City reports loss of more than $85M
Manchester City lost more than $85 million in a year, exceeding the amount allowed under UEFA's Financial Fair Play rules.
The Abu Dhabi-owned team announced Wednesday that it lost 149.5 million pounds ($248 million) between 2011 and 2013, the first FFP monitoring period, as it spent heavily to transform the club into a European power.
UEFA is only allowing losses of up to 45 million euros ($62 million) in that two-year period. Clubs exceeding that amount risk being sanctioned, and could be banned from playing in Europe.
There isn't a single mention of FFP compliance in the annual report that was released Wednesday.
To comply with FFP, City could point to its spending on infrastructure, the cost of long-term player contracts, and losses coming down.
After losing 97.9 million pounds ($162 million) in 2011-12, City posed a loss of 51.6 million pounds ($85 million) in 2012-13 and revealed that net spending since then in the summer transfer window was 84. 1 million pounds ($139 million).
The 2012-13 losses would have been more than the previous year had City not generated 47 million pounds ($78 million) by selling ''intellectual property,'' which could include its branding, to ''third parties'' or ''related parties.''
Salaries jumped by 15 percent to 233 million pounds ($386 million) in 2012-13.
But City disclosed that it is now operating with ''zero financial debt,'' while announcing that turnover has risen to 271 million pounds ($449 million).
''Growing revenues and controlled expenses are bringing the club to break-even in the immediate future and profitability thereafter,'' chief executive Ferran Soriano said.
The first UEFA decisions on FFP compliance are expected during March and April.