LONDON: Manchester City lost 121 million pounds ($191 million) in the 12 months to May 31, having spent more on wages alone than it earned.
After sustained huge spending on players in an effort to win its first trophy since 1976, the English Premier League club released its annual report on Friday showing that it paid 133 million pounds ($210 million) in wages during Abu Dhabi billionaire Sheikh Mansour’s first full season in charge.
That is 8 million pounds ($12.6 million) more than its entire turnover.
Sheikh Mansour has spent more than 300 million pounds ($475 million) on players including Carlos Tevez, Emmanuel Adebayor, Robinho and, most recently, Mario Balotelli and James Milner since buying City two years ago from former Thailand Prime Minister Thaksin Shinawatra.
City finished fifth in last season’s Premier League, one place outside qualifying for the lucrative Champions League. City failed to win a trophy.
"We are where we expected to be at this stage of the club’s transformation," Sheikh Mansour said. "While it must be conceded that we fell short of our ambition for the 2009-10 season, we should not underestimate the importance of the club achieving its best-ever finish in the Premier League."
City said turnover increased almost 44 percent last season to 125 million pounds ($198 million). It qualified again for the Europa League tournament, drawing 1-1 with Italy’s Juventus on Thursday in its most recent game.
While City hired several costly players on high wages, it also expanded its total workforce from 302 to 413 employees — helping drive up salary costs by 61 percent.
The amount "paid to third parties in respect of directors’ services" went up almost tenfold, but remained negligible in terms of the club’s total losses at 313,000 pounds ($496,000).
City is fourth in the Premier League standings after six games this season, having beaten defending champion Chelsea 1-0 last weekend. City hosts newly promoted Newcastle on Sunday.
