heart of the project is a world-leading new venue, by either redeveloping the current stadium to increase the capacity to 87,000 or building a new stadium that could hold 100,000 fans.

United welcomed the government’s support, with CEO Omar Berrada describing the project as “once-in-a-lifetime opportunity.”

“The delivery of a world-class stadium can be the catalyst for major regeneration of an area of Greater Manchester, which requires new investment to thrive again,” Berrada said in a statement.

While United would take responsibility for the stadium development, support from public bodies would be needed to unlock the wider regeneration opportunity, the club said. This would include improved transport infrastructure and housing around Old Trafford.

Sunday’s announcement by the Treasury on the government website heralding “bold reforms” to the country’s planning system, according to The Athletic, read: “The Chancellor also revealed today that she is championing a regeneration project around Old Trafford in Manchester that will see new housing, commercial and public space as a shining example of the bold pro-development model that will drive growth across the region, with authorities exploring setting up a mayoral development corporation body to redevelop the area.”

Reeves later posted on X: “When it comes to planning and infrastructure, for too long the answer has been ‘no’. We’re doing things differently. By removing the blockers that chokehold growth, we’ll get Britain building and our economy growing for working people.”

Omar Berrada, United’s chief executive, added, “The delivery of a world-class stadium can be the catalyst for major regeneration of an area of Greater Manchester which requires new investment to thrive again. We cannot achieve that wider aim on our own, which is why we welcome the announcement by the Chancellor and the ongoing support of the Mayor of Greater Manchester and Trafford Council.

“If we work together, there is a once-in-a-lifetime opportunity to create a landmark project around Old Trafford that the whole region can be proud of.”

United’s regeneration taskforce has been examining the feasibility of reshaping Old Trafford, either through a new stadium or developing the current site and published an options report a fortnight ago. United are expected to make a decision at the end of the season on which route to go down – with an upgraded Old Trafford projected at 87,000 capacity.

However, a fresh construction on adjacent land already owned by United is the desire of Ratcliffe, but is set to cost at least £2 billion and there is still a huge question of how it would be funded. But positivity from the government to support the wider project is encouraging from a Manchester United perspective.

Prime Minister Keir Starmer’s Labour government has an agenda to reform planning regulations, making such major redevelopments easier to achieve. Development corporations are viewed as a good way to finance large-scale projects, although it is as yet unclear how much of the public purse would be required for the regeneration around Old Trafford.

Mayor of Greater Manchester Andy Burnham, a member of the Manchester United taskforce, has said: “These proposals offer the biggest opportunity for urban regeneration this country has seen since London 2012 and are an important part of our 10-year plan to turbocharge growth not only around Old Trafford but across Greater Manchester.

“Our city-region is in a unique position. We are driving growth faster than the UK average, attracting more investment through innovative partnerships, and we have developed an innovative new mechanism to deliver the homes, jobs, and infrastructure that we need to lock in those benefits for years to come,” Burnham says.

It has been claimed that such a regeneration at Trafford Park could boost the UK economy by as much as £7.3 billion. The Trafford Park complex would feature the prospect of a major transport hub, along with premises dedicated to sports, residential, entertainment, business and an education campus.

Meanwhile the Old Trafford Regeneration Task Force has claimed that their plans would provide more than 90,000 employment opportunities. The UK Treasury has since described United’s plans as a ‘shining example of the bold pro-development model that will drive growth across the region,’” TalkSport says.

In a statement on Sunday morning, United, who are working with Trafford Council and the Greater Manchester Combined Authority, welcomed government support.

Berrada, the club CEO, said, “The delivery of a world-class stadium can be the catalyst for major regeneration of an area of Greater Manchester, which requires new investment to thrive again. We cannot achieve that wider aim on our own, which is why we welcome the announcement by the Chancellor and the ongoing support of the Mayor of Greater Manchester and Trafford Council.

He added, “With our devolved powers we’re mobilising the whole Greater Manchester system to lock in growth for the next decade and reap the rewards for our city-region and UK plc.

“The project around Old Trafford represents the biggest opportunity for urban regeneration this country has seen since London 2012 and is a key part of our ten-year plan to turbocharge growth across Greater Manchester.

“We look forward to working with the Government on moving freight away from the site around Old Trafford to new locations to open up capacity for our rail network and unlock massive regeneration potential – delivering benefits across the whole of the North.”

Whereas building an entirely new ground would allow them to welcome 100,000 fans, a final decision will be made before August. United have played at Old Trafford for 114 years after the stadium was opened in 1910.

• A Tell report