United plans the next big gamble

MANCHESTER United has revived plans to build a casino next to its Old Trafford ground.

The club, which is being stalked by US sports tycoon Malcolm Glazer, is keen to take advantage of controversial plans to deregulate the gaming industry, details of which were unveiled by the Government last week.

A United insider said the business rationale for such a move was 'compelling'.

The club estimates that an average of 9,000 visitors a week would visit its themed casino, spending between £30 and £40, the number of punters peaking on match days.

It is not clear what slice of this estimated annual revenue of up to £20m United would take - it would build the casino in partnership and reportedly held talks last year with Las Vegas operator MGM Mirage. The club also would benefit indirectly as more fans visited its souvenir shop, museum and the stadium itself.

Glazer, who has built a 28.1% stake in United, is also believed to be interested in boosting gambling revenues, as are several other football clubs.

Manchester City has signed a deal with Kerzner International for a casino complex, Newcastle United has teamed with MGM, and Stanley Leisure has announced plans for a casino next to Leeds United's Elland Road ground.

Meanwhile, pressure is growing on the United board, led by chief executive David Gill, to force Glazer to show his hand. It could ask the Takeover Panel to tell Glazer to 'put up or shut up'. But a formal offer from Glazer, which would value the club at about £800m, would present the board with a dilemma on whether to recommend it or not.

Privately, several United directors admit the share price is seriously overvalued. But they fear that Glazer's highly leveraged bid could jeopardise the future running of the club by loading up the balance sheet with huge debts, severely limiting manager Sir Alex Ferguson's ability to operate in the transfer market.

Glazer's plans - first revealed in Financial Mail - have been hampered by the refusal of Irish racing tycoons John Magnier and JP McManus to sell their 28.9% stake.