Manchester City makes £126m net loss but expects to bounce back to profit

Manchester City FC has posted a £126m net loss for the 2019-20 season, compared with a £10.1m profit the previous year, as a result of the extraordinary impact of the coronavirus.

Revenues fell by 11% to £478.4m from £535.2m due to revenue delays relating to just under a quarter of Premier League matches and the latter stages of the Champions League and FA Cup.

Also, the club pointed out that significant revenues from player sales, such as Leroy Sane to Bayern Munich, were delayed by the pandemic and do not appear in the 2019-20 accounts.

Ticket and all stadium related sales ceased, season cards were refunded, and broadcasting revenues were reduced following rebates given by the Premier League to broadcasters. At the same time the club continued to meet its full financial commitments, in addition to providing support to staff and the local community in a season that was paused between March and June, and then completed in the 2020-21 financial year, as a result of the global pandemic.

However, the club said it expects to immediately return to profitability in 2020-21, as a result of a less COVID-impacted season and deferred 2019-20 revenues.

The likely normalised losses for each of the 2019-20 and 2020-21 seasons will, therefore, be less than £60m per year.

Chairman Khaldoon Al Mubarak said “[We have] a business that is fundamentally strong, with committed shareholders and with significant assets, built carefully over a decade and upon more than a century of history.”

He added: “Our long-term approach has meant that we are now not wholly dependent on income streams that have been most vulnerable to the ongoing impact of COVID-19.”

Chief executive Ferran Soriano said: “Clearly, the 2019-20 accounts in isolation are not the best representation of the reality of the season with delayed player trading and numerous games being played after 30th June 2020, the revenues from which will be accounted in the 2020-21 period.

“A better financial picture of the COVID years will be provided at the end of the 2020-21 season, when the two seasons are combined and normalised.”