Kieran Maguire: Man United have ‘£100m’ war chest ready to go after official confirmation
Man United have a £100million war chest in the form of a credit facility that they could use whenever they please.
So says finance guru Kieran Maguire, speaking exclusively to Football Insider about United’s second-quarter results for 2021-22.
The Red Devils lost £5.4m for the three months ended 31 December 2021, with revenues totalling £185.4m.
Net debt rose by £40m to £495m over the 12 months leading up to the cut-off date, as per the figures published last Tuesday (1 March).
But Maguire explains that debt in and of itself is not a problem for United.
“Net debt is the total that you owe to financial institutions minus any cash you have in the bank,” he told Football Insider‘s Adam Williams.
“Man United are paying big wages. They have made payments in respect of transfer fees as well.
“We’re comparing to this time last year, and that includes the 2020-21 season taking place behind closed doors.
“Debt is not a problem. It’s meeting your debt payments when they are due which is the challenge for any business.
“United have interest-only loans from the banks, so that’s not a problem.
“Also, they have undrawn credit facilities of £100m. That means they have an overdraft facility they haven’t yet used.
“If they need to go out and spend money, they have the capacity to do so. They have future-proofed themselves.”
United fell outside the top four after yesterday’s (6 March) 4-1 defeat to Man City.
Ralf Rangnick’s side are next in action against Tottenham on Saturday (12 March).
In other news, pundit “wowed” by potential Man United deal for Ruben Neves after talks update.