UK arena bosses have weighed in on the sector’s biggest issues in 2025 – and debated whether the stadium boom is hurting the indoor circuit.

The arena market boasts an abundance of top talent, with upcoming tours by stars such as Sabrina Carpenter, Billie Eilish, Teddy Swims, Gracie Abrams, Usher, Pulp, Andrea Bocelli, Chase & Status, Bryan Adams, Olly Murs, Katy Perry, Tyler, the Creator, Tom Grennan, The Lumineers, Lil Baby, Jamiroquai, Central Cee, Busted vs McFly and Kylie Minogue.

But with Post Malone becoming the latest A-lister to announce a summer stadium run, joining around 30 artists from Oasis to Beyoncé in headlining music’s biggest stages, does something have to give?

“The fan demand for live entertainment is stronger than ever, and although we are always competing to some extent, there’s no harm in a wider choice for fans across the board,” says Guy Dunstan, SVP and GM at Manchester’s Co-op Live (cap. 23,500), speaking to IQ.

“There will always be differing levels or artists taking to different sized venues, and at Co-op Live we’re even seeing some of the staple outdoor artists like Bruce Springsteen, Eagles and Pearl Jam opt to return to an indoor venue of our scale and size. It’s testament to the strength of the industry, that these events can co-exist.”

Gemma Vaughan, GM of Manchester’s 23,000-cap AO Arena is equally confident there is enough room for everyone.

“Manchester is lucky enough to be a city that’s home to two arenas, a plethora of smaller independent venues and two stadiums that also host live events,” she says. “We’ve been at the heart of Manchester’s music scene since 1995, we’re confident we’ll continue to thrive alongside all of our neighbours.”

“Fans only have a limited amount of discretionary spend”

Indeed, Steve Sayer, SVP and GM at London’s 20,000-cap The O2, says it is shaping up to be a year to remember for both stadiums and arenas.

“With stadium gigs, it tends to be a little bit cyclical: you’ll have a strong year and then the next year isn’t quite as strong, so it could potentially be perceived as having an impact on arena shows,” he contends. “But we’re certainly confident when we look at the diary – and not just this year, but next year as well – that the show count forecast remains strong.”

North of the border however, Rob Wicks, MD of Aberdeen’s P&J Live, admits to harbouring reservations on the subject, stressing: “Fans only have a limited amount of discretionary spend.”

Nevertheless, Wicks, who lists the cost of touring, the cost of living crisis and closures of grassroots venues among his chief concerns for the business, reports the 15,000-cap Scottish arena is still on track for a stellar year.

“The venue sold 31% more tickets in 2024 than it did in 2023 and is on track for a similar increase in 2025, which is really encouraging,” he tells IQ.

John Drury, VP and GM of London’s OVO Arena Wembley (cap. 12,500), sees both sides of the argument, but tells IQ it’s a case of so far, so good.

“There’s no doubt that a rising number of outdoor shows and festivals can widen the market and lead to some challenges in arenas, but so far for us at Wembley we’re not seeing a downside,” he reports. “2024 was a record-breaking year for Wembley and 2025 is shaping up to be as strong, if not stronger. Significantly, we hosted over 50 first-time headline acts last year, which shows the current strength of the arena market in the UK.”

“The arena landscape is really strong in comparison to 2024,” nods Utilita Arena Newcastle GM Caroline James. “Maybe it is already having a positive impact?”

“Anything that brings massive profile to the sector is a good thing – particularly if it reminds people to buy tickets for other gigs!”

Dom Stokes, general manager of Utilita Arena Sheffield (cap. 13,600), shares similar sentiments – suggesting that a rising tide lifts all boats.

“I think it’s positive,” he argues. “Anything that brings massive profile to the sector is a good thing – particularly if it reminds people to buy tickets for other gigs! A strong stadium season can lead to offshoot events in the arenas. In Sheffield, we have often found an opportunity to use our huge space for rehearsals.”

Stokes describes 2025 as a “transitional year” for Utilita Arena Sheffield, which joined the ASM Global venue network last month alongside Sheffield City Hall.

“However, product is strong and the investment planned in both front of house and back of house areas is very exciting,” he adds. “Ticket sales for all our genres are strong, but ticket buyers continue to buy a long time in advance or very late. There doesn’t seem to be very much in between.”

It is a similar story at the 11,000-cap Utilita Arena Newcastle, where James projects a “fantastic year both for private events and live events”, but points out that ticket trends “seem to be all or nothing”.

“Late purchasing is still very apparent,” she advises, adding that an increasing number of events are going to the bigger cities and missing regional venues.

“UK arenas generated £100 million in VAT in 2023: £60m on ticket sales and £40m on ancillary income”

OVO Arena Wembley’s Drury goes into detail on the issues at the top of his in-tray right now as chair of the National Arena Association.

“Since coming back from Covid, costs have continued to rise, which puts pressure on our margins,” he notes. “We’re also of course aware that production costs are also rising, putting the squeeze on from all angles. To add to this, we are concerned that a proposed increase in business rates designed to hit the major warehouse operators of online sales will also affect arenas disproportionately – we feel that an adjustment of the proposed raises should be made for our businesses.

“We of course already contribute massively to the government coffers: we employ huge numbers locally, contribute millions of pounds to our local communities – studies show £100 per person average spend in the community from each arena show – and also pay a big part in positively impacting the mental wellbeing of our millions of guests.”

Drury also backs trade body LIVE’s calls lower VAT rates in line with many other European countries “where 20% is unheard of”.

“UK arenas generated £100 million in VAT in 2023: £60m on ticket sales and £40m on ancillary income,” he says. “A cut would help the grassroots sector massively but also if we were able to divert a portion of our VAT income back to those most in need in our industry we could and should pretty much become a self-financing industry.

