City matches earn council £10m
MANCHESTER City Council has earned more than £10m from the performance of Manchester City since the club moved to its new stadium.
When Manchester City struck a deal with the council to move from Maine Road in 2003 it signed a long-term lease at Eastlands and agreed to pay a share of its income when attendance figures reached 32,000.
Figures released by the council under the Freedom of Information Act show it received £10.5m in the five financial years covering 2004-08.
This revenue peaked at £2.7m in 2006, rising from £1.9m in 2004 and fell back to £1.1m in 2007. Last year the council earned £2m.
The figure for the season ended May 2009 has not yet been finalised, but is likely to have been boosted by higher attendances following the takeover by Abu Dhabi’s Sheikh Mansour and City’s run to the quarter finals of the Uefa Cup.
Under the terms of the deal, which covers income from match attendances, car parking and other major events such as concerts, the council gets 50% of receipts when more than 32,000 people attend. This share rises to 60% when attendance rises above 40,000 at the 48,500 capacity stadium.
Recently announced figures for the year to May 31, 2009, show average attendances were up by around 800 to 42,890. The club reported net losses of £92.6m on turnover of £87m, up 6%. But new owner Sheikh Mansour cleared loans of £305m by converting it into equity.
The £100m City of Manchester stadium at Eastlands was built with public money for the 2002 Commonwealth Games. It is still owned by the council, however the Abu Dhabi Group is understood to be interested in acquiring the site. The council said no talks have ever taken place.
