Man City announce record £195m losses
Published 14:18 18/11/11 By David McDonnell
Manchester City have posted record losses of £194.9million - but insist they will comply with UEFA's new financial fair play rules.
City's remarkable deficit shows just how much money mega-rich owner Sheikh Mansour has thrown at the club to turn it into the biggest in the world.
The figure eclipses the previous biggest loss of £141m, made by Chelsea in 2005 in their second year under billionaire Russian owner Roman Abramovich.
The bulk of the loss came from buying players, with £156.5m spent on Edin Dzeko, David Silva, Yaya Touré, Aleksandar Kolarov, Mario Balotelli, James Milner and Jerome Boateng.
City also spent a staggering £174m on player wages, £21m higher than the club's entire turnover for the last financial year.
But with City set to earn around £40m a year over the next decade from their stadium sponsorship deal with Etihad and with Champions League revenue of £40m-£70m a season, they are confident they can offset their huge losses.
UEFA will assess clubs' finances from 2012, with the fair play rules aimed at addressing the exorbitant transfer fees and wages paid by the likes of City which are unsustainable long-term.
Under the new rules, clubs are allowed to lose just £38.5m in total over the three years, but City are adamant they have the projected revenue streams to ensure they fall in line with UEFA.
City's chief operating officer Graham Wallace 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 said: "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."
Despite the headline losses figure, City's income rose 22.5 per cent to £153m during 2010-11, the first time their overall turnover has broken through the £150m barrier.
City's commercial revenue rose 49.7 per cent to £48.5million while TV rights, thanks to a third-place Premier League finish, winning the FA Cup and a run to the last 16 of the Europa League, increased by 27.4 per cent to £68.8million.
UEFA declined to comment on City's financial position but president Michel Platini re-iterated the organisation's commitment to financial fair play and ensuring all clubs comply with it.
"Financial fair play is a top priority for UEFA in order to achieve more transparency and guarantee equality in our competitions," said Platini.
"I am confident the introduction of financial fair play will help preserve the stability and health of European club football in the medium to long-term."
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