so, this RCF. what do we know? we know there was a facility of up to £150m, of which the club has already drawn down £140m. the club claim this is "as a precaution", bullshit.

the RCF when drawn down at this level will attract interest of around 1.5%, so on an annualised basis that would be interest on £140m of c£2m per annum. now, unless you had an urgent need for the cash you wouldn't touch that and fritter away £2m "as a precaution".

unless, of course, you're Ed Woodward who seems to manage his cash flows on a whim, and has no capability of cash flow forecasting - as seen by previous transfer deals, both their timing, their value, and their structure.

it's important to remember this facility is in place til 2025, and there is no urgency to draw it down before the facility is removed. therefore any normal business would draw this down as and when needed. £10m for day to day operations here, £50m for a transfer there... etc

so take a look at Uniteds latest Cash Flow statement. what it tells you is: over the last 9 months, Cash Generated From Operations (regular, day to day, profits) is not even enough to cover debt interest or finance costs. however that's not even the best bit

up next we have cash outflows from "intangible assets", i.e. players. now look at that whopping amount of cash outflow in the last 9 months - £211m. This could be predicted based on reviewing any historic accounts to see deferred payments were being built up

this was always going to destroy your cash flow in future years - unless you started a) being really successful and raking in the prize money and b) had no dip at all in your commercial and match day income. a very risky strategy. so now we're getting there in terms of the £140m

so any papers that are claiming we've drawn down our cash "as a precaution" or "for transfers" are just buying into Ed and co's PR and spin. people really should be digging further.

reading between the lines you would expect the sale of Pogba as soon as possible and whatever cash is brought in I would not expect to be reinvested - it'll plug some of the gap between sale and purchase of intangible assets (players) in the short term, a la Ronaldo

from a high level, Ed has massively fucked the MUFC cash flow (as I've been saying for ages now) - and it's extremely hard to recover from this position without asset stripping, especially when you have owners intent on taking cash out not investing cash in.

so truth be told, if football was to be postponed for another 6 months +, then it would actually *probably* be the only thing that would force the Glazer leeches to have to sell. they don't have the personal wealth to put money in to prop up the club in times of need. #mufc

FYI - Reuters on the loan details https://uk.reuters.com/article/man-utd-draws-down-loan-for-potential-pl-idUKL8N2D92F1

by the way, RCF stands for Revolving Credit Facility, it doesn't work like a loan. You don't get the lump sum of cash in one go like a loan, with an RCF the amount is available to borrow at any time - so you can use all, none, or anywhere in between at any time

in theory you borrow for short term needs, then top back up when you get a load of cash in (say season ticket sales time) to minimise interest payments. there will always be a cost to have the facility, but it'll be roughly 1/10th of the interest cost, unless you draw it down

a quick look at the latest published Balance Sheet - as at 31 March 2020 #MUFC had £90m in the bank (down over £100m from the same time in 2019). squeaky bum time for cash!

#MUFC owe £132m more for signings, of which £80m is due within the next 12 months. Not great when you have £90m in the bank and your income is being hampered by Covid-19.

this time last year we also owed c£80m, but had £190m in the bank.

so anyone who thinks that the drawing down of another £140m of debt might be for some big spending spree on new players this summer is in for a hell of a surprise. it certainly isn't for that. the cash is running out.

based on all of the above, if football is postponed for 6 months minimum it would probably be our best chance of getting the Glazers to sell up. of course, they could also sell some shares to some rich mugs, but hopefully investors will be being prudent at this time also