JUST as Malcolm Glazer prepares to wring more money from Manchester United, the consumer regulator has stepped in with a timely reminder that the loyalty of their fans has been exploited. The Barclays Premiership club yesterday lost an appeal against a £1.652 million fine issued by the Office of Fair Trading (OFT) for its involvement in a cartel aimed at fixing the price of replica football kits in 2000 and 2001.

United, however, did receive a £152,000 reduction to £1.5 million, which is payable immediately if they decide not to reappeal. The OFT’s price-fixing investigation related to United and England shirts. The club were accused of entering into an agreement with Umbro, the kit manufacturer, to set the price of certain top-selling adult and junior replica shirts, including the 2001 centenary shirt.

The Competition Appeal Tribunal (CAT), hearing the case, upheld most of the OFT’s findings but also reduced fines for JJB Sports and Umbro from £8.373 million to £6.3 million and from £6.641 million to £5.3 million respectively. Allsports’ fine was increased from £1.35 million to £1.42 million for providing misleading evidence.

The price of replica football kits has been a concern to the OFT since 1999. At the start of Euro 2000, before the investigation, the organisation found it “very difficult” to buy an England shirt for less than £39.99. By Euro 2004, they were widely available for £25.

Sir John Vickers, the OFT chairman, said: “Anti-competitive agreements to fix the prices of replica kit exploited the loyalty of fans. The CAT has confirmed that such serious breaches of competition law call for penalties with serious deterrence.”

Last year, United sold 2.5 million shirts under a long-term merchandising deal with Nike. The agreement guarantees the club income of about £23 million a season for the next 12 years. Yesterday’s ruling does not curb United’s ability to raise the prices of its shirts, but it will deter any collusion with manufacturers or other clubs.

If Glazer were to hike prices in the club shop, United shirts would simply stand out as more expensive than those of their rivals. United fans hostile to the £790 million takeover by the US billionaire and his sons have already vowed to boycott merchandise in an effort to wreck their business plan.

The long-term success of the highly-leveraged takeover depends on the Glazers’ ability to increase significantly commercial income both in the UK and overseas.

The family is borrowing £540 million to fund the acquisition, of which £265 million will initially be secured against club assets. Many observers have questioned how the Glazers intend to squeeze more money out of United, a club in competitive decline whose position as the Premiership’s glamour team has been usurped by Chelsea.

Greg Dyke, a former United director, said: “I think most of us who have looked at it think he can’t conceivably fund that bid.” The Glazers’ advisers are expected to post a formal offer document today that should provide more detail to their business plan.

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