Plans to build UK’s largest arena in London revealed by Co-op Live owner
The live entertainment giant which co-owns the UK’s largest indoor arena, Co-op Live, is looking at building up to two new venues in London at a cost of around £1.5bn.
Speaking to City AM, Oak View Group (OVG) chief executive Tim Leiweke revealed plans for up to two arenas are currently being considered with the capital being classed as a “high priority location”.
The venues would be more expensive than the £450m OVG and City Football group shelled out to build Co-op Live in Manchester and would also be larger than that arena – which is currently the largest in the UK.
Leiweke said: “I think we will see in the next 12 months a commitment to spend well over another £1.5bn in the UK on new arenas.
“We certainly think London will have to be bigger and better and more expensive. It is London, and things cost more down there. We get it.”
“We continue to be focused on a long-term vision for London.
“I would do a fairly aggressive bet that we have another arena or two in us, in the UK in the near future. I think London is still a high priority.”
Co-op Live is owned by a joint venture between OVG and Manchester City owner, City Football Group.
Pop star Harry Styles is also an investor alongside concert promoters Simon Moran and Denis Desmond.
Co-op Live has a total capacity of 23,500 and has hosted concerts by the likes of Elbow, Paul McCartney and Liam Gallagher.
In comparison, the O2’s capacity in London stands at 20,000.
A new MSG Sphere in London?
The possible plans for at least one new major indoor arena for London come after a bid for the landmark MSG Sphere London was withdrawn in January 2024.
Madison Square Garden Company (MSG) initially put forward the development in 2018 but the scheme was rejected by London Mayor Sadiq Khan and the project was halted.
Asked whether he was worried about taking on the planning system in the capital, Leiweke said: “No because It’s not going to light up like an airport runway at night.
“Everyone tried to make the Jim Dolan and MSG people aware you’re going to have to think about the neighbourhood.
“If you look at the remarkable success of Co-op Live – you don’t hear a negative outcry in this community.
“We’ve honoured and upheld our agreements and so we haven’t experienced any of that.
“I’m not trying to preach to anybody about how to build things, but you’ve got to understand your neighbourhood when you go into a planning process.
“We understand London. We’re proud that we had a history with the O2 and getting that built. I get how to get arenas built in London.”
‘Extra cost of doing business in the UK’
When asked about the impact the government’s Autumn Budget has had on Co-op Live and OVG’s appetite to invest in the UK, Leiweke said: “We are well aware that there is an additional cost of doing business in the UK.
“We certainly have experienced the highs and the lows of Brexit and what we had to fight through when we had roughly 15,000 construction workers in and out of this building [Co-op Live] over four years.
“There will always be swings in every country and in every economy everywhere in the world, and we’re used to that.
“What we’ve tried to build here is a model that will withstand the highs and survive the low that ultimately doesn’t put us in a position of knee-jerking every time there is a downturn.
“We’ve never blinked in our commitment to the UK during Covid, during Brexit and during the first month of trying to get the building open.
“We are doubling down, tripling down, we feel very bullish. This is a good place to do business.”
Who is Tim Leiweke?
Tim Leiweke is the former president and CEO of Anschutz Entertainment Group (AEG) whose UK venues include the O2 in London and AO Arena in Manchester.
While at AEG, Leiweke was responsible for the O2’s transition from the ailing Millennium Dome to become an iconic London venue.
AEG also owns the Los Angeles Kings, the Los Angeles Galaxy, part of the Los Angeles Lakers and the L.A. Live entertainment complex.
It was Leiweke who helped Los Angeles Galaxy sign David Beckham from Real Madrid in 2007.
Asked whether Beckham might be tempted to invest in a new arena in London, Leiweke said: “So David and I are always working on ways to work together.
“He’s off chasing some dreams, including the new football club [Salford City] that him and Gary [Neville] are involved in.
“We will have partners in London in that arena, for sure. One of the things we’ve done is we have partners in every arena we built.
“I’m not sure if that would be good news for David [if he invested], but we continue to have a good relationship with Becs, and I’m a big fan of what he’s done in Miami.”
The American businessman is also a former president and CEO of Maple Leaf Sports & Entertainment (MLSE).
Leiweke founded Oak View Group in 2015 and serves as its chief executive.
In April 2024, Leiweke revealed he was considering building a second glitzy venue in the UK, this time in Hammersmith, arguing the capital is underserved by its current entertainment options.
UK’s largest indoor venue rakes in millions
Leiweke has been speaking to the media to mark the publication of a report by planning consultancy Lichfield which has set out the economic impact of Co-op Live since construction started and it opened its doors.
According to the report, the arena has delivered a £785.5m boost to the UK economy, on a gross value added (GVA) basis, and achieved a total turnover of £1.3bn since ground was broken in 2021.
In its first year of operations, Co-op Live has posted a turnover of £852.2m, according to the report, and a GVA of £455.5m.
In March this year, City AM reported that the arena generated £40.7m from operating activities in the 12 months to 30 June, 2024, while its loss for the financial year widened from £2.6m to £8.6m over the same period.
Arena overcomes disastrous launch
Co-op Live hit national headlines just over a year ago when its launch was delayed several times.
The fall out led to the resignation of boss Gary Roden days after comedian Peter Kay’s opening shows were cancelled as it became clear that the venue was not ready in time.
There was also a backlash over Mr Roden’s comments to the BBC that some small music venues were “poorly run”.
The official opening date of the venue was pushed back several times while construction was still ongoing but was eventually set as 23 April, 2024.
However, power supply issues at a test event featuring Rick Astley on 20 April, which resulted in thousands of tickets being cancelled, the opening headline act by Peter Kay was postponed.
A performance by The Black Keys, which was schooled for 27 April, was also pushed back while Peter Kay’s performances had to be rescheduled for a second time.
A new opening date of 1 May with A Boogie wit da Hoodie was also postponed as well as Olivia Rodrigo and Keane the following week.
In the wake of the delays, Take That chose to move their five concert dates from Co-op Live to rival venue AO Arena in Manchester city centre.
Co-op Live is now run by Rebecca Kane Burton who took over in September last year.
Co-op Live has ‘exceeded expectations’
Andy Burnham, Mayor of Greater Manchester, said: “The economic and cultural impact of Co-op Live has exceeded expectations, and it’s great to see the amount of support the venue has also given to the community in east Manchester.
“Greater Manchester is once again showing its ability to attract the best entertainment talent in the UK to the city-region, while also supporting our artists, with Co-op Live quickly becoming a massive part of this.”
Bev Craig, leader of Manchester City Council, added: “For decades, Manchester has been celebrated for its musical heritage.
“With music in its DNA, the city is further bolstered not just by the global reputation of Co-op Live, but its collaborative and supportive approach to Manchester’s full music ecosystem.
“From linking with local new music venues and artists, to showcasing some of the city’s best new music, it’s rapidly become one of the cornerstones of Manchester’s ongoing legacy.”
Arena highlights UK’s ‘huge potential’
Business and trade secretary Jonathan Reynolds said: “The success of the Co-op Live arena highlights the huge potential of the UK as a centre of entertainment and creativity, attracting top artists from around the world.
“This government is serious about driving further investment into transformative projects like these, that create jobs, boost business growth, and supercharge the economy as part of the Plan for Change, and we are proud to support their delivery.
“That is why the creative Industries have been identified as one of the eight key growth driving sectors in the upcoming modern Industrial Strategy.”