Man City lease reviewed amid Etihad Campus expansion

Manchester City's lease at the Etihad Stadium was placed under review last month amid a major expansion of the club's east Manchester campus, it has emerged.

City has a long-term lease at the ground with Manchester City Council and finished expanding its north stand earlier this year, which increased the stadium capacity to more than 60,000 people.

It has been building a new £300m entertainment zone known as Medlock Square which includes a Radisson Blu Hotel and a zip-line, with plans for a new 600-person capacity entertainment venue which the council granted planning permission in June.

The lease review was sparked as a result of changes taking place around the Etihad Campus, the Local Democracy Reporting Service (LDRS) understands.

Council papers describing a decision about a "variation of leases with Manchester City Football Club" have been made public on the town hall's website but specifics of the finances have been kept hidden from view.

The review is expected to result in an uplift in the yearly base rate fee paid to the city council from the club, currently said to be between £3m to £4m a year.

The authority is also understood to pocket extra fees from the club related to income generated from the campus, adding to the cash it makes from the deal.

Changes to the lease were put forward in light of the club being expected to generate more money from its operations at the Etihad Campus.

The land around the Etihad has been transformed since the club first moved to the ground, with City having grown into a global footballing powerhouse over the last two decades.

Insiders at the council have said the relationship between the town hall and club "has changed" from what it was.

Man City's move to its current home in east Manchester from its former Maine Road base is widely thought to have helped put the club on the radar of its current owners.

Today there is a "different" type of relationship between the club and the council and a "professional business-like" approach to dealings, described as being on a formal "working" basis, the LDRS said.

The council's decision to review the lease with City became effective from 3 September.

Council notice papers stated the decision was to "approve the council entering into the variation of leases with Manchester City Football Club to enable the north stand expansion of the Etihad Stadium".

It added: "The decision supports the shared objectives of the party within the Eastlands regeneration framework, developing Sport City as a world class sport and entertainment district.

"A failure to agree to the variation would impact upon the football club's ability to continue to grow as a global brand.

"This failure would likely cause significant reputational damage to the council in its capacity as custodians of the stadium."

More details from the changes are expected to be shared in future public reports from the town hall.

Manchester City declined to comment.

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