Premier League leader Manchester City has announced annual losses of 194.9 million pounds ($A309 million), the highest ever recorded in English football.
Whilst accepting the vast scale of the losses, City officials were adamant it marked a low point in their financial graph and from this point forward they would be embarking on a significant upward trend.
"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 said.
Thankfully for City, the figures will not be taken into account as part of UEFA's Financial Fair Play regulations as they fall outside the accounting window.
Indeed, as "additional exceptional charges" of 34.4 million pounds have been added to a net loss of 160.5 million pounds for the 2010-11 financial year, it could be argued the club has been quite astute in its planning.
It is also easy to see why the club is so strong in defending its present position.
The mammoth sponsorship deal with Etihad Airlines, said to be worth 35 million pounds a year over the next decade, plus the riches on offer in this season's 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 48.5 million pounds.
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 68.8 million.
Overall turnover was 153.2 million, breaking through the 150 million barrier for the first time.
AFP
Tags: english-premier, soccer, sport, england, united-kingdom First posted November 19, 2011 09:51:31
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