Arena question explained

Building a modern arena in the heart of Tyneside to rival some of the UK’s best has been a long-held ambition for our region’s leaders, writes Local Democracy Reporter, Daniel Holland.

Plans to construct a world class concert venue on the Gateshead Quayside have been kicked around for years, without ever coming to fruition.

This week, however, mayor Kim McGuinness signalled her intent to ensure the dream does, at last, become a reality – pledging £24 million to help kickstart what is arguably the North East’s most prominent stalled development.

The cash will be used to deliver critical infrastructure works on the huge patch of vacant land nestled in a prime spot between the Glasshouse music hall and the Baltic art gallery.

It is hoped that the public investment will “derisk” the project and make it a more attractive proposition for a private firm to run a 12,500-15,000 seat venue that would be more capable of attracting the world’s biggest acts.

If it did go ahead, however, that raises big questions for the existing Utilita Arena on the other side of the Tyne.

The future of that 1990s-built site has been up in the air for some time and, previously, the Gateshead arena was definitely viewed as a bigger, state-of-the-art replacement for it.

The owners of the existing arena had been signed up to manage the Gateshead complex, under an earlier iteration of the development.

Once the Gateshead site opened, ASM Global planned to close down the Newcastle arena and explore alternative uses for it.

But that version of the Quays regeneration vision, which also included an international grade conference centre, failed to progress and bosses have gone back to the drawing board.

With its estimated costs having escalated well beyond the original £260 million, the plans are being redrawn and will focus on a proposed arena – as well as an outdoor performance space next to the Glasshouse and an urban park connecting the riverside to the Baltic Quarter.

Assuming the mayor’s funding is signed off by the North East Combined Authority (NECA) cabinet next week, a new procurement exercise to find an investor-operator for the arena is expected later this year.

According to a NECA report, four “major international arena, events, and ticketing companies” have expressed an interest in the site.

It states: “Respondents identified the North East as an underserved region lacking a modern, state-of-the-art arena, with clear potential to grow market share and attract top tier talent. Ongoing engagement with the companies is planned to build upon these insights and interest.”

There are clearly a couple of possible scenarios that could play out here.

Legends Global, which is now the Utilita Arena’s owner after AMS was acquired in 2024, could seek to become the operator of the new site and make the switch to the modern Gateshead venue as had previously been planned.

Or, if it chose not to bid or if another firm was successful instead, the company would then be left with a decision to make over what to do with the Newcastle venue, which has recently hosted the Mercury Prize.

Ms McGuinness told the Local Democracy Reporting Service this week that there “is space for both” arenas on Tyneside.

Cities including Manchester and Birmingham do have two indoor arenas, however there would clearly be a level of doubt over whether the Utilita Arena would remain viable if a new, rival venue opened on the Quayside. 

But Legends Global did recently announce a £65 million investment plan that would extend and refurbish the current venue, upping its capacity by 20% and revamping its bars and dressing rooms.

The future of the Utilita Arena also has significant implications for the Forth Yards development area to the west of Newcastle city centre, where Newcastle City Council wants to see 2,500 homes built.

As things stand, the Forth Yards masterplan does not assume that the arena will disappear and states that new housing on the Quayside West plot next to it will “need to allow for the continued operation of the Arena as a leisure venue and associated noise and activity”. If it were to close, however, this would open up another large piece of land for new housing.