The thing is, United fans are getting fed up with the recent
increases in ticket prices. If you've noticed recently on tv, Old
Trafford has had many empty seats due to (a) many more passionate
fans have been priced out of watching every single game, (b)
leading to more daytrippers/prawn sandwich brigade who leave the
stadium 15 minutes before full time. You may have noticed that the
atmosphere in Old Trafford has been shockingly poor this season,
where away fans continually outsing United fans in what is the
biggest stadium in club football in the UK. (Leeds game for
example)
Secondly, there is an ACS (automatic cup scheme) being forced on
all season ticket holders meaning they cannot opt out of FA Cup and
Champions League matches which may be midweek/late nights when they
cannot attend due to schedule clashes/other commitments. This is
all part of the Glazers' plan to suck as much money as possible
without listening to the pleas of the average United fan. "Want a
season ticket? Pay for cup matches you cannot attend. If not, pay
the normal price for every league match you attend." As of Sept 30
2009, 16% of corporate and executive tickets remain unsold. (That's
where the biggest money comes from)
Prices for the average attendee have been continually increasing
14%, 11% and 11% each year.
Besides, if you analyse the prospectus carefully, notice 23
million pounds have been taken out of United for "management and
consultancy fees" with each Glazer pocketing more than 6 million
pounds. All this for sinking a previously debt-free, financially
stable club into one with the biggest debt in football. 41.9
million pounds have been paid last year just to service the
interest of the principal debt ALONE. Which means the principal
debt of about 509 million pounds has not been touched. In addition,
the funds owed to PIKs with an interest rate of 14.25% has
snowballed from to 200 million pounds with the first tranche due to
be paid in August 2010 (no wonder they need to raise capital
through the bond offer).
On top of that, they are now planning to sell Carrington (the
state of the art training complex a financially flourishing
pre-Glazer United could afford and build) to one of the Glazers'
holding companies and lease it back to United. That's asset
stripping in broad daylight. And if a multi-billionaire comes and
buy United I suspect that he'll have to pay extra to get Carrington
back under United's control too.
What people don't get is how some people like the Glazers can
come in and buy a club like United when they don't have the money
to pay for it in full, take a huge loan of 500 million pounds,
probably more than the GDP of a 3rd world country, secure the debt
against the club, raise ticket prices through the roof, force the
ACS on season ticket holders, and still pay themselves "management
and consultancy fees" while not touching the debt they incurred.
And probably in the future, when they manage to sell United at a
huge profit, eff off and go back to Florida to enjoy the fruits of
their "clever investment project".
Who suffers the most? The fans, no doubt. Imagine, during a
period of sustained success, 3 Premier Leagues in a row, 2
consecutive Champions League finals, including one win, and a World
Club Championship to boot, selling the best player in the world,
and yet they are still in this precarious financial position. In
the very near future, Sir Alex would be retiring, so will Giggs,
Scholes, van der Sar, and the old guard. Can one guarantee success
on the pitch? If United fails to finish in the top 4, the loss in
Champions League revenue etc will seriously implicate their cash
flow and ability to pay off the debts. Some of the glory-hunting
supporters will no doubt move on to teams like Chelsea, Arsenal,
even City and there would be lower attendances. To compensate for
the loss in revenue, the Glazers would most probably increase
ticket prices again.
Yes, some of the analysis which can be found all over the web
might be exaggerated, but do not underestimate the threat of this
situation, which could have been avoided altogether in the first
place had the Glazers not been allowed this daylight robbery.
Lets be honest, everyone gets fed-up with any type of increases
in prices. Nobody wants to pay more if they can... Our very own
experienced tells use this... A few years ago watching EPL was only
$8. Then it went up to $15. That's like almost 100% increased. We
grumble a lot but still ended up paying for it. Then a few years
later, it went up to $25. Again everyone around us were not pleased
but it still end up as the crown jewel of the provider's
programme.
Price increased are part and parcel of the game now... It
is not unique to them only, In 2008, Portsmouth increased
by 17.5%, Blackburn by 12.9%, Sunderland 12%, Spurs 10.7, Wigan
10%... Arsenal don't even need to increase by much, only 2.6% cos
they have the most expensive tickets in UK at $60 pounds.
