Surge in turnover sees Man City halve losses to £97.5m
RECORD turnover of £231.1m – up more than 50% thanks to new commercial deals – helped Manchester City FC halve its annual losses for the year to the end of May.
The club, owned by Abu Dhabi-based billionaire Sheikh Mansour bin Zayed, and which won the league for the first time in 44 years in May, cut losses from £197.5m to £97.9m.
The accounts reveal that during the year £169m in new equity was injected into the club coffers by Sheikh Mansour, Manchester City is largely debt free.
Commercial revenues saw the biggest growth, the club said, with growth of 87% to £121.7m, reflecting the greater attractiveness of the City brand to major corporates.
The growth also reflects the first year of a new partnership with Middle East airline Etihad, which saw it take overt the naming rights of the ground and the ambitious new £200m football academy development in East Manchester.
TV rights income increased by 28% from £68.8m to £88.2m, driven by winning the FA Barclays Premier League and playing in the UEFA Champions League for the first time.
There was a 13% rise in hospitality, catering, conference and events revenue, from £10.4m to £11.7m. Ticketing revenues increased by 11% from £19.7m to £21.9m, driven primarily by record average attendance in the Barclays Premier League and also the UEFA Champions League.
Reflecting continuing player recruitment including Sergio Aguero and Samir Nasri, the club’s wage bill rose from £151.6m to £178.1m.
The accounts also reveal that former chief executive Garry Cook received compensation for loss of office of around £500,000 after his resignation last autumn in controversial circumstances. He has since been replaced by former Barcelona FC executive Ferran Soriano.
Chairman Khaldoon al-Mubarak said he was pleased with progress: “The hard work of everyone involved at Manchester City over the last four years has begun to create an obvious momentum.
“However, 2011-12 will always be remembered as a particularly significant year in the history of the club, a season when Manchester City demonstrated an ability to win in even the most challenging of circumstances.
Referring to the football academy scheme – which promises significant benefits for the local communitiy – Mr al-Mubarak said: “The CFA (City Football Academy) will strengthen the club’s youth development and training capabilities, enable more players to move through the Academy and into the first team in the future, while bringing all of the club’s operations together on a single site within the Etihad Campus.”
