Arena operator and city centre businesses object to rival Eastlands plans

The operator of Manchester Arena has lodged a formal objection against proposals for a rival development.

US-owned Oak View Group (OVG) wants to build a £350m 23,500-capacity arena in the Eastlands area of Manchester, including a 181,000+ sq ft out-of-town Class A food & beverage and retail space.

OVG submitted a planning application on March 31, and said its arena will create around 3,500 jobs during construction and 1,000 jobs once it opens for business, which could be 2023, if planning permission is granted.

However, Manchester Arena’s operator, ASM Global, claims the proposed new arena would be detrimental to the city centre and its hospitality businesses.

ASM Global has been joined in its objection by some of the city’s entertainment, retail, hotel, property, and hospitality businesses, including Manchester Arndale, Aviva Investors, DTZ Investors, on behalf of Printworks and King Street, Living Ventures, owners of Australasia and Grand Pacific, and founders of iconic Manchester venues such as The Oast House and The Alchemist, Manchester Hospitality Network and Prestbury Investments.

In a statement, ASM Global said: “We have clear reasons for opposing a new arena in Eastlands, and have never shied away from making our voice heard.

“We firmly believe that this planning application presents a very real threat to not only our venue and transformative redevelopment plans, but to our neighbouring hotels, bars, restaurants and stores, at what is an already fragile time.

“This application relies on evidence that fails to consider the full picture in Manchester, and during these times it is essential that any major changes to the city are in the best interests for its people and businesses.

“It is also counter to planning policy in the Manchester Core Strategy and the National Planning Policy Framework, which aims to protect city centres and towns from major out-of-town developments.

“Independent analysis clearly demonstrates there is no demand for a second major venue in Manchester.

“To introduce another would risk running the other out of business, taking with it the visitors and spend it positively contributes to surrounding businesses.

“Analysis from leading consultants demonstrates the astounding nature of the market projections included within the planning application – projections which rely on cherry picked data and ignore historical growth.

“We ask that this application receives proper scrutiny, and takes into consideration the concerns of local people and business, especially given the risks it poses to Manchester’s culture, economy and environment.”

In response, Mark Donnelly, OVG International chief operating officer, said: “We look forward to reviewing the existing arena’s full analysis, as the little released so far seems to paint a negative view of the market, and the city’s position within it, which we and expert industry analysts simply do not recognise.

“The live entertainment industry is supportive of our proposals as they foresee ongoing growth in the market post-COVID, with a great opportunity for Manchester to play a leading role in that.”

He added: “Manchester is a city with a proud music and sporting history and a huge appetite for live entertainment, but it’s currently losing market share in the national live entertainment industry.

“A new venue, with world-leading technology, would help to grow the overall entertainment market within Manchester and attract a wider range of larger, and more impressive live events to the city.

“Manchester has developed a thriving tourism and entertainment market and we are completely confident that a new venue at Eastlands would happily co-exist with the current arena, as well as other venues in the city centre and across the region.

“Economic analysis submitted as part of our application shows that a new arena would bring an additional £36m per year in direct annual local spending and at least £1.3bn of additional economic activity from two arenas over 20 years.

“City centre business would account for 85% of visitor expenditure from two arenas, significantly increasing jobs and economic activity compared to the current position.”

A decision on OVG’s Eastlands application is expected in July. If approved OVG says construction could start in October.