Man City slash losses as revenues soar
MANCHESTER City FC slashed its annual operating losses from £104.1m to £50.6m on the back of record turnover of £271m, it has announced.
Despite growth in wages and salaries from £201.7m to £233.1m in the year to May 31 last year, the club, bankrolled by Abu Dhabi-based Sheikh Mansour, said it was nearing breakeven.
Chief executive Ferran Soriano said: “Growing revenues and controlled expenses are bringing the club to breakeven in the immediate future and profitability thereafter.”
Mr Soriano said before transfer expenditure the club had reported an operating profit of £30.2m, compared with a £21.1m loss in 2012.
Matchday revenue increased by 12% from £35.5m to £39.6m. Broadcasting revenue increased slightly from £88.1m to £88.4m,as a result of a second place finish in the Premier League and participation in the UEFA Champions League.
The biggest growth was seen in other commercial revenue – up 33% from £107.5m to £1430m, driven by an increase in the number and value of
sponsorship contracts, including Etihad, EA Sports, watch brand Richard Mille.
Mr Soriano, an experienced football industry executive having worked previously at Barcelona, said a further £189.8m of new equity had been injected into the club during the year.
“After paying off its remaining external borrowings, the club is now operating with zero financial debt. The absence of financial debt at Manchester City provides the club with a strong and stable foundation for its future growth and operations,” he added.
