Skip to main content

Manchester City halves its world-record financial loss

updated 4:08 PM EST, Fri December 14, 2012
STORY HIGHLIGHTS
  • English champion Manchester City posts loss of $158 million for 2011-12 season
  • Its revenues rose to a record $374 million after winning title and playing in Champions League
  • Owner Sheikh Mansour bin Zayed injected $273 million to keep the club debt free
  • City paid more than $325 million in player wages -- the first English club to reach that level

(CNN) -- Big-spending English club Manchester City moved a step closer to meeting European football's financial fairplay requirements on Friday despite posting a loss of almost $160 million for last season.

City's deficit of £97.9 million ($158 million) for 2011-12's Premier League-winning campaign was just under half that of the £197.5 million ($318 million) for the previous period -- which was the biggest loss in soccer history.

The latest figure represents the fourth highest deficit in the English game -- three of which belong to City since the arrival of its Abu Dhabi owners in 2008.

It can be contrasted with the $37 million net profit made by rival Manchester United in 2011-12.

Manchester United is the most valuable brand in football according to a report by independent consultancy Brand Finance. The global appeal and on-field success of the 19-time English champions has helped establish a brand worth an estimated $853 million. Manchester United is the most valuable brand in football according to a report by independent consultancy Brand Finance. The global appeal and on-field success of the 19-time English champions has helped establish a brand worth an estimated $853 million.
Manchester's money machine
HIDE CAPTION
<<
<
1
2
3
4
5
6
>
>>
Brand power: Football\'s most valuable clubs Brand power: Football's most valuable clubs
France Football magazine has released a list of the highest-earning players in world soccer. Three-time World Player of the Year Lionel Messi of Barcelona tops the list, earning $52 million in wages and sponsorship deals. France Football magazine has released a list of the highest-earning players in world soccer. Three-time World Player of the Year Lionel Messi of Barcelona tops the list, earning $52 million in wages and sponsorship deals.
Lionel Messi $52M
HIDE CAPTION
<<
<
1
2
3
4
5
6
7
8
9
10
>
>>
World\'s richest footballers World's richest footballers
Barcelona's players are the best paid in the world according to a new report. The team kept its No. 1 place on the earnings table with each player taking home an average annual salary of $8.6 million (£5.2 million). That's a whopping $166,934 (£101,160) per week and a 10% rise on last year. Barcelona's players are the best paid in the world according to a new report. The team kept its No. 1 place on the earnings table with each player taking home an average annual salary of $8.6 million (£5.2 million). That's a whopping $166,934 (£101,160) per week and a 10% rise on last year.
1. Barcelona FC $8.6 million average
HIDE CAPTION
<<
<
1
2
3
4
5
6
7
8
9
10
>
>>
The world\'s 10 best-paid sports teams The world's 10 best-paid sports teams

United posted a reduced revenue of £320 million ($517 million) for that period, while City closed the gap with a club-record turnover of £231.1 million ($374 million). Both are substantially behind leading Spanish clubs Real Madrid and Barcelona.

Chelsea boosted by first profit in Abramovich era

It was the first time that City had breached the £200 million ($323 million) mark, and reflects the club's attempts to become more self-sufficient and avoid possible punishment from UEFA for failing to meet FFP targets.

However, owner Sheikh Mansour bin Zayed still injected £169 million ($273 million) in order to keep the club debt free.

"It is important to recognise the personal and ongoing influence of Sheikh Mansour bin Zayed on the rapid transformation that is taking place," said chairman Khaldoon al-Mubarak.

"The hard work of everyone involved at Manchester City over the last four years has begun to create an obvious momentum."

Last season City won the English title for the first time since 1969, and made a debut appearance in the UEFA Champions League.

Manchester United seeks to cash in as sponsor DHL is sent packing

The club's revenue would have been higher if not for a group-stage exit from Europe's top club competition -- which has been repeated already this season -- but new chief executive Ferran Soriano was satisfied with the results.

He joined City in September, having previously helped transform the financial fortunes of Barcelona between 2003-08.

