By Andy Sambidge
New Premier League champions vow to break even soon after being hit by penalties for failing UEFA financial fair play rules
Abu Dhabi-owned Manchester City has been fined £49m ($82.4m), with £32m of it suspended, after failing UEFA financial fair play rules.
The club can also only name a 21-man Champions League squad next season and can only spend £49m on players this summer, as well as any transfer fees they receive while their wage bill for 2014-15 must stay the same as this season.
Manchester City issued a statement in response to the penalties saying that the club is on course to financially break even at the end of the current financial year (May 31).
It said the transfer cap will have "no material impact on the club’s planned transfer activity".
It added that the club expects to be operating without sanction or restriction at the start of the 2015-16 season.
It said: "From the outset, the club has engaged with UEFA in its introduction of the Financial Fair Play Regulations in good faith and without prejudice and in a transparent and collaborative manner. The club’s position is that it is beholden upon UEFA and the European football establishment to ensure the same.
"The club can confirm that it has been in discussions with UEFA over the last month - in relation to the application of Financial Fair Play regulations... The club believes it has complied with the FFP regulations on this and all other matters.
"In normal circumstances, the club would wish to pursue its case and present its position through every avenue of recourse. However, our decision to do so must be balanced against the practical realities for our fans, for our partners and in the interests of the commercial operations of the club."
The club said the "compromise agreement" with UEFA included the following:
* The club will lose €10m of its share of income from UEFA for competing in the Champions League completion in season 2013-14.
* The club will lose €10m of its share of income from UEFA for competing in the Champions League for season 2014-15
* Rather than having an accumulative allowance of €30m of losses over the next two reporting years (like all other clubs), Manchester City will have specific stipulated allowances for 2013-14 and 2014-15 of €20m and €10m respectively.
* The club's Champions League squad for the 2014-15 competition will be limited to 21 players.
* The club’s expenditure on new players for the upcoming summer transfer window, on top of income from players it might sell, will be limited to €60m.
* The wage bill of the whole club (playing and non-playing staff) for 2014-15 will need to remain at the same level as that of 2013-14 season but additional bonuses for performances can be paid outside this number.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.