“If, for example, we could plough back 5% of the VAT we raise on tickets as part of a wider VAT cut for our events, that would have meant £3m going back to grassroots in 2023 alone.”

“Grassroots venues are an incredible part of the broader live music ecosystem”

In late 2024, IQ reported the UK live music industry was edging towards a deal which would see more stadium and arena tours agree to include a contribution towards grassroots support after a meeting with culture minister Chris Bryant MP.

The ministerial roundtable followed the government’s plea to the live industry to introduce a voluntary ticket levy to support the grassroots music sector in its response to the Culture, Media and Sport (CMS) Select Committee’s report.

“What the minister asked for – and was looking for – was momentum,” says The O2’s Sayer. “From our perspective, we’ve always said that grassroots venues are an incredible part of the broader live music ecosystem. We’ve got a collective responsibility to ensure that we can put together a solution that’s equitable and works and actually delivers funds to the venues and the artists that really need that support.

“From what I can see, and the conversations that I’m having, I’m confident there will start to be momentum this year around the levy and hopefully, over time, that will start to generate the sort of funds the grassroots desperately needs.”

The struggles of the grassroots sector are also at the forefront of Vaughan’s mind.

“It’s no secret that rising touring costs are proving challenging across the live entertainment industry, but I think the more relevant question is how does that affect our grassroots musicians and venues?” queries the AO Arena boss. “If these artists are unable to perform, how can they graduate through the talent pipeline and become our next headline act?

“As one of the UK’s largest entertainment venues, we’re extremely conscious of our position, and this is something we’ve been working closely with Music Venue Trust and Manchester’s wider community as a whole. Especially as we turn 30 this year, it’s more prevalent than ever to ensure that we’re protecting grassroots from the top down, or there will be no arena sector for us in the next 30.”

“We’re seeing fans wanting a more focused consumer experience”

On the programming front meanwhile, Vaughan detects a consumer shift in genres, particularly K-Pop, where “Manchester is rivalling the likes of London when it comes to talent and demand”.

“There’s also been a substantial shift in what our fans expects not only from their favourite artists, but venues too,” she continues. “Fans are looking for authentic experiences that go beyond their Instagram stories, they’re wanting connection. Experiential experiences are not to be overlooked, so that will be another key priority for us this year.”

Across the city at the rival Co-op Live, Dunstan is revelling in the arena’s first full year of operation, with UK arena exclusives from the likes of Bruce Springsteen and The E Street Band and Robbie Williams on the horizon in H1 2025.

“The appetite for content has been immense,” he observes. “Amongst it, we’re seeing fans wanting a more focused consumer experience, from quality food and drink, to pre- and post-show entertainment, well beyond VIP and hospitality.”

He concludes: “There’s significant attention on arenas and the part they play in the wider music ecosystem; perhaps more than ever, with vital conversations around ticket pricing, support for the grassroots sector, ticket levies and more.

“It’s a very exciting time to be part of the industry, and to work collaboratively to balance the various needs of all levels with an increase in fan experience and expectation. It’s this that rings loudest, with fans rightfully wanting the best possible experience in exchange for their hard-earned money.

“It’s great that things are being shaken up, and we’re proud to be at the forefront of many of these timely conversations and their subsequent changes.”

• ILMC’s annual deep dive into the arena sector, The Venue’s Venue: Anchor Topics, will take place at the Royal Lancaster Hotel at 9.45am on Thursday February 27.

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ASM Global has been appointed to operate Utilita Arena Sheffield from January 2025, following a procurement process.

The 12,700-capacity venue first opened in the South Yorkshire city in 1991 and is the first UK arena to come to market for tender in some time.

Forthcoming concerts and events at Utilita Arena Sheffield include Peter Kay, Bill Bailey, Take That, Girls Aloud, Bryan Adams, Matchroom Boxing, Premier League Darts and Liam Gallagher. The venue is also home to Sheffield ice hockey team, the Steelers.

Under its new management with ASM Global, the venue will see significant investment into guest experience at every level, including hospitality and premium, according to a release.

The senior management team and all Utilita Arena staff will move to ASM Global under TUPE regulations.

“With the city’s rich musical history and our reputation for hosting major events, it’s evident that music runs through our blood”

“Sheffield is a city with a rich cultural heritage,” says Chris Bray, president of ASM Global Europe. “It’s known and loved for producing some of the UK’s most exciting musical talent who’ve gone on to put Sheffield on the map on a global scale. With a history of being an events city, we are delighted to be working with the council to continue to bring major events to Sheffield. Our goal is to ensure the venue is a must-play for world-class artists, and that the content is diverse, exciting and world-leading. We have exciting plans for reimagining the customer experience, too, and are looking forward to getting better acquainted with the city very soon.”

Councillor Richard Williams, chair of the communities, parks and leisure committee at Sheffield City Council adds, “This is a major step forward in our ambitious plan for the city and entertainment facilities. Though we are incredibly proud of the Arena and our current partnership with Sheffield City Trust, this new investment will allow us to compete on a global scale.”

Councillor Tom Hunt, Leader of Sheffield City Council said, “Coming on the back of Sheffield hosting the MOBO Awards and with the city’s rich musical history and our reputation for hosting major events, it’s evident that music runs through our blood and this partnership with ASM Global and Utilita Arena Sheffield is another example of our ambition for this city.”

Utilita Arena Sheffield joins ASM Global’s network of more than 350 venues around the world. In the UK, the firm’s suite of venues includes AO Arena in Manchester, first direct Arena in Leeds, OVO Arena Wembley, Utilita Arena Newcastle, P&J Live Aberdeen, Olympia London, York Barbican and Whitley Bay Playhouse.

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