Premier League leaders Manchester City have announced record losses of £194.9million for the 2010-11 financial year.
Premier League leaders do not expect a repeat of figures
Premier League leaders Manchester City have announced record losses of £194.9million for the 2010-11 financial year.
The huge sum, which is the highest-ever recorded in English football, demonstrates the level of the investment made by owner Sheikh Mansour.
Fortunately for the club, UEFA's new Financial Fair Play regulations fall outside the accounting window, meaning the losses will not count towards their participation in European competition.
City say the losses were predicted and that the record figure is not something that will be repeated in future.
Predicted
"Our losses, which we predicted as part of our accelerated investment strategy, will not be repeated on this scale in the future," chief operating officer Graham Wallace told the club's
official website.
"Consistent with the club's transformation strategy, and the stated ambition of commercial sustainability, 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."
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 relatively astute in their planning.
Sponsorship
Additionally the club's 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 UEFA 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 per cent 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 per cent to £68.8million.
Overall turnover was £153.2million, breaking through the £150million barrier for the first time.
Chairman Khaldoon Al Mubarak insists making the club sustainable and successful remains everyone's goal at the club, stating: "Now that we are witnessing progress, both on and off the pitch, it is more important than ever to redouble our efforts and 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 serves."
