I've written this on here before, but it's something I was told around 15 years ago, at the time when FC were in full 'nauseating and entitled badgering of the Council' mode with regard to help for their own stadium. The source was someone in an important role in the Council apparatus.
MCC has always been rather sore that Manchester United bears the city's name and has become an institution with huge worldwide fame, but the location of the ground limits the Council's benefit from that. It was hoped in the 1990s with the construction of the Commonwealth Stadium (previously mooted as a potential Olympic or national stadium) that they could build an 80,000 facility and attract the real MUFC to use it at least some of the time, but that didn't work out.
Unfortunately, some within MCC saw FC as a possible way to derive more benefit from a connection with a United theme. It beggars belief to me that these tinpot tribute-act shitehawks have been given the level of support they've received, but that's the original reasoning from within MCC.
I believe that Pat Karney was a prime mover in the idea of assisting the vanity project, with heady aspirations back then that they could get into the Football League and maybe even reach the Championship. Comically delusional, but it was believed. The execrable David Conn deserves a mention, too, for his patronage did a great deal to legitimise these grasping and inconsequential nobodies.