Manchester City hit by losses of over $190 million
October 1, 2010
English Premier League side Manchester City has announced losses of £121 million (US$191 million) for the 12 months leading up to 31 May this year.
The record losses rose by a third compared to the £92.5 million (US$146.3 million) of the previous year.
The club’s wage costs of £133.3 million (US$210.9 million) exceed its turnover of £125 million (US$197.8 million), which would be unsustainable for most other businesses.
However, City are owned by billionaire Sheikh Mansour of Abu Dhabi, who has invested more than £300 million (US$474.9 million) in players since he took control of the club in 2008.
Sheikh Mansour posted a letter on the club’s official website which read: “Two years ago I was fortunate enough to become part of the Manchester City story and I remain grateful for the warmth of the welcome that you have given me.
“The ownership of a club like Manchester City, with such a rich heritage and diverse community of stakeholders, carries a unique set of obligations to the fans, staff and broader Manchester community.
“This is something I do not take lightly. Therefore the challenge I set my board and executive leadership team is to develop City so that it is one of the most successful clubs both on and off the pitch, but to do so without losing any of the characteristics that make it so special.”
The highest financial loss in the history of the Premier League was Chelsea’s in the 2004/05 season when the club posted losses of £141 million (US$223.2 million) after its first full season under the ownership of Russian billionaire Roman Abramovich.