Manchester City launch London commercial office
MANCHESTER City Football Club is opening a commercial office in London as it targets becoming one of the top five clubs by revenue in Europe.
The club – which has climbed up the money league tables in the last three years as revenues have soared from £90m to £153m, is determined to become a more sustainable business after huge investment since the Abu Dhabi takeover in 2008.
Last November Manchester City declared a record loss of nearly £195m, and is targeting turnover growth from its commercial partners and ever-increasing international fan-base as crucial to this.
The club has had premises on Old Park Lane in London’s West End for several years, but is only now staffing it up full time as it seeks to woo international corporate clients as commercial partners.
The London operation will be on a “small scale” and was described as a “logical step” by the club. Title rivals Manchester United also has a London base which has become the focus for its successful commercial growth as partners such as DHL have been secured.
Senior officials from City revealed the club’s aspirations at am ‘Inside City’ briefing last Friday at the Etihad Stadium, where more than 100 business people were given a report on the club’s commercial, community and football progress in the last year.
City’s financial figures for 2011-12 will be boosted by at least £55m as a result of playing in the UEFA Champions League for the first time, which is worth around £20m with the balance coming from the first tranche of the 10-year sponsorship deal with Middle East airline Etihad.
Officials said the club was now at 11th in the league table of soccer clubs when ranked by revenues and will seek to reach the top five in the coming years by developing innovative partnerships with new corporates in a similar fashion to its deals with video games giant EA Sports and Etihad.
Meanwhile club sources say the search for a new chief executive is nearing completion, with an announcement due soon.
The club has not rushed to replace former Nike executive Garry Cook who was forced to resign last autumn amid controversy after an email row with a player’s mother.
