Manchester City have announced a net loss of £ 126 million for the 2019/20 season due to a significant reduction in revenue during the coronavirus pandemic, although the club insists they will quickly return to profitable next season and beyond.
City’s total revenue for last season fell by a significant 11% to £ 478.4 million, after being £ 535 million in 2018/19, meaning that almost £ 60 million was shaved off the club’s annual revenue in 12 months.
Man City expects to return to profit 2020/21 | Visionhaus / Getty Images
The forced three-month delay for the 2019/20 season meant that a number of matches in the Premier League, FA Cup and Champions League were played after the official end of the season on June 30, which means any broadcast revenue or other income from these games is not included in the accounts and postponed to 2020/21 accounts instead.
The closure of the Etihad Stadium affected match day revenue, while there were broadcast discounts that went to revenue, as well as refunds of season tickets. City also makes it clear that they continued with all other financial commitments in their entirety and maintained support for staff and society.
The city’s immediate forecast is that 2020/21 will provide a profit due to deferred income and a less affected season overall. The next set of accounts also includes Leroy Sane’s sale to Bayern Munich, which was officially completed on July 3, 2020.
The sale of Leroy Sane is included in the season accounts Alexander Hassenstein / Getty Images
Speaking to ManCity.com, Chairman Khaldoon Al Mubarak sought to allay any fears fans may have about the club’s financial health by explaining that a deliberate change and diversification of revenue streams as part of a long-term strategy means the club is “… not completely dependent on revenue streams that have been most exposed to the ongoing effects of COVID-19. ”
CEO Ferran Soriano commented: “A better financial picture of the COVID years will be given at the end of the 2020-21 season, when the two seasons are combined and normalized.”
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