Man City Reports £92.6m Loss

Premier League football club Manchester City has reported an annual loss of £92.6m for the 2008/09 financial year.

The loss reflects the amount of money the club has spent on bringing in top-class players, such as the £32.5m signing of Brazilian international Robinho.

‘The financial results reflect a period of rapid change at the club, the result of long-term planning and investment by the board and our owners, to create a sustainable business in the future,’ said Graham Wallace, City’s chief financial and administration officer.

The loss comes at a time when the club is looking to break into the top four of the Premier League and ensure Champions League qualification – which will reap significant financial rewards.

‘We have always said that this transformation will take a number of years and these figures reflect that,’ added Wallace.

The figures do not take into account City’s summer spending spree on players such as Joleon Lescott, Carlos Tevez and Emmanuel Adebayor.

Other than the large transfer costs there were positive signs from City’s financial report. Turnover was up 6% to £87m and a run in the UEFA Cup helped boost ticket revenues by £1.8m.

As a result of the revenue derived from the Premier League TV rights deal with Sky and income from the sale of broadcast rights to UEFA Cup matches, City’s TV income also received a boost – up by 12% to £48.3m.

Sheikh Mansour, who purchased the club in September 2008, has turned the £304.9m shareholder loans he made to City into equity.

‘The owners’ decision to convert debt to equity is in line with their previously-stated financial strategy and is fantastic news for supporters of Manchester City, whose club is now on a secure financial foundation that gives a tremendous platform to build from in future years,’ added Wallace.