Manchester City make a profit

Manchester City have made a proft of £10.7m in their last financial year.   This is the first time they made a profit since Sheikh Mansour bin Zayed took over the club in 2008.  The profit was achieved despite fines of £16m for breaches of Uefa’s financial fair play rules.

Manchester City have made a proft of £10.7m in their last financial year.   This is the first time they made a profit since Sheikh Mansour bin Zayed took over the club in 2008.  The profit was achieved despite fines of £16m for breaches of Uefa’s financial fair play rules.

Revenues were up to £351.8m, but even more significant, wage costs were down.   Wages now account for 55 per cent of turnover, down from 59 per cent.   Not so long ago they were in excess of 100 per cent, a very unhealthy level.   In 2010-11, the wages to turnover ratio reached 113 per cent.

The total wage bill of £193.5m is behind that of Manchester United at £203m, but close to Chelsea at £192.7m with a 60 per cent ratio and Arsenal at £192.2m with a 56 per cent ratio.

Commercial revenue was up 4 per cent to £173m, and broadcast revenue up 2 per cent to £135.4m, despite matchday revenue decreasing by 9 per cent to £43.3m. The club said the latter loss was derived from the expansion of the Etihad Stadium, with the capacity temporarily reduced while the work was carried out.

It is evident that the club is well run, particularly when one considers investment in the stadium, women’s teams and the academy.   However, City chairman Khaldoon al-Mubarak has demanded that Manchester City’s performances on the pitch match their financial success.   ‘No team can expect to win every year, but competing to win in England’s domestic competition and improving our performance in the Champions League are entirely reasonable goals,’ he said.