Big money: Manchester City have posted a staggering
£194.5m financial loss
Manchester City have
announced a staggering £194.5m million loss - the biggest ever
registered in English football.
The jaw-dropping figures for
the most recent financial year illustrate just how much money they
have been prepared to spend in the quest to become to become the
world's top team.
The gigantic loss for 2010-11
raises fresh concerns over City's ability to meet UEFA's strict
rules on financial fair play, the new guidelines which apply to all
clubs competing in European competitions from the 2014-15
season.
UEFA will monitor clubs'
accounts in the three years leading up to that season - beginning
with the current financial year.
In the rules, clubs are
allowed to lose just £38.5m in total over the three years. It is
part of UEFA's plan to cut down on the huge transfer fees and wages
that are crippling clubs.
City are bankrolled by Arab
oil billionaire Sheikh Mansour and the figures eclipse the previous
biggest loss. That was £141m by Chelsea in 2005 - the second year
under Roman Abramovich.
City's huge deficit was mainly
down to the huge investment in world class players, including Edin
Dzeko for £27m, David Silva for £26m, Yaya Toure for £24m,
Aleksandar Kolarov for £19m, Mario Balotelli for £24m and James
Milner for £26m. In total, the purchases came to
£156.5m.
Since June last year, Mansour
has poured a further £291m into the club, on top of the £500m
already spend up to that period. Up to the current day, he has
smashed through the £1billion barrier.
City's chief operating officer
Graham Wallace said they will never have another year like it as
they attempt to follow UEFA's guidelines.
Spend, spend, spend: The club continue to be bankrolled
by wealthy Arab owners
He said: 'Our losses, which we
predicted as part of our accelerated investment strategy, will not
be repeated on this scale in the future.
'These financial results
represent the bottoming out of financial losses at Manchester City
before the club is able to move towards a more sustainable position
in all aspects of its operations in the years ahead.
'As we undertake the club's
commercial transformation, we are cognisant of the incoming Uefa
financial fair play regulations and consequently we continue to
maintain positive and ongoing dialogue with all appropriate
football authorities.'
City chairman, Khaldoon
al-Mubarak added: 'Now that we are witnessing progress, both on and
off the pitch, it is more important than ever to work towards
achieving our ambition to establish Manchester City as a more
successful, sustainable and internationally competitive football
club, which remains rooted in the heart of the community it
services.
'With our best ever result in
the Premier League, qualification for the UEFA Champions League,
and an historic FA Cup campaign that delivered the Club its first
piece of major silverware in 35 years, there is much to be proud
of.
All smiles? Manchester city owner Sheikh Mansour has
lavished almost £1bn on the club
'However, we should not
underestimate the club's other major achievements in terms of its
continued commercial performance, ground-breaking partnership
initiatives, expanding contribution to the community, and
independent recognition for the quality of our facilities and match
day offerings.
'From the perspective of the
board and executive leadership team, these broader achievements are
equally important signs of progress in the ongoing evolution of
Manchester City and are particularly encouraging when combined with
the club's historic performance on the pitch.
'It is important to recognise
that much of the work covered in this report occurred under the
stewardship of Garry Cook.
'I want to take this
opportunity to formally thank him for his contribution to the
extensive transformation of the organisation.
'Now that we are witnessing
progress, both on and off the pitch, it is more important than ever
to redouble our efforts towards achieving our ambition to establish
Manchester City as a more successful, sustainable and
internationally competitive football club that remains at the heart
of the community in which it is based.'
City's income rose 22.5 per
cent to £153m during 2010-11.
