Manchester City have announced huge losses for the second year in a row, with the club losing €120 million during the last financial period.
City reported turnover for the same period of €283m, the highest in the club's history and a rise from €184m the previous year, but still operated at a significant overall loss.
The club’s inability to progress from the Champions League group stage is believed to have had a huge impact on their turnover.
However, the figures represent a marked improvement from the season before, when City lost a total of €243m.
Meanwhile, the club posted marginal increases in gate and TV revenue, and almost doubled their commercial revenue from €80m to €148m.
Moreover, it is believed that around €98m of the losses originates from contracts that pre-date 2010, from which City expect to get some kind of relief.
The overall figures have allowed the Premier League champions to remain confident in their ability to meet Uefa's Financial Fair Play guidelines as €18.4m of their losses have come from infrastructure and youth development costs.
The club’s annual statement for the year ending May 31, 2012, said: "The capital base of the club has also been strengthened through the issuing of £169m [€207m] in new equity during the year, avoiding debt-based funding and continuing to ensure that the club is virtually debt free.”
Chief executive Ferran Soriano also said: "What I have found is a club on the verge of a historic transformation, reinforced by a genuine commitment to doing things well.
"It is a club with a rich history and the potential for an even brighter future."