Manchester City lease deal gives council extra £320,000 2026

Key Points

• Manchester City will pay £320,000 per annum extra in updated lease deals for the Etihad Campus.
• The £320,000 consists of £33,000 for the stadium lease, £252,000 for City Square and £35,680 for the Medlock Square hotel and entertainment area.
• This money will be added to the £6.3m Manchester City will have paid the council this year.
• £4.4m of the sum will be rent, £1.1m will be naming rights and £790,000 will be Champions League-related.
• Future lease payments for the stadium and the City Square are likely to increase with inflation.
• The Medlock Square land lease has a 3 per cent increase in rent every year plus future reviews.
• Garry Bridges, Manchester council leader, has called the income “brilliant” and will help with sport and leisure facilities throughout the city.
• According to the council, the income will be controlled by both Sport England and the council and ring fenced for reinvestment in sport and leisure provision.
• Manchester council contributed £33m of the £110m cost of building the original Etihad Stadium, called the City of Manchester Stadium at the time.
• The lease with Manchester City started in August 2003 and has a term of 250 years.

Manchester (Manchester Mirror) November 10, 2026 — Manchester City’s updated lease arrangements at the Etihad Campus will provide Manchester council with an additional £320,000 every year, according to figures released by the local authority and reported by ManchesterWorld.

As reported by ManchesterWorld, the increase follows a variation to the lease agreement in light of changes to the stadium and surrounding land. The area has been transformed into a major visitor destination since the ground first opened for the 2002 Commonwealth Games.

The additional £320,000 will be paid on top of the £6.3m Manchester City already paid to Manchester council last year. The council said the revised arrangements would create a growing, recurring income stream from the Etihad Campus.

How much extra will Manchester council receive?

The additional annual payment is made up of three separate elements connected to Manchester City’s use of council-owned land and facilities at the Etihad Campus.

According to the council figures published by ManchesterWorld, the council will receive:

• £33,000 a year from the stadium lease.
• £252,000 a year from City Square.
• £35,680 a year from land in the new Medlock Square hotel and entertainment zone.

Together, these amounts total £320,680, which ManchesterWorld rounds to £320,000 in its reporting. The payments relate to the club’s lease arrangements across the wider Etihad Campus, rather than a single increase in stadium rent.

Why is Manchester City paying more?

The updated lease follows changes taking place at the stadium and surrounding land. ManchesterWorld reported that the area has been developed into a major visitor destination since the Etihad Stadium first opened for the 2002 Commonwealth Games.

The council said the club’s substantial investment in the campus would generate further income for Manchester City. It said that, following those developments, it had concluded negotiations for variations to the lease that would allow the council to benefit from additional annual income.

A Manchester council spokesperson said: “Following the club’s substantial investment in the campus, which would generate a further income for them, the council has since concluded negotiations for variations to the lease that means the council can benefit from further income each year – along with an annual increase of 3pc.”

How much does Manchester City already pay?

Manchester City’s payments to Manchester council already amounted to £6.3m last year, according to figures reported by ManchesterWorld.

That total was made up of:

• £4.4m in rent.
• £1.1m from naming rights.
• £790,000 from income linked to Champions League games.

The new £320,000 annual boost will therefore add to an existing income stream that already exceeds £6m a year. The council said the income is jointly managed with Sport England and is ring-fenced for reinvestment into sport and leisure activities across Manchester.

Will the payments continue to rise?

Yes. According to ManchesterWorld, lease payments for the stadium and City Square are set to increase in future through inflation-linked increases.

The land lease at Medlock Square includes an annual rent uplift of 3 per cent, as well as future reviews. This means the additional income received by the council is intended to rise over time, rather than remain fixed at the initial £320,000 figure.

A Manchester council spokesperson said the agreement represented “a substantial and recurring return” on the council’s original investment in the stadium for the 2002 Commonwealth Games. The council said the arrangement had created an annual return of more than £6m and that this income would grow each following year.

What has Manchester council said?

Manchester council leader Garry Bridges welcomed the additional income, describing it as an important funding stream for the city.

As reported by ManchesterWorld, Bridges said: “It shouldn’t be understated what a brilliant income this is for the city and a stream of funding that most councils in this country dream of.”

He added: “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 impact of this for our communities is incredible.”

Bridges also said the council had a responsibility to deliver for residents. “This was a great deal for the city and continues to be a great deal for the people of Manchester,” he said.

What has Manchester council said about the negotiations?

The council said it had sought independent third-party advice to ensure it could negotiate the best possible rental income for the land.

A Manchester council spokesperson said: “As freeholders of the Etihad Campus, the council has always sought independent third-party advice that makes sure we can negotiate the best deal in terms of rental income for the land – and on top of this, the council has also negotiated further uplift through naming rights and income linked to any potential European games.”

The spokesperson said the council had also negotiated further income through naming rights and income linked to potential European games. The council said the revised lease variations reflected the long-term value secured for the city.

What is the history of the Etihad Stadium lease?

Manchester council paid £33m towards the £110m initial construction cost of the Etihad Stadium, which was previously known as the City of Manchester Stadium.

Manchester City’s lease at the ground began in August 2003 and runs for a period of 250 years. Since the lease agreement was signed, the rent paid to Manchester council has grown through negotiated agreements with the club.

The stadium opened for the 2002 Commonwealth Games. The surrounding area has since been developed into a major visitor destination, with changes to the stadium and nearby land forming the basis for the updated lease arrangements.

Has Manchester City commented?

ManchesterWorld reported that Manchester City was approached for comment. The article did not include a response from the club.

The updated lease arrangements were disclosed in town hall papers published in August, according to ManchesterWorld. The council’s newly released figures set out the additional annual income that will be generated under the revised agreements.

Background of the development

The Etihad Stadium was originally built as the City of Manchester Stadium for the 2002 Commonwealth Games. Manchester council contributed £33m towards its £110m initial construction cost.

Manchester City began leasing the ground in August 2003 under a 250-year agreement. Since then, the council has received rent from the club, with payments increasing through negotiated agreements over time.

The latest variation follows investment by Manchester City in the Etihad Campus and changes to the stadium and surrounding land. The council says the area has become a major visitor destination since the stadium first opened, while the new Medlock Square hotel and entertainment zone forms part of the wider development.

The council says the income generated through the agreement is jointly managed with Sport England and ring-fenced for reinvestment into sport and leisure activities across Manchester. It says the arrangement provides a recurring return on its original investment in the stadium and will increase in future years.

Prediction: how this may affect Manchester residents

For Manchester residents, the immediate effect is likely to be financial rather than visible at the stadium. The council says the additional income will be ring-fenced for reinvestment into sport and leisure activities across the city, meaning the money is intended to support community provision rather than enter the council’s general budget.

If the inflation-linked increases and the 3 per cent annual uplift at Medlock Square continue as described, the council’s income from the Etihad Campus could grow further in future years. Council leader Garry Bridges has said the existing income already exceeds £6m annually and will increase every year into the future.

For users of local sports and leisure facilities, the practical impact will depend on how the council and Sport England allocate the jointly managed funds. The council has not set out a specific list of projects in the reported announcement, but says the money is intended for reinvestment into sport and leisure activities across Manchester.

For Manchester City, the revised lease reflects the commercial value created by its investment in the Etihad Campus. The club’s development of the stadium and surrounding area has increased the income potential of the site, while the council says it has secured additional recurring revenue through the updated arrangements.