City's finances

Shinboners

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Thread starter #1
I'm sure that Moomba would have gotten around to posting this:

(And isn't it lucky that the Massives got a free stadium?)

http://soccernet.espn.go.com/headlinenews?id=281872&cc=3436

Man City debts rise to £50m


Manchester City's debts have increased to £50million after heavy investment in the team saw them retain their Premiership status last season.

Nicolas Anelka: Costly (NealSimpson/Empics)

City, whose wage bill rose from £24million to £35million during last season, splashed out huge transfer fees on Nicolas Anelka and Robbie Fowler in the year ending May 31 and were rewarded with a ninth-placed finish.


The figures will raise eyebrows, coming only days after Premiership rivals Leeds announced record annual losses of £49.5million and overall debts of £78million, but City's managing director Alistair Mackintosh explained the debts were secured against the club's new City of Manchester stadium.

He told the Manchester Evening News: 'The debt is well-structured. Leeds' situation was different because there was no new stadium and the players were the security.'

City made operating profits of £1.7million against losses of £5.9million in the previous year. However, pre-tax losses rose from £13.9million to £15.4million as a result of player trading.

Their overall debts increased from £30million after chairman John Wardle and his business partner at the JD Sports group, David Makin, made a loan of £10million to help fund signings. Existing debts were also refinanced.

Turnover for the year increased by 75% from £28million in 2002 to £49million this year.

Wardle said: 'The last 12 months have seen significant progression for Manchester City Football Club.

'We emerge from this period of change strong, enthused and well placed to drive the club forward.

'Against a backdrop of a deteriorating transfer market, the decision was taken to continue to invest in the squad.

'This investment paid off handsomely with a ninth-place finish in the Premiership, bringing additional revenue into the club.'

As for the club's future aspirations, Wardle added: 'We continue to push forward on all fronts. We have the basic building blocks in place and we must now look to further improve all aspects of the organisation.'
 

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moomba

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#3
While I haven't had the opportunity to go throught the results in detail, it looks like ok news to me.

- We made an operating profit for the first time in ages, the build of debt is related to to player transfers, and the £20 million spent on developing the new stadium. Take out big money transfers, (I think the side now needs tinkering as opposed to rebuilding), and the spending on the new stadium (which was a one off) the club is running at profit. Not too many clubs you can say that about.

- Turnover increased from £28 million to £49 million. This is in line with projections that have turnover increasing by a further £11 million next year.

- Wages have gone up from £24 to £30 million which is 70% of turnover. I am sure the situation has changed a heap, but going back a few years I read a piece in British Soccer Weekly, United were the only club with a figure lower than that. By way of comparison I believe Leeds are paying 88% of their turnover in wages.

- We are going to win the league, UEFA Cup, FA Cup, and Carling Cup quaddie. That'll have to bring some pounds into the club. ;)

- For a few years the club has been raving about the structure of the debt, which is being repaid over the long term (25 years) at very good rates. Apparently there is a huge difference between the terms we got and the terms of Leeds' debt, that is something they are trying to change. Also £10 million of the debt is in the form of a loan made by the major shareholders of the club.

Anyway, I am looking forwrd to seeing the figures in more detail, I am off to Guinessland tonight, but will comment on anything of interst early next week.

Thanks all for your concern. ;)

Moomba
 

Shinboners

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Thread starter #4
Originally posted by moomba
Thanks all for your concern. ;)
Actually, after starting this thread, I took a long, hot shower.

Contributing to these "you're in debt, nyah! nyah! nyah! nyah!" makes me feel dirty. It's like sinking to the level of those AFL fans (and they know who they are) who believe that profits are an adequate substitute for premierships.
 
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