How much extra money Man City will now pay to the council under new Etihad Campus lease agreement

Manchester City will pay Manchester City Council an additional £320,000-per-year under an updated lease agreement covering parts of the Etihad Campus.

The increased payments will add to an existing annual income of more than £6.3m, with the money reinvested into sport and leisure across the city.

Man City to pay extra £320k-a-year in new Etihad Campus deal

The additional £320k will come from three separate elements of the revised lease agreement, following changes to the Etihad Campus and its surrounding land.

City will pay an extra £33,000 annually for the stadium lease, £252,000 for City Square and £35,680 for land within the new Medlock Square hotel and entertainment zone.

The increased payments will add to the £6.3m already received by the council last year, comprising £4.4m in rent, £1.1m from naming rights and £790,000 linked to Champions League matches.

The stadium and City Square payments will continue to rise in line with inflation, while the Medlock Square land lease includes an annual 3% increase.

Council leader Garry Bridges described the arrangement as a significant source of funding for Manchester, saying: “This is more than £6m every year that is pumped into sport and leisure investment and activities across the city that otherwise wouldn’t exist – and will increase every year into the future.”

The council also confirmed that the income is jointly managed with Sport England and ring-fenced for reinvestment into sport and leisure activities across Manchester.

Manchester City Council contributed £33m towards the Etihad Stadium‘s original £110m construction cost ahead of its opening for the 2002 Commonwealth Games. City's 250-year lease began in August 2003.

FGG says: Etihad Campus redevelopment continues to benefit Manchester

The additional payments underline how the Etihad Campus has developed into a major commercial and leisure destination, rather than simply a football stadium.

With further investment and redevelopment continuing around the ground, the council stands to benefit from a growing revenue stream, while the ring-fenced funding provides a direct return for communities across Manchester.