• Other Financial Issues

    Manchester City and Der Spiegel: Second Skin

    The Der Spiegel allegations in relation to Manchester City seem to have tongues wagging at present, but are City’s activities illegal, deceptive or just pushing the boundaries of what is within the regulations? What are the FFP rules? The short version is that clubs are allowed to make an FFP loss (which is an accounting loss excluding infrastructure, academy, women’s football and community scheme costs) of €5 million over three years. These losses can be extended to €30 million if the club owner is willing to inject the difference into the club by buying shares. The long version is 108 pages long and not recommended unless you are on a…

  • Other Financial Issues

    Manchester City and Etihad Airways: Economy plus?

    History The 2007/8 Premier League season could not finish fast enough for Manchester City. The final match under Sven-Göran Eriksson was a nine-goal thriller at Middlesbrough, where unfortunately City conceded eight of them. The club’s reputation at the time was that of the Keystone Cops of English football, a bunch of mavericks in blue where the wheels were always on the brink of falling off. In those days their hated local rivals at Old Trafford looked upon City with mocking contempt rather than as an enemy, saving their true loathing for Liverpool and Leeds United. Behind the scenes things were even worse. Whilst City fans were excited at the start…

  • Financial Results

    Manchester City: Some girls are bigger than others

    Introduction No trophies, third in the league, and the costs of embedding a new managerial regime may have had some thinking City would struggle financially in 2016/17 The headline figures are mixed, income is up significantly, profit before interest down 80%, but the club claims to have no debt and is self sufficient. Direct comparatives with the previous year’s profit and loss account figures are slightly distorted by City having a 13 month period of account for 2016/17, so bear this in mind when looking at growth compared to 2015/16. There’s nothing sinister in our opinion in changing the year end to 30 June. Income Clubs have three sources of…