City announce massive losses

Premier League champions Manchester City have announced losses

of ?97.9million for the 2011-12 season – but their turnover is on

the up.

City announced their latest results on Friday evening,

confirming losses had been reduced from ?197.5million to

?97.9million and turnover increased to ?231.1million.

It confirms the Blues’ emergence as one of Europe’s elite clubs,

despite obvious setbacks this term, including another early

elimination from the Champions League and Sunday’s defeat to

Manchester United, which leave City six points adrift in the

Premier League title race.

However, even chairman Khaldoon Al Mubarak acknowledged the most

significant part of the year came in those two minutes of

injury-time on May 13, when Edin Dzeko and Sergio Aguero scored the

goals against QPR that won the championship and ended the City

curse where anything that can go wrong probably will.

“2011-12 will always be remembered as a particularly significant

year in the history of the club, a season when Manchester City

demonstrated an ability to win in even the most challenging of

circumstances,” said Al Mubarak.

“We experienced the Champions League, won the Premier League and

with two goals in added time, redefined what is typical of City for

a generation of supporters.”

Although the financial figures are no match yet for Manchester

United, whose latest reported turnover was ?320.3million, it shows

just how must progress City have made.

Little wonder officials have declared themselves delighted with

the performance.

And they are confident even the huge losses confirmed today will

not have an impact on their ability to meet UEFA’s strict Financial

Fair Play guidelines as ?15million comes from infrastructure and

youth development costs.

More importantly, approximately ?80million comes from contracts

that pre-date 2010, from which City expect to get some kind of


While the results, to May 31, 2012, show marginal increases in

gate receipts and TV revenue, it is in the commercial sector where

City are making huge gains.

Revenue has gone up from ?64.7million to ?121.1million,

underlining City’s increased growing global exposure, which is

being shown in all areas, from merchandise to club tours.

Although the enormous ?400million, 10-year contract with Etihad,

who now have naming rights to both the stadium and the entire

campus, on which work began in the autumn, raised eyebrows, City

believe history will show it to be a well-structured financial


Other contracts, such as a new kit manufacturing contract with

Nike, point to increased commercial revenue in the years ahead.

Meanwhile, City’s overall wage bill has risen from ?151.6million

to ?178.1million.

City’s annual statement also confirms the “capital base of the

club has also been strengthened through the issuing of ?169million

in new equity during the year, avoiding debt based funding and

continuing to ensure that the club is virtually debt free”.

Clearly, the largesse of owner Sheikh Mansour is still required

to make the club viable in the short term.

However, it is the state-of-the-art City Football Academy (CFA)

project across the road from the Etihad Stadium, on which the club

expect to build a financially sustainable business.

“The CFA will strengthen the club’s youth development and

training capabilities, enable more players to move through the

academy and elite development squads into the first team in the

future, while bringing all of the club’s operations together on a

single site within the Etihad Campus,” said Khaldoon.

Little wonder new chief executive Ferran Soriano is so excited

about the future.

“Since joining Manchester City in September 2012, my first

priority has been to deepen my understanding of the club, its

history and its operations,” he said.

“What I have found is a club on the verge of a historic

transformation, reinforced by a genuine commitment to doing things


“It is a club with a rich history and the potential for an even

brighter future.”

It is hard to envisage further failure on the European stage

being tolerated under Roberto Mancini’s stewardship and the club

are privately suggesting there will be no transfer window


But, with the likes of Pep Guardiola, a man Soriano knows so

well from their time together at Barcelona, it is evident no return

to obscurity is envisaged any time soon.

“Having returned to the summit of English football in 2011-12,

the club has earned the chance to compete for a place as one of the

biggest and most successful globally in the years ahead,” Soriano


“It is an opportunity we will work hard at to achieve.

“There are many reasons to be optimistic. The club has assembled

a world-class team on the pitch.

“Now, however, it is vital that we extend this winning mentality

and commitment to excellence across all aspects of our