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Man City lost US$150M during 1st season after buyout
Source: Agencies |
January 6, 2010, Wednesday
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MANCHESTER City's losses trebled to almost US$150 million during its first season under Sheikh Mansour's ownership, but he has written off its debts to him to help comply with future UEFA regulations.
The member of Abu Dhabi's royal family has invested 394.5 million pounds (US$630 million) since buying the heavily indebted club in August 2008 in a bid to deliver its first major trophy since 1976, financial figures released by the club showed today.
Following the takeover, he immediately funded the €42.5 million purchase of Robinho from Real Madrid along with another large outlay in the January transfer window.
That meant an operating loss of 34.2 million pounds in the year to May 31, 2009 soared to 92.6 million pounds - almost treble the previous year - when the massive investment revamping the squad was taken into account.
Operating expenses rose by almost 150 percent to 120 million pounds primarily due to increased playing staff costs, while - despite City's greater profile - turnover rose by just 6 percent to 87 million pounds.
"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 City's chief financial and administration officer Graham Wallace. "This transformation will take a number of years."
Since the end of the financial year, Sheikh Mansour has emulated Chelsea owner Roman Abramovich by wiping out debts to ensure City doesn't breach UEFA debt controls, which could see clubs banned from the Champions League after 2012 unless they break even on football-related business.
Sheikh Mansour converted all of his 304.9 million pounds worth of loans to City into equity, while injecting a further 89.6 million pounds into the club by purchasing further shares.
"The owner's decision to convert debt to equity is in line with their previously stated financial strategy," Wallace said. "(The) club is now on a secure financial foundation that gives a tremendous platform to build from in future years."
These figures don't take into account transfers in the most recent summer transfer window, which saw more than 120 million pounds spent acquiring talent, including Carlos Tevez, Emmanuel Adebayor and Kolo Toure in an effort to break into the Premier League's top four and qualify for the Champions League.
City, who fired manager Mark Hughes and replaced him with Roberto Mancini last month, is fifth in the standings, two points behind fourth-place Tottenham with a game in hand.
Sheikh Mansour bought City from Thaksin Shinawatra for 210 million pounds after the ousted Thai prime minister fled his homeland where he was due to face corruption charges. Thaksin retained a 10 percent stake, which Sheikh Mansour bought in September.
The member of Abu Dhabi's royal family has invested 394.5 million pounds (US$630 million) since buying the heavily indebted club in August 2008 in a bid to deliver its first major trophy since 1976, financial figures released by the club showed today.
Following the takeover, he immediately funded the €42.5 million purchase of Robinho from Real Madrid along with another large outlay in the January transfer window.
That meant an operating loss of 34.2 million pounds in the year to May 31, 2009 soared to 92.6 million pounds - almost treble the previous year - when the massive investment revamping the squad was taken into account.
Operating expenses rose by almost 150 percent to 120 million pounds primarily due to increased playing staff costs, while - despite City's greater profile - turnover rose by just 6 percent to 87 million pounds.
"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 City's chief financial and administration officer Graham Wallace. "This transformation will take a number of years."
Since the end of the financial year, Sheikh Mansour has emulated Chelsea owner Roman Abramovich by wiping out debts to ensure City doesn't breach UEFA debt controls, which could see clubs banned from the Champions League after 2012 unless they break even on football-related business.
Sheikh Mansour converted all of his 304.9 million pounds worth of loans to City into equity, while injecting a further 89.6 million pounds into the club by purchasing further shares.
"The owner's decision to convert debt to equity is in line with their previously stated financial strategy," Wallace said. "(The) club is now on a secure financial foundation that gives a tremendous platform to build from in future years."
These figures don't take into account transfers in the most recent summer transfer window, which saw more than 120 million pounds spent acquiring talent, including Carlos Tevez, Emmanuel Adebayor and Kolo Toure in an effort to break into the Premier League's top four and qualify for the Champions League.
City, who fired manager Mark Hughes and replaced him with Roberto Mancini last month, is fifth in the standings, two points behind fourth-place Tottenham with a game in hand.
Sheikh Mansour bought City from Thaksin Shinawatra for 210 million pounds after the ousted Thai prime minister fled his homeland where he was due to face corruption charges. Thaksin retained a 10 percent stake, which Sheikh Mansour bought in September.
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