Increases in the price of Manchester United tickets have not caused the club’s revenues to decrease
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Professional football clubs in Britain are run as private businesses. However, they are unusual private businesses in that the pursuit of profit does not appear to be massively important to many of them. Many clubs make losses year after year because the revenues generated from selling tickets, hospitality and football-related merchandise are not enough to cover the costs of running the club. This is especially true in the lower leagues, where clubs require regular cash injections in order to survive.
Before 2007, clubs were able to borrow to fund their cash shortfalls. A classic example is Portsmouth FC, which bought temporary success by racking up huge debts. However, due to the ongoing financial crisis, this option is no longer available. The price of credit has increased and it is far harder to obtain. Most football clubs have recognised this new commercial reality: they must live within their means in order to survive.
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