Manchester United’s plans to sell personal seat licences to supporters to help fund the £2bn redevelopment of Old Trafford has been put under threat by the government’s clampdown on ticket touts.
The Guardian has learned that the proposed PSL model being considered by United permitted seat licence holders to sell on their match or season tickets at a profit to other fans.
The government yesterday announced plans to outlaw the sale of sports and music tickets at inflated prices in legislation due to be introduced in next year’s king’s speech. Ministers had originally proposed capping secondary ticket sales for sport, music and arts events at 30% above the face-value price of a ticket, but have now settled on limiting any resales to the original cost price in an attempt to combat touts.
While football was not included in the details of the draft legislation released yesterday on the grounds that secondary ticket sales are already outlawed under the 1994 Criminal Justice Act, government sources have indicated they would oppose any moves by United to introduce a secondary market for seat licences.
United began consulting fans over introducing seat licences this year in a survey conducted by the commercial research company CSL International, the largest piece of market research ever undertaken by the club. The survey is understood to have been sent to hundreds of thousands of season-ticket holders and United members, with different questions asked of different groups of fans.
Buying a PSL would give fans the right to buy a specific seat at the new ground for a set period, although they would have to pay separately for their season ticket. Such licences have become commonplace in American sport, often as a means of part-funding new stadium builds. In the NFL, in particular, there is a strong secondary market for the licences themselves, with the resale of PSLs generating significant profits.
United sources have disclosed that the PSL model being explored by CSL included the possibility of reselling the licence, although they added that the consultation process was still at an early stage. While a prohibition on resale at a profit is not necessarily a dealbreaker for PSLs, it may make them less attractive investments and lead to United lowering prices.
It is envisaged that PSLs would only be sold for the most exclusive, premium seats at the new stadium, with other areas being reserved for ordinary fans. Licence holders would also have a guarantee of remaining in the same seats every season, as many long-term season-ticket holders have been angered by being relocated by the club in recent years. But should they fail to buy a season ticket, they would automatically lose the licence.
A PSL differs from the debentures available at Wimbledon and Twickenham as they are interest-free loans made to the All England Club and Rugby Football Union in return for the right to buy tickets. The nominal value of Wimbledon debentures is repaid after a five-year period, while Twickenham debentures are repaid to the holder or their family estate after 75 years, with the latter considerably cheaper as a result. Some Twickenham debenture holders have been asked to forgo future repayments in a “Debenture Donation Campaign” to help raise funds for the RFU.
The government has held talks with a number of sporting bodies over the last few months, and indicated that debentures sold by governing bodies are unlikely to be classed as secondary ticketing, as they are funded by loans and the proceeds are reinvested into the sport. No discussions have taken place with United as seat licences are not yet in operation.
It has been reported that United were planning to charge £4,000 for a 30-year seat licence, although if there is no resale value the club may have to alter their pricing strategy.
United declined to comment, but sources at the club made it clear they will comply with all legislative requirements.
