O2 has struck a record £200m deal to retain the naming rights to the London venue the O2 in what is thought to be the largest renewal of its kind in UK history.

The 10-year agreement will extend O2’s relationship until at least 2038. It cements the sponsorship as the second longest-running UK stadium naming rights deal after Arsenal’s partnership for the football club’s London ground,

Under the deal with Anschutz Entertainment Group (AEG), which bought the site of the ill-fated Millennium Dome five years after it was shut following the millennium celebrations, O2 is thought to be paying about £20m a year in the wide-ranging partnership.

This is an almost 50% increase on the annual amount under the existing deal which was due to expire at the end of next year. It is more than triple the £6m a year O2 paid in its initial 10-year deal when the future success of the O2 and surrounding site was far from certain.

“Everyone thought it would never work, that it was crazy building on the site of the Millennium Dome, it was considered the biggest white elephant,” said Paul Samuels, president of global partnerships at AEG International, talking to the Guardian.

“In the first deal we were talking about whether to put in clauses if the O2 couldn’t hit 100 shows a year – last year we did 239. We opened in June 2007 with Bon Jovi and the rest is history.”

Newly published accounts show that the O2 enjoyed the best year in its 19-year history in 2025. Pre-tax profits surged 18% to £76.5m, while revenues climbed 14% to £148.6m, as music fans put aside cost-of-living concerns to see acts including Lady Gaga, Katy Perry, Radiohead and Usher.

The record year resulted in a healthy £27.5m dividend being paid to its US parent company.

“People will opt to save money on other things but still want to go out and spend money on live entertainment,” said Samuels. “And when it comes to technological change like AI, it can change the world but it won’t change the desire for a live experience, like music and sport.”

Samuels said that each time the sponsorship deal nears renewal he receives a lot of interest from brands hoping to take over the naming rights.

However, Gareth Griffiths, director of partnerships and sponsorships at themobile operator’s parent company Virgin Media O2, said the deal had worked so well that it was agreed within an exclusivity period.

A key component of the deal is a 50% increase in the number of priority tickets made available to O2 customers, granting access to tickets to events 48 hours before they go on general sale.

O2 sells more than 1.7m tickets each year through its Priority Tickets programme across the 20 music venues it sponsors in the UK.

“The O2 has been an amazing brand asset for us,” said Griffiths. “Two-and-a-half million people come to the [main] arena each year, and 7.5 million come to everything else that is on offer.

“Music is right in the core DNA of our brand. Customer retention is absolutely crucial and driving loyalty through entertainment is a sweet spot for the business.”

Last year, O2 lost more than 100,000 customers after a backlash following the introduction of hefty price rises.

Last month, it was reported that VMO2’s joint owners – Liberty Global and Telefonica – want to cut £600m in costs to calm investor fears over a £22bn debt pile.

“Every pound we spend we do so very carefully,” said Griffiths. “This has been such a big success for the brand.

“Churn is still one of the most important metrics in the business, it is about keeping hold of valuable customers. Both of our shareholders are absolutely fully committed to this.

“This is a 10-year investment in the UK … a huge sign of intent. It has long been proven that growth comes from investment in your brand.”