City debt rises to £62.2m

Manchester City’s debt level has risen to £62.2m (€89.3m) despite positive signs that financially, the club is heading in the right direction.

Had it not been for the on-going costs of transfers involving players such as Robbie Fowler and Nicolas Anelka, City would have made significant inroads into their debts.

Instead, they posted a loss of £16.8m (€24.1m) for the year ending May 31, 2004, a rise of £1.4m (€2m) from the previous 12 months, causing a subsequent increase in the overall debt, £7.7m (€11m) of which is regarded as ‘soft loans’ from chairman John Wardle.

Although the bottom line figure is not impressive, there are some good news stories as the impact on the Blues’ move from Maine Road to Eastlands begins to be felt.

Turnover increased dramatically, up over 26% to £61.9m (€88.8m), even though City’s 16th placed finish in the Premiership last term saw their merit payment drop by £3.8m (€5.4m).

In addition, the key wage-turnover ratio fell from 72% to just 61%, in line with the figure finance experts believe is sustainable over the long term.

However, unless City chief executive Alistair Mackintosh is successful in his bid to attract new investment into the club, it appears unlikely manager Kevin Keegan will have cash to spend during the January transfer window.