City post first profit since billion-pound Sheikh-up
MANCHESTER City FC has reported a profit of £10.7m – it’s first suplus since its transformational acquisition in 2008 by Sheikh Mansour, a member of Abu Dhabi’s royal family.
Since the takeover, the club has won the Premier League twice, the FA Cup, and League Cup. The stadium has been expanded, a world class £200m training and youth development facility on a brownfield site in East Manchester opened last year, while a host of top players have been signed for hundreds of millions of pounds.
Globally, the overall owner Abu Dhabi United Group Investment and Development has created the City Football Group, which has added clubs in New York, Japan and Australia to the Manchester lynchpin.
The figures for the year to the end of May showed continued progress with revenues rising to a record £351.8m, representing a seventh successive year of growth.
Commercial revenues rose 4% to £173m as a number of new deals were agreed, including a partnership with car gain Nissan. Broadcast revenue rose 2% to £135.4m.
After a disappointing showing in both domestic cup competitions and the impact of building work to expand the south stand, matchday revenue fell 9% to £43.3m.
The accounts show that despite an increase in staff numbers (including football staff) from 314 to 320, payroll costs fell from £205m to £193.8m. The club said its wage to turnover ratio now stands at 55%.
The figures do not include this summer’s transfers, which saw two transfers of around £50m each, with England winger Raheem Sterling and Belgian star Kevin de Bruyne joining the club, which currently tops the Premier League table.
Chairman Khaldoon Al Mubarak said: “Our transition to profitability has been a long-planned milestone – one targeted and worked diligently towards since His Highness Sheikh Mansour’s acquisition of the club in 2008. As a result, to put things in their simplest terms, we are now a profitable business with no debt 
and no outstanding restrictions.”
Chief executive Ferrran Soriano said the profit was an “historical step” for the club.
He added: “The financial model and the strategic investment is proven to work. Manchester City is now a profitable, self-sustainable club competing at the highest level in world football.”
The former FC Barcelona chief added: “Manchester City is now a club focused squarely on the delivery of a range of exciting initiatives that have been taking place across the organisation under the guidance of the owner, chairman and board. The recent developments are indicative of the progress we have made but, more importantly, of the potential that exists for Manchester City to reach even greater heights in the future.”
In his financial report, non-executive director John McBeath says: “Importantly, Manchester City’s financial position remains strong. The Club has net assets valued at more than £676m and continues to operate with zero financial debt.”
