Skip to main content

Over half of Manchester City's revenues now commercial

The authoritative Swiss Ramble analyses Manchester City's 2019/20 accounts from his Zurich base.

The main driver of the £57m revenue reduction was broadcasting, which fell £63m (25%) from £253m to £190m, while match day dropped £13m (24%) from £55m to £42m. This was partially offset by commercial rising £19m (9%) from £227m to £246m.

The loss of £125m is obviously not great, but all clubs have been adversely impacted by COVID with no fewer than 9 in the Premier League posting losses above £50m to date in 2019/20. That said, only Everton have reported a larger loss than City with £140m.

The Swiss Ramble's rough estimate is that COVID resulted in £61m reduction to club revenue, split between £30m lost (match day £17m, TV rebates £13m) and £31m broadcasting deferred to 2020/21. Without this, revenue would have been £539m (similar to prior year), but would still have lost £64m.

Although player sales are still not as high at City as many other clubs (e.g. Chelesa £475m since 2015), they have become increasingly important, averaging £38m in last four years. This season will include big money sale of Leroy Sané to Bayern Munich plus Nicolas Otamendi to Benfica.

Despite the decrease in 2019/20, revenue has still grown by £87m (22%) in the last four years, largely due to commercial £68m, though broadcasting is also up £29m. Thanks to TV rebate and revenue deferral, commercial is now the largest revenue stream with 51%.

City have the second highest commercial income in England, having narrowed the gap to Manchester United to just £33m. United’s commercial engine has stalled, hovering at around £275m.

Champions League has been a nice little earner for the club with an impressive €390m received in the last five years, the highest of any English club. City earned (estimated) £87m (€99m) from Europe after reaching Champions League quarter-finals, the highest of all English representatives in Europe.

The wage bill shot up £36m (11%) from £315m to £351m, due to a combination of new signings and contract extensions. This means that wages have increased by £154m (58%) in the last 4 years, comfortably the highest growth of the Big Six.   Following this increase, City’s £351m wages are once again the highest in the Premier League, for the first time since 2013. In fact, this is the highest ever wage bill reported in England.

Thee wages to turnover ratio worsened from 59% to 73%, the club’s highest since 2013, though this was significantly impacted by the COVID-19 revenue reductions. In fairness, even this reported number is not too bad, being around mid-table in the Premier League.




Labels

Labels:

Comments

Post a Comment

Popular posts from this blog

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s...
1 comment
Read more

Spurs to sell minority stake

Tottenham Hotspur is in talks to sell a minority stake in a deal that could value it at up to £3.75 billion and pave the way for Joe Lewis and his family to sever ties with the Premier League football club. Tottenham chairman Daniel Levy is seeking an investment that values the club at between £3.5 billion and £3.75 billion, including debt. While the terms of any deal have not been finalised, City sources expect Spurs to sell about 10 per cent. The club is being advised by bankers from Rothschild on the sale. Tottenham wants to raise fresh capital for new player signings and to help fund the development of an academy for its women’s team, as well as a 30-storey hotel next to its north London stadium. The financier Amanda Staveley, who brokered the deal for Saudi Arabia’s Public Investment Fund to take over Newcastle United, is understood to be among the parties to have expressed an interest in Tottenham. Staveley’s fund, PCP Capital Partners, has raised about £500 million to ...
Post a Comment
Read more

Millwall punch above their weight

Millwall’s season was overshadowed by the tragic death of owner John Berylson following a car accident. The American had been an exemplary owner, beloved by the fans for his leadership, passion and generosity. Millwall’s finances had been pretty good during his tenure, which we shall explore by looking at the most recent accounts from the 2022/23 season, when the club narrowly missed out on a place in the play-offs after finishing 8th. Millwall’s pre-tax loss slightly reduced from £12.6m to £12.2m, as revenue rose £0.8m (4%) from £18.6m to a club record £19.4m and player sales improved from a £0.1m loss to £2.5m profit. However, other operating income dropped from by £1.1m from £1.3m to £0.2m, while operating expenses increased £1.7m (5%) from £31.6m to £33.3m. The main driver of the revenue increase was broadcasting, which rose £1.1m (12%) from £9.1m to £10.2m, though match day was also up £0.4m (7%) from £5.8m to £6.2m. In contrast, commercial fell £0.7m (19%) from £3.7m to £3....
Post a Comment
Read more