Manchester City was the highest spender when it came to agents' fees, paying out close to $17million. Manager Roberto Mancini was busy in the transfer market, bringing in the likes of Javi Garcia from Benfica.
Manchester City was the highest spender when it came to agents' fees, paying out close to $17million. Manager Roberto Mancini was busy in the transfer market, bringing in the likes of Javi Garcia from Benfica.
Manchester City - $17m
HIDE CAPTION
<<
<
1
2
3
4
5
6
7
8
>
>>
EPL agents earn millions EPL agents earn millions
This image of a bloodied and defiant Rio Ferdinand has been at the forefront of a perceived return of hooliganism in English football, following crowd trouble at the Manchester derby. This image of a bloodied and defiant Rio Ferdinand has been at the forefront of a perceived return of hooliganism in English football, following crowd trouble at the Manchester derby.
Return of the English hooligan?
HIDE CAPTION
<<
<
1
2
3
4
5
6
7
>
>>
A new \'dark age\' for English football? A new 'dark age' for English football?
Carlos Tevez was forced to apologize after holding up a banner saying "R.I.P. Fergie" during Manchester City's victory parade -- a reference to United manager Alex Ferguson. Carlos Tevez was forced to apologize after holding up a banner saying "R.I.P. Fergie" during Manchester City's victory parade -- a reference to United manager Alex Ferguson.
Tevez in trouble
HIDE CAPTION
<<
<
1
2
3
4
5
>
>>
Blue half of Manchester hail City\'s EPL title triumph Blue half of Manchester hail City's EPL title triumph

"What I have found is a club on the verge of a historic transformation, reinforced by a genuine commitment to doing things well. It is a club with a rich history and the potential for an even brighter future," he said.

With the FFP rules coming into play from next season, City officials are under pressure to conform -- or face the possible expulsion from European competition and a withholding of prize money.

A 10-year stadium rights deal with Etihad Airlines -- owned by Abu Dhabi's royal family -- which also includes the club's under-construction campus has considerably boosted City's balance sheet.

It is building an academy to try to avoid paying over the odds for star players in the future -- the £201.8 million ($326 million) wage bill for 2011-12 made City the first English club to break £200 million in salaries, according to the Sporting Intelligence website. That equates to more than $890,000 a day.

"The City Football Academy will strengthen the club's youth development and training capabilities, enable more players to move through the Academy and Elite Development Squads into the first team in the future, while bringing all of the club's operations together on a single site within the Etihad Campus," Khaldoon said.

"The responsibility lies with all of us to continue the hard work that will ensure that this is only the beginning of a long and successful era for Manchester City."

ADVERTISEMENT
Part of complete coverage on
updated 7:51 AM EDT, Fri August 15, 2014
Last season Jose Mourinho wrote off the title of hopes of his "little horse" -- but now he has a squad primed to dethrone Manchester City.
updated 2:58 PM EDT, Thu August 14, 2014
Luis Suarez will have to wait until late October to make his competitive Barcelona debut his ban for biting an opponent was partially upheld.
updated 12:49 PM EDT, Thu August 14, 2014
Can Louis van Gaal cut it at Manchester United? Will Bayern conquer all in Germany? Is this PSG's year to win the Champions League?
updated 6:12 AM EDT, Thu August 7, 2014
It's been a difficult year for Barcelona on and off the pitch, and the signing of Luis Suarez has only increased the prospect of more controversy.
updated 10:35 AM EDT, Mon August 11, 2014
Germany striker Miroslav Klose, who scored a total of 16 goals at four World Cup finals, has announced his retirement from international football.
updated 7:45 AM EDT, Thu July 31, 2014
Cultural y Deportivo Leonesa line up in their tuxedo kit.
When celebrating an important anniversary, it's always good to look your best. At least that's theory for a Spanish football team's preseason tuxedo kit.
updated 7:03 AM EDT, Wed July 30, 2014
While many top European clubs are targeting the U.S. market, French football is setting its sights on expanding into Asia -- with China playing a key role.
updated 8:29 AM EDT, Sun July 27, 2014
Major League Soccer has snared another big name from England with former Chelsea star Frank Lampard committing his future to New York City FC.
updated 12:56 PM EDT, Wed July 23, 2014
Europe's top clubs have booked a summer holiday to the U.S. -- but this is business not pleasure as they look to cash in on the World Cup afterglow.
updated 2:28 PM EDT, Tue July 22, 2014
Brazil's new coach Dunga won the World Cup as a player in 1994.
Former World Cup-winning captain Dunga is appointed coach of Brazil's national team for the second time, charged with restoring national pride.
updated 10:20 AM EDT, Tue July 22, 2014
Colombia's World Cup star James Rodriguez continues Real Madrid's long tradition of signing "Galacticos."
updated 6:07 AM EDT, Mon July 21, 2014
Germany's World Cup-winning captain Philipp Lahm has decided to go out at the top by announcing his retirement from international football.
ADVERTISEMENT