Premier League leaders Manchester City on Friday announced annual losses of £194.9million, the highest ever recorded in English football. Whilst accepting the vast scale of the losses, City officials were adamant it marked a low point in their financial graph and from this point forward, they would be embarking on a significant upward trend.
"Our losses, which we predicted as part of our accelerated investment strategy, will not be repeated on this scale in the future," said chief operating officer Graham Wallace. Thankfully for City, the figures will not be taken into account used as part of UEFA's Financial Fair Play regulations as they fall outside the accounting window. Indeed, as "additional exceptional charges" of £34.4million have been added to a net loss of £160.5million for the 2010-11 financial year, it could be argued the club have been quite astute in their planning.
It is also easy to see why the club are so strong in defending their present position as the mammoth sponsorship deal with Etihad Airlines, said to be worth £35million-a-year over the next decade, plus the riches on offer in this season's Champions League, will have begun to impact on City's accounts in 12 months' time.
The Blues are also pointing out that commercial revenue has risen 49.7 percent to £48.5million and TV rights, thanks to the club's third place Premier League finish, winning the FA Cup to end a 35-year trophy drought and a run to the last 16 of the Europa League, have increased 27.4 percent to £68.8million. Overall turnover was £153.2million, breaking through the £150million barrier for the first time.
"The result is consistent with the guidance provided in the first MCFC annual report that losses would peak in the 2010-11 financial year, as a result of the accelerated investment programme that the club undertook between 2008 and 2011," said the club in a statement to accompany the results.