Manchester United’s seat licence plan threatened by ticket tout clampdown

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 but that will now be outlawed by the government in proposed legislation due to be introduced in next year’s King’s Speech.

The government 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 set the limit at the original cost in an attempt to combat touts. Officials at the Department for Culture, Media and Sport (DCMS) claim the change will make the cost of each resale ticket £37 cheaper on average, saving consumers a combined total of £112m every year.

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 a potential resale element, 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. As a result, debentures are not expected to be affected by the new legislation.

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 at a profit for match tickets 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.