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Nov 18, 2011

Man City announce record losses

Manchester City have announced annual losses of £194.9 million, which is the highest ever recorded in English football.

• Duo pen new City contracts
• Mancini eyes De Rossi deal
• Zanetti talks up Tevez to Inter move

The colossal sum shows the depth of the investment made by Sheikh Mansour to transform City from a lower-mid table outfit in 2008 to their present status as Premier League leaders.

Whilst accepting the vast scale of the losses, City officials are adamant it marks a low point in their financial graph and from this point forward, they will be embarking on a significant upward trend.

''Our losses, which we predicted as part of our accelerated investment strategy, will not be repeated on this scale in the future,'' said chief operating officer Graham Wallace.

Thankfully for City, the figures will not be taken into account used as part of UEFA's Financial Fair Play regulations as they fall outside the accounting window.

Indeed, as ''additional exceptional charges'' of £34.4 million have been added to a net loss of £160.5 million for the 2010-11 financial year, it could be argued the club have been quite astute in their planning.

It is also easy to see why the club are so strong in defending their present position as the mammoth sponsorship deal with Etihad Airlines, said to be worth £35 million-a-year over the next decade, plus the riches on offer in this season's Champions League, will have begun to impact on City's accounts in 12 months' time.

The Blues are also pointing out that commercial revenue has risen 49.7% to £48.5 million and TV rights, thanks to the club's third place Premier League finish, winning the FA Cup to end a 35-year trophy drought and a run to the last 16 of the Europa League, have increased 27.4% to £68.8 million.

Overall turnover was £153.2 million, breaking through the £150 million barrier for the first time.

''Look at the companies Sheikh Mansour has invested in,'' a City official told Press Association Sport. ''He simply does not take on failing businesses. He wants Manchester City to be as financially sustainable as possible. That has always been the situation.

''With our best ever result in the Premier League, qualification for the UEFA Champions League, and an historic FA Cup campaign that delivered the Club its first piece of major silverware in 35 years, there is much to be proud of,'' said chairman Khaldoon al-Mubarak.

''However, we should not underestimate the club's other major achievements in terms of its continued commercial performance, groundbreaking partnership initiatives, expanding contribution to the community, and independent recognition for the quality of our facilities and match day offerings.

''From the perspective of the board and executive leadership team, these broader achievements are equally important signs of progress in the ongoing evolution of Manchester City and are particularly encouraging when combined with the club's historic performance on the pitch.

''It is important to recognise that much of the work covered in this report occurred under the stewardship of Garry Cook.

''I want to take this opportunity to formally thank him for his contribution to the extensive transformation of the organisation.

''Now that we are witnessing progress, both on and off the pitch, it is more important than ever to redouble our efforts towards achieving our ambition to establish Manchester City as a more successful, sustainable and internationally competitive football club that remains at the heart of the community in which it is based.''

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