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

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What Manchester's 'super-profit' deal with City owners has paid out so far
Image · BBC Sport Football

What the report says

Manchester City Council has received just under £3m from an overage arrangement tied to property developments on council-owned land in east Manchester, according to BBC Sport Football. The payments come from schemes linked to Manchester City owners Abu Dhabi United Group (ADUG), through a 2014 deal covering land in Ancoats and New Islington. The council says it expects another payment soon and argues the regeneration has delivered significant value for the city.

The arrangement sits within the wider Manchester Life partnership between the council and ADUG, formed to develop sites near the club’s stadium. The BBC reports that the original plan envisaged more than 6,000 homes and up to £1bn of investment, while the projects have so far delivered about 1,500 homes across nine sites as part of a £1.25bn regeneration programme. The council says the overall return works out at about £26,000 per home and reflects strong land value growth after the 2008 financial crisis.

However, academics and critics quoted by the BBC say the commercial terms are difficult to assess because key details were not made public, making it hard to judge whether the council secured the best possible deal. The report also notes a July council review that found weaknesses in how some historic overage arrangements were documented and monitored.

The story comes amid renewed scrutiny of Manchester City and its owners after the Premier League found the club guilty of 115 charges, which the club denies and plans to appeal. Separate from that process, the BBC says the council’s partnership with ADUG is now facing closer attention because of the wider controversy.

Read the full report at BBC Sport Football →

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