Manchester City Sets New Annual Loss Record

Manchester City has announced annual losses of £195m for the 2010-11 financial year, capsule a new record for English football clubs.

The club has spent heavily on player wages and transfer fees since Sheikh Mansour took over in 2008 and sought to establish the club as serious challenger for domestic and European trophies.

There will be no UEFA Financial Fair Play rule implications as the figures are not within  the accounting window.

Officials at the club do not expect such dramatic losses in future. Graham Wallace, dosage ed City’s Chief Operating Officer said:

“Our losses, which we predicted as part of our accelerated investment strategy, will not be repeated on this scale in the future.”

There is positive financial news for the club. Overall turnover during the same period was £153.2m, and the accounts showed City’s commercial revenue has reached £48.5m, an increase of 49.7 percent. The sponsorship deal with Etihad Airlines is reported to be worth £35m per year for the next ten years.

TV rights have increased 27.4 percent to £68.8m following the 2010-11 season, which was one of the most successful in the club’s recent history. TV revenue is likely to increase further still this season as the club competes in the Champions League for the first time.