Wednesday, January 6, 2010

Manchester City's financial records released

And boy do they look good!

You can read the full article on the Official Site, but here's the important bits:

Turnover for the year ended 31st May 2009 increased by 6% to £87.0m (2008:£82.3m), with this increase being offset by a significant increase in operating expenses to £121.2m (2008: £83.9m) primarily driven by increased playing staff costs.

This resulted in a Net Operating Loss of £34.2m (2008: £1.6m) and a Net Loss for the Year after amortisation of player contracts and financing charges of £92.6m (2008: £32.6m).

Match day attendances were up to 42,890 from an average of 42,081 in the previous season, with ticketing revenues ahead by £1.8m mainly as a result of the extended UEFA Cup run. TV Revenues were up 12% to £48.3m mainly as a result of UEFA cup performance, offset partially by a lower league placing than in the previous year.

Revenues from other commercial activities decreased by 8% to £23.3m mainly due to a £4.5m reduction in events revenues, primarily as a result of having no events based activities in the 08/09 season, whereas in the prior year the Stadium held the UEFA Cup Final as well as music concerts and a major boxing event.

Costs relating to amortisation of player contracts increased in the year, rising to £39.4m from £25.4m in the previous year and reflecting again the costs of building a new young playing squad. Interest payable and similar charges increased significantly as a result of the increased level of shareholder loans made to the business during the year.

Manchester City also confirmed today that subsequent to the end of the financial year, it has restructured its Balance Sheet with owner Sheikh Mansour converting all of his existing £304.9m shareholder loans made to the Club into equity. Sheikh Mansour has also purchased further shares to a value of £89.6m as a measure of his long term commitment to the Club.

So what this essentially means is we outlaid £92.6m more than we could make back. Considering the amount of money spent on transfers and wages, it's not too bad — and it's not that much more than the compound interest the Rags have to pay off every year just to stay afloat!

And the last sentence here is the most pertinent. We officially owe Sheikh Mansour nothing (except a shitload of gratitude). Every penny he has spent on the club in 'loans' has been converted to equity. So he just buys more and more shares, although he owns practically 100% anyway.

This is in contrast to the financial cluster-fuck of other clubs such as Portsmouth, West Ham, and Notts County, who are somehow owned by skint billionaires. We really are blessed to in such safe hands, for not just the short-term, but for the foreseeable future.

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