Manchester United Forced To Make Concessions On Season Tickets

The Office of Fair Trading ordered Manchester United to "revise its season-ticket terms and conditions to make them clearer and fairer for fans'' on Monday, prompting supporters' groups to claim a "significant victory'', but it is clear that the fight to stop the Glazers continuing to hike prices is far from won.
A Department for Culture Media and Sport select committee hearing may be the next battleground.

Manchester United introduced the ACS (Automatic Cup scheme) which often compelled season ticket holders to take and pay for mid week Carling Cup and FA Cup games against lowly opposition where the game normally held little appeal to some fans, or they were just not able to attend. Thus passing on the onus of selling tickets to the fans and not themselves. The English and European champions have agreed to ensure season-ticket holders have "upfront transparency on potential costs to a guarantee of a ticket to all home games in all competitions'', according to the OFT, although really such conditions should be a given, not a privilege, in any season ticket.

United fans had expressed concern over commiting for an unknown amount of cup ties against unknown opposition. Some buyers of "one-year'' season tickets found they were not automatically entitled admission to some cup ties, indeed, in some of the bigger Champions League games they were overlooked completely as United used tickets for these games for Corporate packages which bring in far more cash then your average fan would. . Concessions have now been made by United, who are to abandon single-year deals.

How much pressure the OFT action places on the Glazers to freeze prices for next season is debatable. Having recently released annual accounts revealing United's startling debts, there is a need for the American owners to maximise revenue.

The OFT, though, are happy with its investigation. ''We have worked closely with Manchester United and are pleased that the club has amended its season-ticket terms to the considerable benefit of its fans,'' said Mike Haley, OFT head of consumer protection. "These changes greatly improve the protection for season-ticket holders.''

The OFT told fans groups such as the Manchester United Supporters Trust that there would be "ongoing monitoring to ensure [ticket schemes] are operated fairly in future''. United, though, will feel the OFT judgment is a score draw. Fans' complaints about price increases and the Automatic Cup Scheme were not upheld.

Fans insist these are an "abuse of a dominant market position'' under the Competition Act and pledged to fight on. "We have forced United's hand on a few of their ridiculous policies and this is a win for supporters,'' said a MUST spokesman. "Yet it is only the first step and shows what can be done with supporters working together and not letting the club roll over the fans.''

Clearly, the OFT must keep a sharp eye on the Glazers, a point that will doubtless be made at Westminster if fans have their way. "We are hoping for a DCMS select committee hearing,'' added the MUST spokesman. Given the friends the fans' groups have in Whitehall and Westminster, this hearing should definitely take place.

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Office Of Fair Trading Investigating Manchester United Ticket Prices

Here is something rather interesting from Sports Illustrated

Manchester United is being investigated by Britain's competition watchdog after fans of the English champions complained about a sharp rise in ticket prices and that season ticketholders were being forced to buy tickets for matches they did not want to see.

Representatives from the Manchester United Supporters Trust (MUST) met with officials from the Office of Fair Trading on Wednesday and were told an investigation had begun into its claims that the club's pricing policy violates competition law.

"It's an abuse of their dominant market position," MUST chief executive Duncan Drasdo said Thursday.

MUST has received 35,000 complaints from fans about United's requirement that season ticket holders purchase additional tickets for non-Premier League matches, including the FA Cup and Champions League. They also complained about ticket price rises, with the cost of some season tickets rising by as much as 60 per cent since the 2004-05 season.

Before the compulsory cup ticket plan was introduced in 2007, season tickets were only for league matches. The club responded to fans' anger by exempting League Cup matches from 2008-09 season ticket packages.

"We're delighted that the OFT have chosen to launch an investigation into this matter," Drasdo said. "We're confident that the level of political support we're gathering will ensure that the Fair Deal for Fans campaign now goes beyond United and beyond our compulsory Cup ticket scheme.

"Huge ticket prices and the systematic exploitation of loyal supporters affect many fans at clubs throughout all the divisions."

In a dossier sent to the OFT last month, MUST claimed that a season ticket that cost 532 pounds ($795) in 2004-5 is now priced at 912 pounds ($1,364) -- before cup matches are factored in.

"The automatic cup scheme seems a pretty clear-cut case of unfair practices, and we were glad to learn that the OFT will be looking into it," said lawmaker Alan Keen MP, who is chairman of the All-Party Football Group. "But now it's up to politicians to use the various tools at our disposal to broaden this campaign and get a fair deal for all fans."

