Manchester's new arts centre is looking to sell its naming rights to cover the ever-increasing costs of the project which has seen its budget almost double. Factory International is already in talks with 'a number of leading brands' about selling the naming rights for the £210m facility which is due to open next year.
It comes as the major project which is being funded mostly by the government and Arts Council England has called on Manchester council for another £25m. The unique building at the heart of the St John's regeneration area will be the permanent home of Manchester International Festival (MIF) with events all year round, contributing an estimated £1.1bn to the economy over a decade.
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Senior councillors are expected to approve the request for further funding, which will require £15.2m of borrowing, at an executive meeting next week. But local authority leaders say they hope a 'significant proportion' of the capital costs will be recovered by selling the naming rights to the venue.
Speaking at a council scrutiny meeting on Tuesday (October 11), MIF executive director Randel Bryan revealed that the deal is expected to raise at least £25m, which goes above the total fundraising target set for the arts centre. He said: "We've already had really advanced conversations with a number of leading brands that have been in excess of the £24m mark.
"Those deals, for a number of reasons, are still being developed and are still in a pipeline, but it does show that there are sponsors and partners out there that are prepared to exceed our ambitions with naming rights."
There are two ethics committees that will oversee and scrutinise the selection of any sponsors, with deputy council leader Luthfur Rahman sitting on both. It is hoped that the naming rights will be sold before the venue opens in 2023.
Around 70 pc of the proceeds from the deal will go to Manchester council directly with the remaining 30 pc support MIF and the future of the Factory. Councillors on the scrutiny supported the request for further funding for Factory, but asked whether this will be the last time more money is needed.
Carol Culley, the council's deputy chief executive, said the final cost estimates are 'stable', but the volatile economic climate makes it hard to give assurances. She did say, however, that she is confident the Factory will open in June 2023.
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