By Andy Sambidge
Premier League champions says losses narrow to $157.9m during the 2011-12 season
Abu Dhabi-owned Manchester City has announced that the club more than halved its losses, reporting a net loss of £97.9m ($157.9m) in 2011-12, down from £197.5m in the previous season.
The reigning Premier League champions, bankrolled by Sheikh Mansour Bin Zayed Al Nahyan, a member of Abu Dhabi's ruling family, also reported that annual turnover broke the £200m threshold for the first time in the club’s history - achieving annual revenues of £231.1m in 2011-12.
The figures were part of the club's annual report which highlighted "the tangible and positive impact of four years of strategic investment in all operations" since the acquisition of the club by Sheikh Mansour in September 2008.
In the report, chairman Khaldoon Al Mubarak called the City Football Academy project "the most significant current initiative to secure the long-term sustainability of the club’s football operations".
He said the capital base of the club has also been strengthened through the issuing of £169m in new equity during the year, avoiding debt based funding and continuing to ensure Manchester City is "virtually debt free".
Recently appointed CEO Ferran Soriano added: “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 that alongside significant investment in the playing squad, the club would "continue to focus on revenue growth".
The report said the latest figures "position the club well" for compliance with UEFA’s Financial Fair Play regulations which come into effect in season 2013-14.
Sheikh Mansour bought the Manchester club in 2008 and has invested nearly $1bn to help lead it to recent glories of the FA Cup and the Premier League title.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.
Nice cheerleading there, but City could still face sanctions because the loss is more than the â‚¬45m allowed under the rules. But since footie is such a corrupt sport these days, no doubt someone will ignore the rules. Ego costs money.