Man City announce £126m losses amid coronavirus pandemic – backing up Pep Guardiola’s transfer fears over Haaland
MANCHESTER CITY have announced losses of £126million for the 2019-20 due to the Covid pandemic – as boss Pep Guardiola explains why they have never spent a nine-figure sum on one player.
With Guardiola refusing to be drawn on his interest in £100m-rated Borussia Dortmund goal sensation Erling Haaland, the Premier League leaders also revealed revenue for the period until June 30 was down 11% to £478.4m.
City’s finances were hit as revenues from last season’s Champions League, Prem and FA Cup matches held after that date were not included.
Leroy Sane’s move to Bayern Munich – which could be worth £54.8 million to City – also went through just after the cut off.
But the club lost out on ticket and stadium revenues towards the end of last season, refunds were handed out to season ticket holders and broadcast revenues were cut.
However the Etihad giants are confident they will return to profit in the current financial year.
Guardiola has cautiously defended City’s absence from the really big-buyers, with £63.6m their record for Rodri from Atletico Madrid in June 2019.
He said: “The fact we have not spent, for one player, a lot of money, gives you advantage.
“Football is a team game, everyone makes his contribution. It’s not just one player, it’s for absolutely everyone.
“So far the club has decided not to spend close to £100million for a player, or more than £100million on a player.
“Maybe in the future it is going to happen if they decide it is necessary to improve the team for the next five, 10 years, for many reasons.
“But so far the club, the organisation, the CEO, the sporting director decided not to do it and that’s why they didn’t do it.”
Chairman Khaldoon al Mubarak insists City’s are still in a healthy financial health.
He said of their losses: “Like most organisations, we did not have a business strategy for a global pandemic.
“But what we had – and still have is a business that is fundamentally strong.
“It has been built carefully over a decade and upon more than a century of history.
“Our long-term approach means that we are now not wholly dependent on income streams that have been most vulnerable to the ongoing impact of Covid 19.
A better financial picture of the Covid years will be provided when the two seasons are combined and normalised.
Etihad chief executive Ferran Soriano
“Our expectation is that we will return to profitablility in the 2020-1 financial year.”
Chief executive Ferran Soriano said: “Clearly the accounts in isolation are not the best representation of the reality of the season.
“There was delayed player trading and numerous games played after June 30 – the revenues of which will be accounted for in 2020-1.
“A better financial picture of the Covid years will be provided then – when the two seasons are combined and normalised.”
City made a £10million profit in the previous 12 months and the club’s latest results are a stark reminder of the effect the Coronavirus has had on football.
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Premier League chief exec Richard Masters warned that clubs in their competition could lose £2 billion due to the pandemic.
UEFA have said they will loosen their financial fair play rules and that Covid related losses will not be counted.
City – who had a two year European overturned by the Court of Arbitration for Sport in July – are confident they will be within the guidelines.