By Andy Sambidge
Premier League football club, bankrolled by Sheikh Mansour, also reports record turnover during 2012-13 season
Abu Dhabi-owned Manchester City has halved its losses for the second consecutive season, according to its latest financial report.
The 2012-13 report reveals that the Premier League football club, bankrolled by Sheikh Mansour Bin Zayed Al Nahyan, a member of Abu Dhabi's ruling family, posted a net loss of £51.6m ($85.4m), down from £97.9m in the previous reporting period.
It also showed annual turnover at £271m, breaking the £250m threshold for the first time in the club’s history.
The club, which won its first Premier League title in 2012 and is currently top of the table, said it is also for the first time, operating with zero financial debt having paid off all remaining borrowings.
In the report, chairman Khaldoon Al Mubarak spoke of optimism and of a “renewed sense of confidence for the future”, noting that on and off field success had “generated significant commercial opportunities for the organisation and underpinned a strong momentum for the years ahead".
Ferran Soriano, chief executive, added that the football club was continuing to make "significant strides" in both loss reduction and increased turnover.
He said: "Growing revenues and controlled expenses are bringing the club to break even in the immediate future and profitability thereafter.”
The report added: "Commercial revenue growth has been fundamental to Manchester City’s drive for sustainable profitability... the club strengthened its commercial capabilities with the hiring of top level talent at all levels of the organisation.
"As demand for seats grows, and with the stadium close to capacity for the second consecutive season for all Premier League games, we are conducting a public consultation on the possible expansion of the Etihad Stadium to a capacity of around 54,000 with the potential to rise to 60,000 in the future," the report added.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.