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City's impressive financial feat

The Swiss Ramble reports on Manchester City’s 2020/21 accounts when they swung from £125m pre-tax loss to £5m profit, as revenue rose £92m to £570m, due to deferred TV income and CL, while profit from player sales up £29m to £69m.

It is a pretty impressive feat for City to post a profit in 2020/21, when all clubs had to contend with a full year of the pandemic. The other Premier League clubs that have published accounts to date have all made big losses.

They managed to make money, despite revenue being significantly impacted by COVID. The Swiss Ramble estimates the revenue loss as £58m in 2020/21 (mainly match day), which would make £89m lost over the last 2 years.

Main reason for revenue growth was £107m (56%) increase in broadcasting from £190m to £297m, including deferred revenue from 2019/20 and higher CL money, plus £25m (10%) growth in commercial to £272m, which offset COVID driven reduction in match day, down £41m (98%) to £1m.

Few clubs have made big money in a transfer market somewhat deflated by COVID, but the profit from player sales rose £29m from £40m to £69m.  Player sales have not been as high at City as many others (e.g. Chelsea £462m since 2016), but have become increasingly important. This season will feature sales of Torres to Barcelona, Harrison to Leeds, Nmecha to Wolfsburg and Ilic to Verona plus Jadon Sancho sell-on clause.

The Swiss Ramble estimates that City earned €120m for reaching the Champions League final, just below winners Chelsea €121m, but much more than previous season €95m.  The Champions League has been a nice little earner for the club with an impressive €422m received in the last five years, the highest of any English club.

The £272m commercial income is now the highest in England, having overtaken Manchester United £232m. In the past two years City have grown £45m, while United have dropped £43m, as their fortunes have contrasted on the pitch.

The average attendance of 54,219 (for those games played with fans), was the fifth highest in the Premier League, around 18,000 below their Manchester neighbours 72,726, and just above Liverpool 53,143.

The wage bill rose £3m (1%) to £355m, a new club record, due to a combination of new signings and contract extensions. Wages have increased by £157m (80%) in the last 5 years, the highest growth of the Big Six.   £355m wages are the highest in the Premier League, having overtaken Manchester United in 2020. In fact, this is the highest ever wage bill reported in England.    The wages to turnover ratio improved from 73% to 62%, one of the lowest (best) in the Premier League.

 

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