Glazer 'plans ticket price rises'

How the Glazers do business

US tycoon Malcolm Glazer's plans for Manchester United reportedly include ticket price rises and a spending limit of £25m a year on player transfers.

The Times newspaper said it had seen documents suggesting a boost to the club's revenues - and ticket prices - by about 50% over the next five years.

The draft proposals are likely to enrage United fans, many of whom oppose Mr Glazer's takeover.

A spokesman for Mr Glazer's business told the BBC nothing was finalised.

"Things are still up in the air. Plans have not been finalised," said the spokesman, who represents Mr Glazer's son Joel.

Ticket price rises

The drive for commercialisation is becoming too much for most fans Nick Towle, chairman of fans group Shareholders United Fans reaction to 'ticket price rises'

Earlier this week, Joel Glazer joined Man Utd's board as a non-executive director, along with his brothers Bryan and Avram.

The Glazer's investment company, Red Football, has won almost complete control of the club with its £790m takeover, much to the anger of supporters.

It currently owns about 76.2% of Man Utd's shares.

On Friday afternoon, it emerged that Man Utd chief executive David Gill sold 11,535 shares to Red Football, while group finance director Nick Humby sold 2,546 shares.

Among the draft proposals likely to anger fans are plans to increase ticket prices by 54% over five years, the Times reported on Friday.

Nothing has been signed off. These are speculative numbers Joel Glazer's spokesman Check United's shares

Mr Glazer's ideas for the club's future include increasing the cost of attending Champions League games by as much as 25% from next year.

A deal with his bankers could restrict Man Utd's player purchase fund to £25m. Any more than this would have to come from player sales.

Mr Glazer reportedly intends to increase Man Utd's revenues by 52% to £245.6m by 2010 from £161.5m this year, the Times reported.

The increase will be achieved through a 61% increase in match day sales, a 13% rise in media sales, and 76% increase in sales of merchandise and other commercial activities.

Man Utd's players will have to play an annual exhibition match in Florida to increase revenues.

'Nothing settled'

"Nothing has been signed off. These are speculative numbers," Joel Glazer's spokesman said.

He also denied reports that Sir Bobby Charlton, the veteran England player, would be ousted from Man Utd's board. Bobby Charlton "is in for life, and regarded with the utmost respect by the Glazer camp", Joel Glazer's spokesman said.

Man Utd is finding life at the top increasingly crowded

It is thought that next week the Glazers will reveal their exact shareholding when all replies to their offer of £3 per share have been received.

Analysts say that any hike in ticket prices would almost immediately boost profits because clubs like Man Utd have fixed costs on match days regardless of who they are playing.

'Fine line'

However, any plans to increase ticket prices will have to be handled carefully, as there is a risk of alienating core supporters who will find it harder to absorb higher prices than top-end users such as corporate clients.

The club will also have to become more flexible on how it prices certain matches, offering cheaper seats for the less-popular clashes and increasing prices only for those where demand is expected to be high, they said.

One possibility is the pricing structure used by low-cost airlines, where prices are determined by the number of people applying for tickets.

Supporters' groups have already voiced their concerns about plans to increase ticket prices and said that it could drive fans away.

"People are so disillusioned with the massive increases they are being asked to pay," said Nick Towle, chair of Shareholders United.

"The drive for commercialisation is becoming too much for most fans... It's really beginning to create a big problem."