Being an English Premier League title hold means a lot for Manchester City, and it perfectly explored all commercial possibilities of being a champion and managed to raise its commercial revenues to a respectable level. Last year, Manchester City reported a net loss of around £189.6m which is now reduced to £93.4m according to its latest issued financial figures. Its operational revenues surged by more than 51% to £231.1m making it one of the best performing clubs in English premier league on both financial and performance front. It was the first UEFA Champions League season where City participated and its involvement there helped it raised around £22m commercial revenues. Moreover, its sponsorship deal with Etihad Airways also enabled it raised its operational revenues from £48.5m in 2010-11 to £97m this year. City also somehow manages to restrict its loss making operations whereby it could reduce its operation losses from £194.9m to £104.1m this year. According to financial reports issue by City, it has invested heavily on buying big players, i.e., around half a billion, and because of this heavy investment with a long run prospect, it could not present a respectable balance sheet ever since Sheikh Mansour bought the club back in 2008.
However, club’s wages bill has increased considerably coz of hiring new staff and officials. Last year, it reported a total wages bill of £153.7m which has now risen to £178.2m. Perhaps, City has one of the largest forces of manpower consisting both players and administrative staff. Precisely, there are 237 players under City’s contract while admin staff consist around 239 officers. Club’s financial reports say, “The club’s performance in the 2011-12 reporting period demonstrates the tangible and positive impacts of that investment across many areas of our operations.
“With a relatively young squad that has won an FA Cup and a Barclays Premier League in consecutive seasons, our recruitment needs have been reduced.
“As a result, the amortisation of player contracts and the net impact of player trading on the club’s bottom line has decreased by 27% (£30.3m) over the previous year, consistent with our belief that the peak of the club’s investment in its playing squad has passed.”
So, City seems to be leading from the front in both of its roles whether its on-field performance is concerned or its long run strategic plans, it shows excellent results in both segments. This year too City is on second spot of leaderboard in EPL, and it most likely be the winner for second consecutive term, which could lead to complete wipe out of its losses next