Manchester United have a maxed out ‘credit card’.
It would be a disaster if the Glazers stayed at Manchester United. The debt will increase rather than get cleared and Erik ten Hag won’t get the financial backing he needs in the transfer market.
According to The Athletic, a loan of £200 million was taken out last simmer, from the “revolving credit facility” agreed with Bank of America Securities.
That money was used to complete signings and it must be paid back in June to permit further spending.
The Glazers will plan to use this credit card again in the summer to make new signings and it goes without saying that Ten Hag will need to sell a number of players to raise funds.
David Ornstein and Laurie Whitwell report: “United feel they are now able to repay this due to income coming in the back end of the season from sponsorship, broadcast and season tickets.
“The sim that needs paying off is actually £206.2m, given the interest added on.
“But the balance is not likely to be zero for too long because the players United recruit in the summer window would be bought using the same mechanism if the Glazers stay.”
With the credit limit being £300m, which likely means Ten Hag has approximately £90m to spend in the summer unless the payment due to paid before June.
This explains why United had no budget for spending in January.
All of this could change if a takeover is successful in the coming months.
Only time will tell.
Potential investors will presumably believe that they can do much better than the current owners, but it’s very difficult to justify the Glazers’ reported £6 billion asking price.
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