City have swept past Manchester United in the pay league for players, the club's annual report today revealed. The figures also show details of City's astonishing spending spree on players and salaries which have led to record losses of £121.3million. Although City's turnover increased by 40% to £125m this has been swamped by total salary costs of £133.3m, a £50m rise on a year ago. That puts City - bankrolled by Abu Dhabi-based owner Sheikh Mansour - ahead of United, whose wage bill is £123m, and Arsenal (£110m) and closing in fast on Chelsea (£142m). City chief executive Garry Cook said the losses "should come as no surprise" but that the club would now scale back on new signings. He said: "It is safe to say that player acquisitions on the scale we have seen in recent transfer windows will no longer be required in the years ahead now that we have such a deep and competitive squad. "In 2009-10, we narrowly fell short of our goals on the pitch, but still achieved nine club records including our best-ever result in the Premier League." Cook said the squad was "in ideal shape" under Roberto Mancini's management. The annual report also shows that the club's net spending on transfers has totalled a staggering £403m since 2008. City's net spending this summer was £96.6m - they actually spent around £126m but recouped £30m from the sale of Robinho and other players. As of June 1 2009, £185.2m had been spent on transfers and this was followed by a further £145.4m in the following 12 months offset by sales totalling £24m. The good news for City is that their turnover has also risen hugely, mainly due to a large increase in commercial income, from £87m to £125m. The spectre of UEFA's new financial fair play rules are looming on the horizon however, where in four years' time clubs in European competition will only be allowed to spend what they earn. City privately concede it will be a challenge to get their costs down to levels acceptable to UEFA but believe that the increase in commercial revenue, the chance of Champions League income and a possible drop in future wage costs could make it possible. The club believe they have had to pay over the odds to attract players of the calibre of Robinho but that once they are established as a major European force they would not have to pay such a premium. They are also giving serious consideration to expanding the Eastlands stadium. Given that tickets were still on sale today for Sunday's match with Newcastle, however, club chiefs would need to be convinced there would be a demand for the extra seats. There have also been suggestions that Sheikh Mansour could use his Abu Dhabi connections to ensure massive sponsorship deals for the club, but UEFA's financial fair play regulations would block that. The rules state clubs must "demonstrate the fair value" of sponsorship deals and corporate hospitality income and prove they are getting a market rate in line with other Premier League clubs.
