Why Man City aren't making a penny out of £182m behind-the-scenes investment
08/05/2024 16:45
Man City owners City Football Group do not stand to make a penny out of their huge investment in the controversial Co-op Live project – but they are set benefit indirectly.
City Football Group, the Sheikh Mansour-backed group financing the current treble holders, have invested 50% of the £365m it has cost to build the arena, which is based on Man City‘s Etihad Campus.
However, as reported by The Athletic, they group will not profit financially from the project, which has been beset by a series of high-profile delays in recent weeks.
The venue is yet to open its doors, with acts such as Peter Kay, the Black Keys and Olivia Rodrigo forced to postpone their gigs on Man City’s doorstep.
The club have had regular meetings with the team behind Co-op Live and are said to be shocked by the delays but, as they are not involved in operations at the site, there has been no formal offer of support.
So why would City invest £182.5m in an infrastructure from which they are not due to see any of the revenue, either from ticketing or merchandising? The answer is multi-faceted.
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How will Man City make a return on Co-op Live?
City, who are chasing a sixth Premier League title in seven years, have their own stadium expansion project in the works, with £300m being spent on developing the North Stand, taking capacity to 60,000 from 2025-26.
That will mean increased football at the Etihad Campus, which will be supplemented by attendees at Co-op Live.
The venue will be the biggest indoor arena in Europe and is set to host as many as 23,500 spectators.
That in turn will help drive commercial revenue at the Campus, with City having scope to open their specialised fan zones and other facilities on non-matchdays for concert goers.
So while the venue itself will not be driving revenue for the club, there will be a knock-on impact.
The club shop and museum might see a small uptick too, but City Football Group are likely to drive more significant revenue from the on-site 400-bed hotel.
The significance of these properties can’t be understated. After all, it is the sale of two on-site hotels for £76m that Chelsea are relying on to keep them afloat in terms of FFP.
City have been masters on the commercial front in recent years, both in terms of revenue and their wider brand.
Their most recent set of accounts showing £341m of commercial revenue in 2022-23 alone, and – despite the early teething problems – Co-op Live will only strengthen their reputation as a commercial juggernaut.
