Manchester City have lost £121m in one year, the second biggest loss in Premier League history. They spent more on wages than their entire income, £133m compared with £125m.
Manchester City have lost £121m in one year, the second biggest loss in Premier League history. They spent more on wages than their entire income, £133m compared with £125m.
They are following the Chelsea strategy of splashing out on players in the hope of success on the pitch. This in turn then creates more revenue from match receipts, television and commercial revenue, permitting a more sustainable strategy. Chelsea are, however, still running at a loss.
The strategy is start ing to pay off. Average attendances have risen by 6.1 per cent and season ticket numbers have been capped at 35,000, leading to the creation of a waiting list. Earnings are up 45 per cent from £87m to £125m.
However, City need to adjust their spending to ensure that they conform to Uefa’s new financial fair play rules which start to operate next year. The last thing club wants is to win a Champions League place and then be excluded.