Man City annual losses rise to staggering €102m

MANCHESTER CITY have reported mammoth annual losses of £92.6 million (€102.8m).

The eye-watering figure represents the second largest annual loss in English football history – Chelsea recorded £140m (€155.4m) losses in 2005 – and emphasises the vast amounts of money invested by Sheikh Mansour since he bought the Eastlands outfit from Thaksin Shinawatra in September 2008.

As the figures run to May 31, 2009, they do not take into account last summer’s transfer dealings.

However, it does include the previous year, when City smashed the British transfer record to bring Brazilian superstar Robinho to the club for £32.5m (€40m).

Another Brazilian, Jo, also arrived although he has since joined Everton on loan, while Shay Given and Craig Bellamy were among a clutch of top-name players who joined 12 months ago.

Since then, of course, manager Mark Hughes has lost his job and been replaced by Roberto Mancini.

City’s chief financial and administration officer Graham Wallace said: “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.

“We have always said that this transformation will take a number of years and these figures reflect that.”

Just as Roman Abramovich has done at Chelsea, Sheikh Mansour has turned the £304.9m (€338.4m) shareholder loans he made to City into equity.

He has also purchased further shares to a value of £89.6m (€99.4m) in a what is termed as a “show of commitment” to City.

“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,” added Wallace.