Manchester United have taken out a £140m loan that could be used to fund new arrivals in the summer transfer window, as they look to beat Chelsea in the market for Jadon Sancho.
The two Premier League rivals are fighting fiercely for the services of the 20-year-old Borussia Dortmund star, in a transfer that could see the fee exceed £100m.
However, the coronavirus crisis has hit football hard and the transfer window is expected to look completely different when the sport returns.
With no fans in the stadiums when the 2019/20 season is completed and it's likely the same sort of restrictions will remain for at least the start of the 2020-21 campaign, which will reduce the revenue streams for Premier League clubs.
United, therefore, have drawn £140m of their £150m syndicated revolving credit facility (RCF) in order to spend some cash in the next transfer window, The Daily Mail reports.
The club said it precautionarily drew funds from the RCF to increase its cash position, preserve financial flexibility and maintain liquidity during the crisis.
The secured RCF, which matures in April 2025, pays a margin ranging from 125bp to 175bp over Libor/Euribor, depending on leverage. Bank of America is facility agent and security trustee on the revolver.
Historically the RCF has been undrawn during the summer transfer window, but if the club looked to buy players with values substantially more than the players being sold, it could use cash from the facility to meet its needs.
Manchester United's main cash requirements stem from the payment of transfer fees, capital expenditure for the improvement of facilities at Old Trafford and the club's training complex, payment of interest on borrowings, employee benefit expenses, and the payment of dividends.
This money could now be used to fund a significant rebuild for Ole Gunnar Solskjaer's side, who have been linked with a wealth of additions in the next transfer window.
As well as Sancho, United are also keen on Aston Villa captain Jack Grealish and Birmingham City talent Jude Bellingham, while there have also been links with Leicester City's James Maddison.