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MUST Complain About Manchester United Ticket Prices

By UWS - 19/11/2008 10:13 Original Article Can Be Viewed Here

MUST, the independent Manchester United supporters' trust, will today request that the Office of Fair Trading (OFT) investigate three complaints about Manchester United ticketing policy. The fans' group believes the Club has acted unlawfully, so has called for a full investigation into a possible breach by MUFC of its statutory and legal obligations to Season Ticket holders. MUST has taken expert legal advice [Note 1] on Contract, Consumer and Competition Law. This expert advice indicates that MUFC is in breach of both the Unfair Terms in Consumer Contracts Regulations 1999 and the Competition Act 1998 and that there is a high probability of the Complaint being successfully upheld. Specifically, the three complaints are that:

· MUFC's Season Ticket terms and conditions are in breach of the Unfair Terms in Consumer Contract Regulations 1999.

· MUFC's Compulsory Automatic Cup Ticket Scheme is in breach of The Competition Act 1998, Part II, Section 18(2).

· MUFC's pricing policy is in breach of The Competition Act 1998, Part II, Section 18(2)(a).

The full complaint and supporting documents can be viewed at: MUST website In addition to complaints that United's rocketing ticket prices break the law, the fans have also pointed to specific assurances the Glazers gave to the Government following their takeover in May 2005 that prices would not rise. MUST say: "Over recent years we've seen unfair terms and huge ticket price rises imposed on supporters by club owners taking advantage of their loyalty. MPs from all political parties have raised concerns and even the Minister for Sport felt it necessary to launch an outspoken attack on the huge price rises at Old Trafford in recent years. For a long time Manchester United was by no means the worst offender having previously had an admirable policy of keeping prices relatively low despite the success of the club. All that changed when the Glazers took over. However now, with the help of a team of eminent competition lawyers, economists and experts in sports law, we have been able to compile a comprehensive complaint based on Competition and Contract Law, which could have welcome consequences for supporters at clubs throughout the country." - Duncan Drasdo, MUST Chief Executive "The Competition Act places strict obligations on all companies, including Football Clubs, not to abuse dominant market positions. By tying two separate products together, Manchester United, as dominant in its market, may well have breached the competition rules and I would urge the Office of Fair Trading to consider launching an investigation of this complaint" - Professor Steven Anderman, University of Essex. The FSF is fully supportive of the action being taken by MUST to respond to such unfair practices. If this action is successful it could have positive benefits for supporters at many clubs. - Dr Malcolm Clarke, Chair of the Football Supporters' Federation Background to MUFC's Ticketing Policies Since the 2005 Takeover: Since the takeover by the Glazer family in 2005, ticket prices for Manchester United have increased by around 50-60%. In 2007 MUFC made their Automatic Cup Scheme compulsory, meaning that all Season Ticket holders had to agree to purchase all home cup games at Old Trafford or lose their Season Ticket (although in 2008, following significant customer complaints, MUFC relaxed this requirement, exempting League Cup matches). 2007 also saw the introduction of a 'One Year' Season Ticket which also required holders to join the Automatic Cup Scheme but which did not guarantee them tickets for Cup Ties. Background to the Complaint and MUFC's breaches of the Law: The Unfair Terms in Consumer Contracts Regulations 1999 [Note 2] provide that in contracts where consumers have no say as to the Terms and Conditions, these conditions should not cause a significant imbalance in the parties' rights and obligation that are contrary to the requirements of good faith. MUFC breaches these regulations in the following ways: · 'Contract Bundling' (i.e. only allowing consumers to enter into the Season ticket Contract if they also enter into a contract to purchase all home cup tickets). · The consumer is forced to sign up to a contract for which they do not know the price. · The consumer does not know the quality of the product. · The consumer is forced to enter into a contract for all home cup games yet is not guaranteed a ticket. The Competition Act 1998 Part II [Note 3] states that a company that is in a 'Dominant Market Position' must not abuse this position. MUFC is in a Dominant Market Position when it comes to the sale of tickets for home matches at Old Trafford and is abusing its position in the following ways:

· Forcing Season Ticket holders to purchase tickets for all home Cup ties is a form of 'contract bundling' strictly prohibited by the Act.

· Forcing Season Ticket holders to sign a "blank cheque" for home cup matches, not knowing how much this will cost.

· Forcing Season Ticket holders to buy a product that may be an inferior product whilst also not guaranteeing them the product.

· MUFC has imposed unfair purchase prices for tickets. Since the 2005 takeover, prices for Season Tickets have increased by 50-60% (or potentially 166% if the compulsory Automatic Cup scheme is taken into account). These price rises have occurred despite representatives of the Glazer family making representations to the Department for Culture Media and Sport when the takeover was being investigated that they would not be increasing their ticket prices to pay off the interest payments on the debts incurred to purchase the club......Back To Home Page.....