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What Manchester's 'super-profit' deal with City owners has paid out so far

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www.bbc.co.uk

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Image shows Sheikh Mansour bin Zayed Al Nahyan, wearing a Man City scarf, and standing in the stands at the Etihad stadium.

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Manchester City Council's "super-profit" deal with club owners yields under £3m

Overview

Manchester City Council has received just under £3m from a 2014 profit-sharing deal linked to developments built on its land in Ancoats and New Islington by Manchester City owners Abu Dhabi United Group (ADUG). While the council defends the partnership as a successful regeneration project worth £1.25bn, experts and reports highlight commercial secrecy and concerns over transparency regarding whether the council secured the best possible financial return.

Key points

  • Manchester City Council has made just under £3m from an overage deal struck in 2014 with Manchester City owners ADUG.
  • The agreement involved leasing council-owned land in east Manchester for developments under the Manchester Life partnership.
  • Critics and academic reports point out that commercial secrecy makes it difficult to assess if the council received true value or proper shares of profits.
  • The council recently acknowledged past weaknesses in documentation and monitoring surrounding historic overage arrangements.
  • Supporters of the deal argue it brought vital investment after the 2008 financial crash, delivering about 1,500 homes and widespread regeneration.
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