Glazer's TV blow

14 April 2012

Malcolm Glazer suffered his first blow as Manchester United's new owner today when the idea of a breakaway TV deal was dismissed by the European Commission.

Television revenue is one of the key money-making factors behind his takeover but the American sports tycoon is known to be concerned that the club are not maximising income from their present deal with the Premier League.

It was revealed last night that United have slumped to fourth in the table of earnings from TV cash and prize money - behind Chelsea (£50.8million), Arsenal (£48.7m) and Liverpool (£47.4m) - earning £44.4m after another poor Champions League and Premiership campaign.

Glazer had considered making more money through a breakaway deal but was told today he will get no help from Brussels if he tries to break up the Premier League's collective selling agreement.

EC competition spokesman Jonathan Todd said: "They might try to do that but there is no way we could become involved.

"We do not have a problem with the principle of collective selling and think there are very valid reasons for it. We do not think there is any problem with it under EC competition law."

The news effectively rules out Glazer securing a greater share of TV money for domestic or overseas rights and could increase pressure to hike ticket and merchandise prices for already disgruntled United fans.

The Commission are investigating how lucrative TV rights are sold, and they will play a key role in shaping the packages of coverage for the three seasons from 2007-08 to 2009-10 before negotiations begin with broadcasters next year.

United could make more money selling rights to their games separately because of their global appeal but Glazer has little chance of convincing the league to allow them to do it on his own.

The body's constitution means that 14 of their clubs have to agree on a proposal before it can be approved, and similar suggestions have failed spectacularly in the past.

With Glazer taking on debts of £540million to help buy his 76.1 per cent stake in the Old Trafford club, it was feared he would try to use the Commission to force changes by claiming the collective arrangement was anti-competitive.

Premier League chief executive Richard Scudamore said they would be keeping an eye on events. He added: "We will look to establish where the club are heading and what they are trying to achieve."

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