We must be in Premiership, says City chairman

Manchester City chairman David Bernstein says it is imperative that the club remain in the Premiership when they re-locate to the Commonwealth Games Stadium next season.

Bernstein’s comments come in the wake of the news that City have offset a £13m (€20.5m) loss by securing the biggest financial deal in their 108-year history.

The chairman has managed to secure the backing of American investment bank Bear Stearns for a sum which in time could total £44m (€69.6m).

He said: “As we move into a new stadium next season our income levels as a Premier League club will shoot up.

“If you compare our income for last season with next season our income will more than double.

“So we are playing for very big financial stakes. That’s why we need to stay in the Premier League,” he told BBC GMR.

The bank have initially brokered a £30m (€47.5m) bond, based on City’s loyal fan base.

“The deal is secured on the future sales of season and match day tickets. The loyalty of our supporters was a key factor,” Bernstein added.

“Other clubs have tried and failed to raise money in this most difficult climate for football finance.

“When we presented (our proposal) in London the fact that we had 28,000 fans in the Second Division was crucial.

“This is not a bonanza, the substantial funds need careful handling. This creates a building block for the future, and provides the club with even more stability,” he told the club’s website, www.mcfc.co.uk.

It is understood City were able to secure this funding up until 2027.

Bank spokesman Nitin Bhandari said: “This innovative financing has enabled one of the best supported football clubs in the UK to access competitive long term funding via the capital market.”

The timing of the deal is ideal for City as Kevin Keegan has spent £21m (€33.24m) on new players.

The club has also continued to invest in the state-of-the-art training facilities at Carrington and in preparing the former Commonwealth Games stadium at Eastlands ahead of the club’s arrival next year.

City returned to the Premiership this season after a year in the First Division.

The club’s financial report reveals that after relegation turnover dipped by from £32m (€50.6m) to £28m (€44.3m).

Despite a slide in TV cash and gate receipts, merchandising and sponsorship activities all rose impressively.

As Keegan rebuilt the squad for the Premiership, bringing in the likes of Eyal Berkovic, John Macken and Ali Benarbia, the club’s wage bill rose from £16.2m to £21.8m.