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Volume 27 No. 35
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OVG sells $125M naming-rights deal for Manchester City arena

Oak View Group has sold a 15-year naming-rights agreement for an arena it is developing next to EPL team Manchester City’s Etihad Stadium. OVG brokered the deal with Co-op, one of the world’s largest consumer co-operatives with diversified interests in food, funerals, insurance, legal and health services. The arena will be known as Co-op Live.

 

Financial terms were not disclosed, but one source familiar with the deal said it’s worth an estimated $125 million, which will pay out roughly $8.3 million annually.

 

With an expected capacity of 23,000, Co-op Live will be the largest indoor music venue in the UK. Construction will start in November and bring in 3,350 construction jobs and 1,000 roles and apprenticeships when it is completed in 2023. 

 

The $446 million (£350m) Co-op Live will be an arena that can be configured for both large and intimate concerts but it can also host NBA and NHL games, and esports, OVG President of Global Partnerships Dan Griffis told SBJ. 

 

OVG chose Manchester to build Co-op Live because of the city’s rich history in live music entertainment and Co-op’s similar values, Griffis added.  Co-op Live will produce zero food waste and will be available to community groups on non-event days. Populous will lead the design and construction of Co-op Live, while CAA Icon will handle project management, Griffis said. 

 

Co-op Live will be Manchester’s second arena managed by a major U.S. venue operator. AO Arena, which is located in downtown Manchester, is owned and managed by AEG, where current OVG CEO Tim Leiweke was president and CEO for 17 years. 

 

This is the third major naming-rights deal for OVG this year, adding to deals with Amazon for Climate Pledge Arena in Seattle (which will be the home of the NHL expansion team, the Seattle Kraken), and UBS for the new Belmont arena under construction on Long Island (which will serve as the home of the New York Islanders).