Man Utd take out bumper £140m loan that could be used to fund transfer spree

Manchester United have taken out a £140million loan which could be used to fund their summer transfer business.

The financial impact of the coronavirus is beginning to take its toll on football, with a lack of matchday and commercial income drastically hitting club revenues.

United are not immune to that, and have opted to access funds from their revolving credit facility (RCF) as a precautionary measure.

As reported by The Mail, the £140m cash injection will help the club preserve financial flexibility and maintain liquidity.

Perhaps more crucially from a fan perspective is that United will still be able to invest heavily in their playing squad in the upcoming transfer market.

Executive vice-chairman Ed Woodward previously stated it would not be "business as usual" in the transfer market, though it seems the club are still planning for new arrivals.

A number of big-name players have been linked with a switch to Old Trafford, namely Jadon Sancho, Harry Kane, Jack Grealish and James Maddison.

None of those players will come cheap, but the RCF will enable United to extend their own transfer budget to help land their top targets.

Bank of America have loaned the funds to the club, with full payment due by 2025.

United have not usually had to call on the RCF to boost their transfer kitty in previous summer windows, with its normal use reserved for things like improving club facilities and paying dividends and interest on borrowings.

One concern though could be the club's recent financial figures, which showed United's debt has increased to over £400million, with worse expected to come in figures released over the course of this year.

"These are unprecedented times," Woodward admitted recently. "Clearly, it [coronavirus] has caused significant disruption to our operations, including the postponement of all matches since mid-March and the temporary closure of our retail, catering and visitor facilities at Old Trafford.

"Our third quarter results published today reflect a partial impact that the pandemic has had on the club, while the greater impact will be in the current quarter and likely beyond.

'There are still profound challenges ahead, and for football as a whole, and it is safe to say it will not be business as usual for some time.'

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