MANCHESTER, England (AP) — Manchester City’s losses soared to nearly 200 million pounds ($315 million) in the latest financial year amid a lavish spending spree that helped the club end a 35-year trophy drought and qualify for the lucrative Champions League for the first time.
Figures released Friday showed the northwest club had net operating losses of 160.5 million pounds ($253 million), with the figure rising to 194.9 million pounds by adding on «additional exceptional charges» of 34.4 million pounds.
They are the highest losses ever by a British club in a single year, with its staggering wage bill of 174 million surpassing that of Chelsea (172 million pounds) and Manchester United (152 million).
Bankrolled by Abu Dhabi billionaire Sheikh Mansour, City spent heavily last year on improving its squad with world-class players such as David Silva and Yaya Toure and was rewarded by winning the FA Cup – its first major piece of silverware since 1976.
Roberto Mancini’s team also finished third in the league to reach this season’s Champions League, which helped entice the likes of Argentina striker Sergio Aguero and France midfielder Samir Nasri in a further outlay of 74 million pounds in the offseason.
City leads the league by five points after 11 matches as it looks to claim a first English title in 43 years.
«The result is consistent with the guidance … that losses would peak in the 2010-11 financial year, as a result of the accelerated investment program that the club undertook between 2008 and 2011,» the club said in a statement.
In view of UEFA’s financial fair play regulations, which came into operation in July, City’s chief operating officer Graham Wallace said: «Our losses … will not be repeated on this scale in the future.»
Under those regulations, clubs face being barred from the Champions League and Europa League if they cannot break even on football-related business.
City’s overall turnover rose 22.5 percent to 153.2 million pounds and commercial revenue was up almost 50 percent to 48.5 million pounds. TV rights rose 27.4 percent to 68.8 million pounds.
In the current financial year, which started on June 1, City has began its Champions League campaign – it is second in a group that also includes Germany’s Bayern Munich and Italy’s Napoli with two matches remaining – and agreed a 10-year deal with Etihad Airlines to sponsor the club’s stadium.
It was widely reported in the British media that City will earn around 40 million pounds per year from the stadium deal. Etihad already has its name on City’s shirts.
«We should not underestimate the club’s other major achievements in terms of its continued commercial performance, groundbreaking partnership initiatives, expanding contribution to the community, and independent recognition for the quality of our facilities and match day offerings,» chairman Khaldoon al-Mubarak said.
http://sportsillustrated.cnn.com/2011/soccer/11/18/mancity.losses.ap/index.html
trancon14 
Amazing spending amid the crisis
I believe that FIFA should regulate the clubs expenses wages and transfers so that there is much difference between them and other teams.
Figures released are excessive because it is bankrolled by billionaire Sheikh Mansour Abu Dhabi and the other teams can´t afford these losses.
Manchester City will become the best team in the premier due to uncontrolled spending.
I think the best way to stop this money expend is setting a spending cap.
So, the football competitions will be more balanced.
Here, in Spain, the reality is so clear. Real Madrid and Barcelona gain all the games. Other clubs level are so very poor, and the only reason is that they do
not have much money.
Then our National League is very bored because always gain Real Madrid or Barcelona.
I think exactly the same as you, it reminds me of the Scottish Premier League and as a fan of Atletico Madrid my discontent is greater.
Thanks for your opinion 😀
Manchester City one of the best team in England in the lastest years and very important team in Europe because of the large amount of money by Sheik Mansour but i don´t think this is good for football because in few years Manchester City spend a lot of money in few years and the team has become very important around the world only because Manchserter City buy a lot of football stars.
Manchester City pursues the dream of becoming one of the biggest teams in England and Europe, so the club has spent much money on signings of key players to compete for titles. This has generated huge losses but instead have managed to obtain some degree last year. The effort was rewarded this year, because they are the leaders of the Premier League. No doubt if they manage sports targets the financial problems will disappear.
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