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Manchester City reveals record £194.9m loss

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    #1

    Manchester City reveals record £194.9m loss

    Manchester City has reported an annual loss of £194.9m for 2010-11, the biggest in English football history.

    But the operating loss does not include the club's huge sponsorship deal with Etihad Airlines, worth a reported £35m a year, or revenues from this season's Champions League campaign.

    Uefa's Financial Fair Play rules, which come into full effect in 2013-14, say clubs must break even over three years.

    However the latest figures fall outside the accounting window for that.

    The previous biggest Premier League loss was £141m reported by Chelsea in 2005 - when they went on to win the league.

    The scale of City's losses reflect the investments made by owner Sheikh Mansour of Abu Dhabi, who has spent more than £460m on players since taking over the club in 2008.

    Since then, City have been transformed into the current Premier League leaders.

    Brian Marwood, chief football operations officer at the club, told the BBC: "We know that we still have an awful lot of work to do but I think it's exactly where we said we would be in terms of the initial investment.

    "Over a period of time we are fully aware we have to be compliant and there's a lot of work going on to make sure that's achieved."

    He added that the club was working with Uefa all the time and was "comfortable" with the governing body's new rules.

    'No repeat'
    It is the second year in a row that City has made big losses. In 2009-10, it reported an operating loss of £126m.

    But chief operating officer Graham Wallace said the losses "will not be repeated on this scale in the future".

    Turnover hit £153.2m, up from £125.1m in 2009-10.

    This was driven by a 49% jump in commercial partnership revenue to £48.5m.

    Income from television rights rose by 27.4% to £68.8m, thanks largely to the club's third-place finish in the Premier League, winning the FA Cup and a run to the last 16 of the Europa League.

    Match day ticket sales were up 8.2% to £19.7m.

    But wage costs continue to exceed turnover, rising from £133m in 2009-10 to £174m in 2010-11.BBC
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    #2
    Must impact on the FIFA Fair Finance Rules this?

    Comment

      #3
      Originally posted by REDTILDEAD View Post
      Must impact on the FIFA Fair Finance Rules this?
      This loss relates to last season, IIRC the first assessment period only started this summer so these figures won't be a problem for them.
      The only gracious way to accept an insult is to ignore it; if you can't ignore it, top it; if you can't top it, laugh at it; if you can't laugh at it, it's probably deserved.

      Comment

        #4
        Originally posted by Exiled_red View Post
        This loss relates to last season, IIRC the first assessment period only started this summer so these figures won't be a problem for them.
        Crafty that.

        Comment

          #5
          We did the same - that's why we blew/invested (delete as appropriate) the Torres money straight away.
          Hello mert.

          Comment

            #6
            Listening to Guardian Football weekly this morning, and there was discussion about a clause in the FFP rules. It allows the clubs to make a loss, on the proviso that they are making reasonable efforts to reduce the yearly loss and increase revenue.

            So its basically a cop out clause.
            *Except Michael, who died.

            Comment

              #7
              It's the Man City Clause.
              Trey Nyoni: countdown to stardom- 2 years 1year 0.5 years

              Comment

                #8
                Originally posted by Alex View Post
                Listening to Guardian Football weekly this morning, and there was discussion about a clause in the FFP rules. It allows the clubs to make a loss, on the proviso that they are making reasonable efforts to reduce the yearly loss and increase revenue.

                So its basically a cop out clause.
                What!!!

                Well that's it then, City Chelsea and any club that's rolling in it can spend wtf they like, and if theres clauses like this..there's probably others too. City have spent so much money, that they can easily prove they are trying to spend less than they have, it's pathetic!...and yet they'll still be able to massively out spend anyone else.

                What a waste of time this whole thing is.
                Last edited by Vermilion; 25-11-11, 12:20 PM.

                Comment

                  #9
                  Presumably this only relates to wages etc?

                  For example Man City made £194m loss this year, probably largely made up of transfer fees. If this loss were the first year of the FFP rules and they had to show progress next year presumably they couldn't use this defence if they go out and blow a load of money on new players.

                  I would assume that this defence only really applies if a club has a wage bill which would see them exceed the allowed limits of the FFP rules, and the appropriate progress would be made by moving players (on high wages) on in an attempt to reduce the wage bill and comply with the rules.

                  Presumably saying 'we spent £150m last year and only £100m this year so have progressed' wouldn't wash.
                  The only gracious way to accept an insult is to ignore it; if you can't ignore it, top it; if you can't top it, laugh at it; if you can't laugh at it, it's probably deserved.

                  Comment

                    #10
                    How much would City stand to lose out on should they fail to progress from the group stage of the CL this year?

                    Obviously, they'll still qualify for the CL next year, but does this little setback have any impact on their situation, or is the amount of money they'll lose out on but a drop in the ocean compared to their current losses?

                    Comment

                      #11
                      I don't know the figures but it would depend on how far they progress, for example the difference between getting knocked out in the group stage and getting knocked out in the first knock out stage will probably be 'just' a few million quid. The difference between getting to the final and getting knocked out in the group stages will obviously be alot more significant.
                      The only gracious way to accept an insult is to ignore it; if you can't ignore it, top it; if you can't top it, laugh at it; if you can't laugh at it, it's probably deserved.

                      Comment

                        #12
                        How much do you make from winning the CL these days?
                        Was muß, das muß.

                        Comment

                          #13
                          From wikipedia

                          http://en.wikipedia.org/wiki/UEFA_Ch...ue#Prize_money

                          Prize money

                          As of 2010–11, UEFA awards €2.1 million to each team in the play-offs round. For reaching the group stage, UEFA awards €3.9 million, plus €550,000 per group match played. A win in the group is awarded €800,000 and a draw is worth €400,000. In addition, UEFA pays teams reaching the first knockout round €3 million, each quarter finalist €3.3 million, €4.2 million for each semi-finalist, €5.6 million for the runners-up and €9 million for the winners.[44]

                          A large part of the distributed revenue from the UEFA Champions League is linked to the "market pool", the distribution of which is determined by the value of the television market in each country. For the 2010-11 season, Manchester United, who lost the final, earned nearly €53.2 million in total, compared with the €51.0 million earned by Barcelona, who won the tournament.[45]
                          The only gracious way to accept an insult is to ignore it; if you can't ignore it, top it; if you can't top it, laugh at it; if you can't laugh at it, it's probably deserved.

                          Comment

                            #14
                            Manchester City are seeking to sell as many as 20 players in the next two transfer windows as they seek to dramatically reduce their wage bill to try and meet Uefa’s Financial Fair Play regulations.
                            http://www.telegraph.co.uk/sport/foo...gulations.html

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