Every year in sports there has to be a winner; there are of course losers too, but as an Arsenal fan we won’t go into that too much.
Whether it’s about winning the FA Cup, a green jersey at the US open or clinching the LV County Championship it doesn’t really matter, as long as there’s a champion. “They’re can be only one” according to the Highlander, and that’s why this year’s Champion of Financial Craziness goes to the only true team in Manchester: Manchester City.
This month The Citizens Aka Man City, or Manchester City, released their financial figures for the 2010-2011 season. According to the club’s report, Manchester City made a staggering loss last year of £194.9m, mainly due to a player wage bill that stands at approximately £173.9m a year.
Flicking through Manchester City’s financial books is an eye-opening experience, and one which is certain to cast dismay and horror upon the average football fan; that is, until you look at the big picture.
The fact that Man City spent £81.3m this season and a whopping £105m last year is unavoidable. Yes the club spent an absurd amount of money on players, and yes a huge reason for the subsequent financial loss is mainly due to transfer fees and player wages. However, if you ignore this financial anomaly and drill down into the figures you’ll see that overall commercial revenues are up by 22.5%, this includes;
- A 27.4% increase in television rights
- A 49.7% increase in commercial partnership revenue
- A 8% increase in match day ticketing revenue
The club also points out that the report doesn’t include the recent sponsorship deal with Etihad Airways which is set to bring in £400m over 10years. The financial report also highlights the systematic overhaul of Manchester City’s youth academy and training programmes which are currently underway, and are seen by many within the club as a significant investment in Manchester City’s future.
The Bottom Line
Manchester City’s bottom line may look great in the headlines, but the true picture is one of a club rapidly progressing as a force to be reckoned with in both domestic and international football. If you add to that a respectively healthy growth from revenue figures, the potential to win the Barclay’s Premiership and the overall investment tied up in player assets then you’ll see that Manchester City’s books aren’t as unsustainable as they first appear.