City post massive losses

Big-spending City lose £92.6million

Last updated: 6th January 2010   Subscribe to RSS Feed

City post massive losses

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Premier League big-spenders Manchester City have reported a loss of £92.6million, one of the biggest in British football history.

City have posted their financial results up to the end of May 2009, which means last summer's significant financial outlay has not been included.

The figures show the huge amount invested by Sheikh Mansour since he bought the Eastlands outfit from Thaksin Shinawatra in September 2008.

The figures do include the previous year's business, when City smashed the British transfer record to bring Brazilian superstar Robinho to the club for £32.5million.

Another Brazilian, Jo, also arrived although he has since joined Everton on loan, while Shay Given and Craig Bellamy were among a clutch of top-name players who were brought in 12 months ago.

Not included in the accounts are the summer signings by former boss Mark Hughes, which included Carlos Tevez, Emmanuel Adebayor, Roque Santa Cruz, Kolo Toure and Joleon Lescott.

Since then, of course, Hughes has lost his job and been replaced by Roberto Mancini, who could invest further in January.

Changes

City's chief financial and administration officer Graham Wallace said: "The

financial results reflect a period of rapid change at the club, the result of long-term planning and investment by the board and our owners, to create a sustainable business in the future.

"We have always said that this transformation will take a number of years and these figures reflect that."

On a normal business level, there have been areas of growth.

Turnover increased by six per cent to £87million, attendances rose to 42,890 from an average of 42,081 in the previous season, with ticketing revenues ahead by £1.8million, mainly as a result of the extended UEFA Cup run.

Television revenues rose by 12 per cent to £48.3million, also as a result of Uefa Cup performance.

Ultimately though, the figures represent a massive change at the club.

While City's playing squad is the obvious example of money being poured in from Abu Dhabi, there have been other, less noticeable costs.

Foundation

Hughes' demands to substantially improve the Carrington training ground were met. There were additional infrastructure costs, website and technology applications and staffing levels also went up.

For Sheikh Mansour and chairman Khaldoon Al Mubarak, these were essential in the growth of what was a middle-ranking Premier League outfit to one, by their own admission, which is expected to secure a top four spot this season and win the title - for the first time since 1969 - next.

Just as Roman Abramovich has done at Chelsea, Sheikh Mansour has turned the £304.9million shareholder loans he made to City into equity.

He has also purchased further shares to a value of £89.6million in a what is termed as a "show of commitment" to City.

"The owners' decision to convert debt to equity is in line with their previously-stated financial strategy and is fantastic news for supporters of Manchester City, whose club is now on a secure financial foundation that gives a tremendous platform to build from in future years," added Wallace.