London’s O2 Arena commits to funding grassroots venues
Another lifeline is being thrown to Music Venue Trust to support grassroots venues in the UK.
London’s O2 Arena has announced a new funding initiative that will direct money back into grassroots music venues across the UK. The plan forms part of a three-year partnership with the Music Venue Trust (MVT), the charity that supports small live music spaces.
Exact terms of the agreement have not been confirmed, but the O2 will donate a portion of revenue from concerts to MVT, as well as making a donation each time an artist headlines the arena for the first time. There were more than 50 first-time headline shows at the O2 in 2025 alone, and to kick off the initiative, the venue is also making a “six-figure donation” to the charity, according to The Guardian.
The O2 has an official capacity of 20,000 and regularly hosts some of the biggest tours in the country. Emma Bownes, senior vice-president of venue programming at AEG Europe, the arena’s parent company, said, “Every artist who headlines the O2 for the first time reflects the strength of that grassroots network … we’re investing in the pipeline that nurtures the next generation of breakthrough artists and ensures they have a place to start.”
Grassroots venues in the UK continue to face significant challenges. Since 2023, more than 150 venues have closed. From rising energy bills to struggling to recover from the impact of Covid, there are numerous factors that have threatened the sustainability of smaller venues. These closures affect artists at the start of their careers, jeopardising the invaluable opportunity to tour small towns and local communities, where artists begin to truly make a name for themselves.
The Music Venue Trust has long advocated for stronger support from the industry. One proposal has been the introduction of a £1 live music ticket levy at larger venues, designed to feed back into smaller spaces. Some major venues are already taking steps to implement this approach, including the Royal Albert Hall, which has announced plans to introduce a ticket levy to support grassroots music venues.
Artists themselves have also contributed directly. Sam Fender donated £100,000 from his arena tour to the Music Venue Trust, and later gave his full Mercury Prize winnings to the charity. Last year, Coldplay pledged to donate 10% of earnings generated by their tour to MVT as well. But, it has been noted that, while major artist donations are appreciated, they do not equate to a steady flow of revenue for grassroots venues that would allow for long-term sustainability.
Mark Davyd, head of the Music Venue Trust, described the O2 funding as “hugely significant and welcome” and said the partnership sets “a powerful new benchmark for the industry,” challenging other arenas to follow suit.
By redirecting revenue from major shows into grassroots venues, the O2 is helping to sustain the early stages of live music. It also highlights that arena-level success depends on the survival of the smaller venues that nurture new talent.