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
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
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
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
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