Manchester City say they have almost halved their losses for the second consecutive season, posting a net loss of £51.6m, down from £97.9m. The report for 2012-13 also reveals the club generated an annual turnover of £271m, second highest in the league.
This was despite wages rising from £201.7m to £231.3m, a figure that is believed to have been swollen by a huge, undisclosed payment to Roberto Mancini who was sacked as manager in May last year.
Manchester City say they have almost halved their losses for the second consecutive season, posting a net loss of £51.6m, down from £97.9m. The report for 2012-13 also reveals the club generated an annual turnover of £271m, second highest in the league.
This was despite wages rising from £201.7m to £231.3m, a figure that is believed to have been swollen by a huge, undisclosed payment to Roberto Mancini who was sacked as manager in May last year.
The surge in revenues was largely down to the sale of image rights to an external company for £24.5m. There was also a separate sale of other ‘intellectual property’ to the New York City FC and Melbourne Heart franchises and Manchester City Ladies FC.
As part of this move, New York and Melbourne will have access to such things as City’s international scouting network and commercial database, services that City thought that it was necessary to charge for.
The club, who posted losses of £197.5m back in 2011, have also now paid off all their debts, which were £58m a year ago. Total losses since Sheikh Mansour took over in 2008 are £559m. He put in an additional £190m in the form of shares in the last financial year, making his total contribution £1bn by May 2013.
Chief executive Ferran Soriano said: “Growing revenues and controlled expenses are bringing the club to breakeven in the immediate future and profitability thereafter.”
City have extra income to look forward to this season from new commercial contracts, a further boost of about £25m from the new Premier League TV deals, as well as more cash from the Champions League having qualified for the knock-out stages for the first time.
The actual way in which Uefa’s financial fair play rules will be applied is something of a mystery, but City have probably taken the right steps to stay within them. The club considers that the main exemption that will help them stay within the rules is that for pre-2010 player contracts. This would include the likes of Carlos Tévez and Robinho and writing off their wages could amount to £80m.
Moreover, City have also spent substantially on youth development, infrastructure and community projects over the last two years which can also be deducted from any deficit. This is thought to total between £30m and £40m.