Manchester United ticket prices are to rise by 54 per cent within five years, under plans by Malcolm Glazer, the club’s new owner, to boost club revenues to £246 million by 2010.
Previously unseen documents shown to The Times indicate that the American tycoon is also planning to increase the cost of attending Champions League matches by as much as 25 per cent from next year.
The plans are likely to fuel fears that United ticket prices will move beyond the reach of ordinary fans, and come as the Office of Fair Trading considers intervening in Mr Glazer’s £790 million takeover to protect United followers from what might be soaring prices.
According to the documents, which detail Mr Glazer’s vision for the world’s richest football club, United players will also be expected to play a showcase match each year in
The documents also indicate that Mr Glazer is likely to have agreed a deal with the bankers that could make it difficult for United to sign more top stars such as Wayne Rooney, who cost them £27 million. Under the terms of the debt contract, the amount of money United have to spend on transfers has been set at £25 million a year, excluding receipts from player sales, over the next five years, although a further £25 million in total can be spent over that period.
The documents also show that Mr Glazer intends to boost United’s total revenues by 52 per cent to £245.6 million by 2010, up from £161.5 million this year. He expects the rise to be supported by an increase of 61 per cent in matchday turnover, of 13 per cent in media turnover and of 76 per cent in commercial turnover.
United fans will be expected to pay an average of £46 for home games in 2010, just below the current cost of an average
The average Manchester United fan earns £34,000 per year, against the £48,000 earned by the average
Fans are likely to be angered further by Mr Glazer’s plans to raise the price of general admission tickets to Champions League quarter and semi-final matches by 25 per cent, and to second round Champions League matches by 12.5 per cent. Executive seating tickets for all European games will be raised by 25 per cent next year, although there will be no price rise for executive boxes.
A source close to the Glazer camp said: “It is important to stress that these plans are fluid and nothing is set in stone at this stage.”
The documents, which were prepared this month, also detail the huge interest repayments that Mr Glazer will have to make on the £275 million of preferred securities that he sold to three
The preferred securities give the hedge funds — Citadel Horizon, Perry Capital and Ochs-Ziff — the right to take 30 per cent of United’s equity in 2010, with proportionate representation on its board.
The money raised through the preferred securities is on top of the £374 million that Mr Glazer has already borrowed from a syndicate of banks led by JP Morgan.
Mr Glazer, owner of the Tampa Bay Buccaneers, took control of United last month in a swoop on the majority stake owned by the Irish horseracing tycoons John Magnier and J.P. McManus. On May 23, he held 76.2 per cent of the club’s shares.
His offer to buy the remaining stake closes at 3pm on Monday, when the Glazer family will disclose how much of the equity they own.
The board has recommended acceptance of the offer. If the Glazers fail to secure 90 per cent acceptance, the point at which they could forcibly buy out minority shareholders, the takeover have cost £767 million.
If Mr Glazer does secure 100 per cent, the total cost of his takeover will be £831.3 million, including £34 million of banking and legal fees.
There is no mention in the documents of any plans by Mr Glazer to sell Old Trafford and lease back the stadium. Neither does he mention any proposed break-up of the Premier League’s collective-selling arrangements for TV rights.