In my honest opinion, to blame the Glazers for all the negative
that take place is a bit unfair. They have brought positive to the
club as well. As you mentioned, 3 consecutive titles and twice in
the CL final winning one of it didn't happened just by
chance...
A piece I read which I thought was quite enlightening and fair
had this part within...
It would be preferable if any downfall was for football, rather
than financial, reasons, but both elements need expert management
to produce success. A popular theory is that Liverpool’s
domination of English football ended because the club failed to
adequately replace an ageing team. Yet, just as significantly, it
failed to capitalise commercially on the boom in the English game
which limited its spending power. Arsenal fell away in the last
five years because of the limitations placed on Arsene Wenger, the
manager, by the building of a new stadium. Economics invariably
play a role in the balance of power, and if boardroom decisions
precipitate a decline at Manchester United, these will not be
unique circumstances.
The Glazers’ business plan is increasingly troubled, but three
consecutive League titles and a Champions League win would suggest
it has not been without its benefits. The idea that there was some
golden era of club ownership – now expanded to include Manchester
United plc – is something of a myth, too.
It is simplistically imagined that, without the Glazers,
Manchester United would have those same titles, with the same
income, a £91million operating profit and £80m from the sale of
Cristiano Ronaldo, to be lavished on the finest players in
Europe.
Here is an alternative scenario. On December 7, 2005, Manchester
United lost 2-1 to Benfica to finish bottom of Champions League
group D. It is the only time they have failed to make it to the
knock-out stage since the 32-team format was introduced. The
Glazers had been in charge for six months.
Had United been a plc there would have been an immediate impact
on the share price followed by a statement at least, and possibly a
profits warning. Who knows what the ramifications would have been
from there? With no shareholders to placate, the Glazers simply
kept their mouths shut, flew home and in 18 months Manchester
United were champions again.
Now extrapolate the fall-out from a financial hit to the plc in
2005. Would it have left United open to offers on the odd player,
perhaps an expendable unproven one like that Portuguese lad who
many had marked down as a show pony? That would have plugged the
Champions League shortfall straight away. Even had Ronaldo been
around to ignite Manchester United’s resurgence, the idea of three
League titles and £80m from last summer is a little
far-fetched.
A plc board does not turn down very good money for a player who
wants to leave and there was £60m sitting on the table from Real
Madrid in 2008. So, no Ronaldo, no third straight title because
take him away and Liverpool are League champions and considerably
stronger for it. Maybe they keep Xabi Alonso, too.
Nobody knows what would have happened to Manchester United plc,
but to afford it every positive that has taken place under the
Glazers, and none of the negatives, is shallow.
Sir Alex Ferguson served both regimes and there must be a reason
why he remains an advocate of private ownership. Predictably, those
favouring strict financial regulation have seized on the crisis at
Manchester United to advocate reform. Yet, if anything, this
demonstrates the contrary worth of football’s free market as an
agent of change. If clubs could only spend what they generated,
Manchester United’s supremacy would be as good as cemented.
Indeed, there could be a renewed resolve to generate television
deals individually, rather than collectively, to maximise this
advantage. That would spell the end of competition in the English
game. The financial gain would be so great that a chimpanzee could
take United to the title every year.
I am not saying they are right or wrong here. As a fan, of
course we wouldn't want to see the club we support in huge debts.
But we have to understand that its also a business. What they does
with the club, how much they pay themselves, its really up to them
cos its a private "company" now and no longer a PLC.
So they have their rights. Cos it's them who put up the $810m
pounds of their money to buy it. Not the fans... If this
venture goes badly wrong, it's they who will have to bear this
burden for the rest of their lives and not the fans... Of course we
can say they took out $275m only and the rest was loan from banks.
But remember this, they are responsible for the loan ultimately,
not the fans.
Whether they make enough money and sell it away and return to
the US in the future, It really isn't a thing anyone should be
trouble with... They took the risk, and if it pays out handsomely
for them years later, they deserve it for managing well. If it
turns out badly, it's the Glazer family who will pay the heaviest
price and goes bankrupt, not the fans.
So you still think the fans suffer the most?
For me, If the only club I ever supported fails to finish
in the top 4 and slide down maybe even out of the premiership, I
will just lose my keen interest in watching football... I will
still like to know how their situation is but I am
not going to jump to another club for sure cos I can
never find the same feeling towards it...