New research has suggested a controversial second arena in Manchester would bring “huge benefits” to the city centre economy – and that it could run alongside the existing venue “without undermining its growth”.

The independent research commissioned by Oak View Group (OVG) – the firm behind plans for the 23,5000 capacity arena next to the Etihad Stadium – claims that by 2023, the city centre will receive £95m of the total £165m spend of audiences to both arenas.

The owners of the established Manchester Arena recently announced plans to transform its own venue, and voiced concerns over plans for a second large-scale venue in the city, which they feared would mean a negative impact on city centre commerce, leisure and hospitality.

But the new research said two arenas offering “more diverse programming and world-class visitor experiences” would enable the city to recapture fans currently choosing to travel elsewhere.

Mark Donnelly, OVG’s COO, said: “We’re fully confident that Manchester’s market is strong enough to support two arenas, and that’s why we’re committing to a £350m private investment.

“The detailed economic analysis by Ekosgen has been fully corroborated by this new independent public opinion research which vindicates our confidence in the city. It also shows the wider benefits the arena will bring to the city centre in extra visitor spend.

“We’re excited to contribute to the growth of Manchester as a city region and support the expansion of the city centre along the Eastern Gateway from Piccadilly Station to Etihad Campus. We believe the Eastern Gateway can have a similar contribution to that made by Salford’s Media City in the west.”

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Plans for the new arena on the Etihad Campus are expected to be considered by Manchester City Council in September, with OVG set to make a £350m investment.

The firm said the move, which would mean the most expensive arena ever built in Europe, will create thousands of jobs from autumn this year.

OVG, the US-based global sports and entertainment company founded by Tim Leiweke and Irving Azoff in 2015, has now also received the backing of several city business leaders for the plans.

The findings of research carried out by Amion Consulting and The Audience Agency included:

• The potential for an additional 2m annual arena visits to both Manchester venues by 2035 from people living within 90 minutes of the city
• A ‘stress tests’ worst-case growth scenario showing Manchester’s potential “greatly exceeds” minimum growth needed for two arenas to operate side-by side successfully
• That Manchester city centre will receive £95m out of the total audience spend of £165m by visitors to two arenas each year from opening in late 2023. That will mean £25m for city centre bars and restaurants
• That 30% of visitors surveyed said they would probably stay overnight in Manchester after an arena event, despite living within the 90-minute catchment, while 70% of those surveyed would spend money on food and drinks in the city before events, with 49% doing so after an event
• That in the year before lockdown, 20% of people chose to visit one of Birmingham’s two arenas or one of London’s two arenas. A new arena would mean matching the rival cities’ offer
• The population within the catchment is projected to grow by 8% by 2035 which will provide additional market growth
• Worst-case scenario modelling, which took assumptions such as all arenas in the Manchester catchment area, including Liverpool, Leeds and Sheffield, hosting the exact same event programme as Manchester arenas. Even in this scenario, demand would still give “considerable headroom” to the original attendance forecasts

Big music tours will be the focus of the new arena, which would have the biggest standing floor area at any UK arena, able to accommodate over 10,000 people.

According to OVG, the new arena would also be designed to host a “wider range” of events – from international sports tournaments to family shows to emerging formats like e-Sports.

If the new facility is built, Manchester would host the two biggest arenas in the country, with the existing Manchester Arena being able to house up to 21,000 people and the 02 in London 20,000.

The research comes after various groups voiced their opposition to the proposals, arguing that stopping the new arena proposals would mean protecting the city centre, and that the “negative impact” would be “far reaching”.

A spokesperson for DTZ Investors, which owns the Printworks Manchester leisure complex, said: “With many long-standing city centre businesses struggling, we must stand together and protect our existing offering.

“The relevant authorities must consider all evidence in the context of the National Planning Policy Framework – which seeks to protect city centres – and come to a proper decision on whether a scheme of this scale is justifiable. The picture so far suggests that the negative impact to city centre commerce, leisure and hospitality will be far reaching.”

The plans have also received fresh backing from a number of city business figures, including Mike Blackburn, chair of Marketing Manchester.

He said: “We are determined to ensure Manchester is a top global city. This means creating world-class leisure experiences that are a joy to those who live here but that also resonate further afield, attracting people in to ensure our city centre thrives. This is precisely what the best arenas do, just as this research shows.

“A second arena will grow the overall economy and it will bring more visitors and more much-needed expenditure for city centre shops, restaurants, clubs and bars alike. And it will serve as a reminder to those aware of our cultural heritage, that Manchester remains a globally significant entertainment destination.”

Marcello Distefano, managing director of San Carlo Restaurants, said: “I would love to see both arenas succeed as I passionately believe in Manchester and its vision to see the city extend its visibility on a global stage.

“With six venues across the city we want to see an increase in footfall and welcome this independent survey that confirms the hospitality and leisure sector will benefit.”

Matt Townley, general manager at the Dakota Hotel in Manchester, said: “It’s clear there is significant demand for two arenas and the entire economy will benefit from a greater and more diverse mix of events.

“With Oak View Group’s world class venue, we’ll be a city with two large arenas and back where we should be – at the forefront of global entertainment.”