Man City report £90m losses
Manchester City report £90m losses in latest accounts
Wednesday, 06, Jan 2010 01:55
By Alistair Potter.
Premier League big-spenders Manchester City made a loss of more than £92 million in the year up to May 31st 2009, the club have revealed.
In the first full year since Sheikh Mansour bin Zayed Al Nahyen took control of the club, City revealed their overall losses skyrocketed from £32.6 million in 2008 to £92.6 million last year.
Similarly, the club's overall operating expenses increased by almost 50 per cent, up from £83.9 million to £121.2 million.
Despite the worrying figures, which are somewhat skewed by the massive outlay for new players over the past 12 months, chief financial and administration officer Graham Wallace said they should not be a cause for concern among supporters.
"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," he said.
"We have always said that this transformation will take a number of years and these figures reflect that."
With the publication of the club's latest financial accounts, it has also been revealed that Sheikh Mansour converted his £304.9 million shareholder loans to the club into equity, increasing his overall holding.
By purchased additional shares to a value of £89.6 million, he has also substantially increased his overall control of the boardroom.
Wallace claims this is "a measure of [Sheikh Mansour's] long-term commitment to the club".
"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," he added.