A new television broadcasting deal helped Manchester City to report record revenues and a third successive year of profitability last season. Revenues in the 13 months to June 30 increased 21 per cent from last year to £473.4m. Only Manchester United have a higher turnover in the Premier League. The club remains debt free.
City's rise in revenues represented faster growth than its rival Manchester United. However, City is far less profitable, reporting earnings of just £1m, although this is the third year in succession in which it has recorded a profit. It said that the decline from nearly £20m last year was due to a change in the reporting period to bring it in line with other members of the City Football Group owned by Sheikh Mansour. This includes teams in the US, Australia, Japan, Uruguay and Spain.
However, the cost of backing Pep Guardiola was revealed in a 37 per cent increase in the wage bill from £197.58m to £264.13m after several years when it had remained flat. However, club officials describe the 56 per cent wage to revenue ratio (up from 50 per cent the previous year) as 'healthy'. Adjusted for a 12 month period, it is still less than Manchester United's wage bill.
Broadcast increased by 21 per cent to £203m while commercial rose even faster, by 23 per cent, to £218m, as City secured new partnerships such as the NexEn sponsorship on this year’s shirt sleeves. City also hosted a series of lucrative concerts at the Etihad Stadium. Matchday income was £51.9m.
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