The Premier League champions are poised to wipe a third off of their English-record £197m (€243m) deficit recorded last year as they remain on course to reduce debt to €99m by 2013By Wayne Veysey | Chief Correspondent
Manchester City are poised to announce a dramatic £60 million (€74m) decrease in their financial losses this autumn, with a possible figure of £100m (€124m) in total over the next 12 months, Goal.com has learned.
The Premier League champions are expected to wipe a third off of the £197m pre-tax loss recorded last year, the biggest ever deficit in English football history, in their forthcoming results.
The club are then set to curtail their losses by a similar amount at the end of 2013, which should trim the overall deficit to below the £100m (€124m) mark and possibly even as low as £80m (€99m).
City have been trying to lessen their reliance on the extravagant funding of billionaire owner Sheikh Mansour over the last 12 months in order to meet Uefa’s Financial Fair Play (FFP) requirements.
The club will release their latest set of accounts in November, which is expected to record a considerably improved financial position in the 2011-12 season compared to the previous year.
The results will reflect the benefit of a record-breaking £40m-a-year (€49m) sponsorship arrangement with Etihad Airways, the £60.6m (€74.9m) prize money the club received for winning the Premier League plus the £26.5m (€32.7m) from Uefa for their first year participating in the Champions League.
|14/1||Manchester City are 14/1 to beat Real Madrid 2-1 with Paddy Power|
FFP allows losses to be capped at €45m [£35m] in total over the first three years - from 2011-2014 - with the 2011-12 season financial year the first to be monitored.
However, the Uefa break-even calculation is not the same as a club’s statutory accounts, with expenditure such as youth development, stadium infrastructure and community development not counting towards FFP.
City chiefs, who have admitted they face a severe challenge to get their finances in order to meet FFP, are keen to demonstrate to Uefa a downward trend in their losses.
Nevertheless, the forthcoming accounts include the period when City spent vast sums on the likes of £38m (€47m) striker Sergio Aguero and £24m (€30m) winger Samir Nasri.
New chief executive Ferran Soriano is keeping in close consultation with Uefa chiefs and before the end of next year the club expect the losses to be closer to £80m (€99m)
City were relatively restrained in the last transfer window, spending a net £23m (€28m) on new players. The sums spent on arrivals such as Javi Garcia, Maicon and Scott Sinclair were offset by shipping out high earners such as Emmanuel Adebayor, Adam Johnson, Nigel De Jong and Roque Santa Cruz, activity that has saved around £20m (€24m) a year in wages.