Manchester City's record-breaking
transfer-market splurge is effectively being written off as a gift
by the club's Abu Dhabi owners. The sheikhs have spent more than
£500m in aggregate wages and transfer fees on players such as
Carlos Tevez, Robinho and Emmanuel Adebayor. But unlike for owners
such as Chelsea's Roman Abramovich, the expenditure will
not find its way on to the balance sheet.
Despite his immense wealth Abramovich quantified much of his
acquisitions through directors' or "soft" loans, amounting to more
than £700m before he converted a slug of it down to equity. That
left Chelsea just under £340m in debt to its owner at the last
reckoning, with critics saying it would become insolvent if
Abramovich's backing were to be abruptly withdrawn.
Although Eastlands sources say the Islamic aversion to imposing
debt was not a consideration, City's owners are alive to the
widespread debate last yearover the levels of debt in the Premier League.
They feel the current spending is necessary to break in to the
Champions League, when the club will be self-sustaining. But
although that will reassure City fans, the news will only increase
their rivals' sense that Abu Dhabi is "financial doping" its
club.
