City post English record £195m losses
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Good luck with Financial Fair Play! City post English record £195m losses
Big money: Manchester City have posted a staggering £194.5m financial loss
Manchester City have announced a staggering £194.5m million loss - the biggest ever registered in English football.
The jaw-dropping figures for the most recent financial year illustrate just how much money they have been prepared to spend in the quest to become to become the world's top team.
The gigantic loss for 2010-11 raises fresh concerns over City's ability to meet UEFA's strict rules on financial fair play, the new guidelines which apply to all clubs competing in European competitions from the 2014-15 season.
UEFA will monitor clubs' accounts in the three years leading up to that season - beginning with the current financial year.
In the rules, clubs are allowed to lose just £38.5m in total over the three years. It is part of UEFA's plan to cut down on the huge transfer fees and wages that are crippling clubs.
City are bankrolled by Arab oil billionaire Sheikh Mansour and the figures eclipse the previous biggest loss. That was £141m by Chelsea in 2005 - the second year under Roman Abramovich.
City's huge deficit was mainly down to the huge investment in world class players, including Edin Dzeko for £27m, David Silva for £26m, Yaya Toure for £24m, Aleksandar Kolarov for £19m, Mario Balotelli for £24m and James Milner for £26m. In total, the purchases came to £156.5m.
Since June last year, Mansour has poured a further £291m into the club, on top of the £500m already spend up to that period. Up to the current day, he has smashed through the £1billion barrier.
City's chief operating officer Graham Wallace said they will never have another year like it as they attempt to follow UEFA's guidelines.
Spend, spend, spend: The club continue to be bankrolled by wealthy Arab owners
He said: 'Our losses, which we predicted as part of our accelerated investment strategy, will not be repeated on this scale in the future.
'These financial results represent the bottoming out of financial losses at Manchester City before the club is able to move towards a more sustainable position in all aspects of its operations in the years ahead.
'As we undertake the club's commercial transformation, we are cognisant of the incoming Uefa financial fair play regulations and consequently we continue to maintain positive and ongoing dialogue with all appropriate football authorities.'
City chairman, Khaldoon al-Mubarak added: 'Now that we are witnessing progress, both on and off the pitch, it is more important than ever to work towards achieving our ambition to establish Manchester City as a more successful, sustainable and internationally competitive football club, which remains rooted in the heart of the community it services.
'With our best ever result in the Premier League, qualification for the UEFA Champions League, and an historic FA Cup campaign that delivered the Club its first piece of major silverware in 35 years, there is much to be proud of.
All smiles? Manchester city owner Sheikh Mansour has lavished almost £1bn on the club
'However, we should not underestimate the club's other major achievements in terms of its continued commercial performance, ground-breaking partnership initiatives, expanding contribution to the community, and independent recognition for the quality of our facilities and match day offerings.
'From the perspective of the board and executive leadership team, these broader achievements are equally important signs of progress in the ongoing evolution of Manchester City and are particularly encouraging when combined with the club's historic performance on the pitch.
'It is important to recognise that much of the work covered in this report occurred under the stewardship of Garry Cook.
'I want to take this opportunity to formally thank him for his contribution to the extensive transformation of the organisation.
'Now that we are witnessing progress, both on and off the pitch, it is more important than ever to redouble our efforts towards achieving our ambition to establish Manchester City as a more successful, sustainable and internationally competitive football club that remains at the heart of the community in which it is based.'
City's income rose 22.5 per cent to £153m during 2010-11.
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More losses if Tevez sues and wins?
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why restrict?
let the rich throw their money.
it will trickle down and help the common men.
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When the loss runs into the billions after a few years, the rich owners might just get bored and sell off the club.
Then the collapse of the club begins.
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The arabs can afford it. they have 15b, so 1b losses, they still have 14b in their bank account
they like to play FM in real life, so let them.
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Originally posted by charlize:
When the loss runs into the billions after a few years, the rich owners might just get bored and sell off the club.
Then the collapse of the club begins.
well.. chelsea is still there.. or Roman..
I think they are happy to own these clubs as they don't cost too much to bleed, and provided a weekend entertainment.
at least, these are sugar daddys.. unlike the one in other manchester who is bleeding them dry.
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Originally posted by Rooney_07:
The arabs can afford it. they have 15b, so 1b losses, they still have 14b in their bank account
they like to play FM in real life, so let them.
You will be surprised.
One day they will look at the books and realise they just lost 1 billion dollars and they will pull out everything just like that.
City goes into administration and that's it.