City report record losses of £195m
MANCHESTER CITY yesterday announced an annual loss of £194.9m -- the biggest ever recorded in English football.
The figure, for the 2010-11 season, included a wage bill of £174m, which was higher than the total turnover of £153m.
The record loss is further evidence of how far the City owner Sheikh Mansour is willing to go to fund their rise to the top.
The figure of £194.9m comprises a net operating loss of £160.5m plus another £34.4m in written-off player contracts. It dwarfs the previous record loss of £140m, sustained by Chelsea in 2004-05.
Beyond the operating loss itself, Sheikh Mansour has invested a further £290.9m in the club in new equity.
City will need to bring down their losses to accord with UEFA's financial fair play rules, which allow for a £38.5m loss over three financial years from this season to 2014-15.
City's chief operating officer, Graham Wallace, insisted that they would do that.
"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," he insisted.
The figures cover a period in which City paid out heavily on new players, spending a total of £156.5m on transfer fees. Among the players signed were Edin Dzeko, Yaya Toure, David Silva and Mario Balotelli, all of whom cost more than £20m each.
Such an expensive playing staff naturally means a high wage bill and City's is now the Premier League's highest.
The total, £174m increased from £133m the previous season -- it was £82m in 2008-09, the first season of Abu Dhabi ownership. It has now overtaken Chelsea's £172m payroll.
Although City's spending on wages is now higher than their turnover, they are taking in more money than ever before: £153.2m last year, up by 22.5pc. This is been helped by a remarkable 49.7pc increase in commercial revenue, up to £48.5m.
They continued to spend on players yesterday, though, as it was announced that Adam Johnson has signed a new deal keeping him at City until 2016, while utility man Pablo Zabaleta has signed an extension until 2015.
Meanwhile, manager Roberto Mancini yesterday repeated his belief that Carlos Tevez has played his last game for the club.
Tevez is still AWOL in Argentina and has made no contact with the club since flying ther last week. The 27-year-old is making use of his free time by trying to improve his golf game. (© Independent News Service)
Manchester City v Newcastle
Live, Setanta Sports, 3.0