Manchester City: Wages & Financial Fair Play

Manchester City: Wages & Financial Fair Play

Manchester city’s latest annual financial report shows that the club are finally becoming self-sufficient. 2016 was the first year since their takeover in 2008 that owner Sheikh Mansour didn’t need to inject the club with cash. In revenue terms, their second only to Manchester United, recording a total 392 million pound for the 2015-16 season, an eleven percent growth on the previous year. This total breaks down in to 178 million in commercial income, 52.5 million in matchday, and a 161 in broadcasting income, bolstered by their lengthy run in the Champions League. The club also made a 20.5 million pound profit after tax, only their second of the current establishment, continuing their positive trend of growth. However it hasn’t always been this rosy. In 2011 Manchester City made a loss of 197 million pound, the largest ever recorded in English football. In 2013 they were subsequently charged by UEFA for failing to comply with the break-even rule of financial fair play. For this they will find 16 million pound and the punishment included being prevented from increasing their wage bill in 2015 and 2016, now with 59 percent of the 1.2 billion invested by their owners since 2008 being spent on player acquisition, City’s wage bill was often turbulent and always growing. These sanctions therefore presented something of a problem for the club One method that the club used to negotiate this sanction was the outsourcing of staff. Manchester City are owned by parent company City Football group who also owned Melbourne City and New York City, as well as a minority stake hold in a Japanese J League team. In 2013 Manchester City employed a total of 449 staff. By 2016 the speaker was down to 320. Rather than losing workers, the club actually transferred their employment to accompany working with City Football group. This company is now responsible for their salaries and in turn bills CFG and the club to cover the cost. In Manchester City’s accounts the cost of this is transferred from the salary section to be included in other expenses, an area accounting for everything from the cost of running the stadium to paying off managers who were sacked before their contract ends. After 2013 the club’s wage bill dropped and despite continuing to sign expensive new players, it never rose to pre drop levels. In fact Manchester City’s wages to turnover ratio is now at fifty percent, considered very healthy for a football club. This is quite an achievement considering that not too long ago the club’s wages amounted to more than that total revenue. Whilst this action wasn’t solely responsible for the drop in wages, it did contribute to it and the sensible planning of chairman Khaldoon al-mubarak and chief executive Ferran Soriano has helped Manchester City become one of the most financially stable clubs in the the Premier League.

71 thoughts on “Manchester City: Wages & Financial Fair Play

  1. Nice video. Very understandable. How about a video on FFP and how City were taken for a ride while relaxing the rules for clubs like Inter and AC Milan?! 🙂

  2. Such a great video, as always! I have a few ideas for some of your next videos, such as: Pro Vercelli – One of the most successful clubs in Italy but are now the sleeping giant of Italian football, or how about a video of the financial demise of Leeds United (one of the biggest clubs in British history) in the early to mid-2000's and how they are still to recover and are languishing in the second division after once being relegated down to the third division?

  3. these videos are effing great… how are they made though? is it like an app? or some adobe wizardly? it baffles me to no end

  4. Wonderful as usual.😘
    I can guarantee it will take at least an hour to explain United's financial structure. and an hour more to cover the billion sponsors they have 😂😂😂

  5. I'm not trying to be argumentative, I'm genuinely asking what you think – would it be reasonable to characterize the payments from etihad to Mcfc as "cash injections" as you termed them in the video given that the owners are the same for both entities (obviously not 100% but some ownership)?

    I suppose that there is benefit to advertising for Etihad but I think the kit deal is one of the largest in the world so I can understand why some people see it as indirect ways to pump cash into the club

  6. Melbourne City were called Melbourne Heart before the City football group took over they were a nice & friendly club but now the money has gone to there head

  7. By shifting some of the wages to be classified as "other expenses", Man City is still spending the same amount, or more as they acquire more players, right? So basically they just found a way around the ruling, and escaped further punishment. This helped their bottom line by getting more revenue in (commercial & broadcasting) as a result of better results with better players. Right?

  8. Love the videos. Just out of interest, can you play the predictor game from Ireland as well? Cheers.
    Would love a video on Leeds' revival under Monk. 😉

  9. Let's not forget that the city commercial "income" largely comes from massively overly inflated sponsorships that Monsour or his family controls. To say he's not pumping money in to hold up the club's finances is at best an obfuscation.

  10. That is what I would do if I bought a club; pump a lot of money in for a few season (getting it to "big club" status) then let it go on its own.

  11. What about some of the deals that looked a bit dodgy on the surface? Companies that are close to the owners paying tons of money through sponsorship deals, especially for the stature of the club they were back then!

  12. they are not a healthy club, in terms of other expenses they are hiding the over wages and over priced players also. talking about one ucl season is nothing compared to other clubs like chelsea, manu and arsenal have been doing for a long time. but still thanks for the info. it was a mind bogler to me, how they made a profit. now i can sleep happily knowing they are not. they are just cheating by hiding their losses.

  13. Gee I wonder why the 6 highest payroll teams also hold the 6 best records in the Premier League? It's like the New York Yankees of the late 90's-early 00's… the championship's already been bought and paid for before the season even starts. How can it even be entertaining to watch if you're not rooting for one of those 6 teams? (serious question from an American who couldn't care less about "football")

  14. It's also because the plastic fans are coming out and are growing in numbers which means more shirts and stuff and going to be sold

  15. One of the best football channel on Youtube that doesn't talk utter garbage or recycle videoclips of people kicking balls.

  16. These videos are quality, the information is clear and is presented in an visually appealing way. You also have mad skills with Sharpies 😉

  17. What this video failed to explain is how the owners made unethical dealings with his friends and cohorts in pumping exorbitant money into the club and cover it under the banner called "investment" and "sponsorship"…

    Financially stable club? Yes… Only through unethical dealings..

  18. LOL who is Man City’s commercial income source? Oh wait… it’s Sheik Mansour lol he’s still finding his club dinlo.

  19. Essentially they got a slap on the wrist, when they should – along with PSG being excluded from CL. Furthermore UEFA promised they would look into sponsorships that were unrealistic to their returns, and did nothing of the sort. A rather half hearted attempt unlike your other vods to show the real picture. If their owners lost interest, the club as it is would fall like a deck of cards, because much of their income is inflated by their funneling of money into the team via their own sponsorships or ones of their network. Calling it a self-sustainable club is grasping at straws at best, and a flat out lie at worst.

  20. No club could compete against state-funded clubs. Not even Manchester United or Real Madrid. UEFA should do something about this before football bubbles exploded and more clubs went bankrupt.

  21. Fucking cheaters. UEFA should've banned them from the CL for five years and gave them a transfer embargo along with it.

  22. i am sorry but it´s still hard to belive their are established,they sepnt soo much in the past years.they just tranfer the bad things to oother companies in the city group

  23. I'm planning a research proposal that is focused on FFP and other areas. – But this video has seriously sparked interest in other potential areas to look into. As always, interesting and insightful Tifo.

  24. Would have been nice if you mentioned how EUFA changed the rules of FFP a month before the end of the financial period to ensure City failed because they were in compliance otherwise.

  25. They must be charged strictly by the English FA for making the Premier League as just the one team league when they would pump the overloaded money to buy every victories,draws and trophies which they would compete!!!

  26. FFP is bullshit! It’s destroying football. Teams like Man city and Man utd etc will just et bigger and richer. My team birmingham city and our rivals Aston Villa are just going to get smaller and poorer. How is it fair that my club has super rich owners yet we are under FFP for losing money but our owners could happily say, “here you go” debt solved. Sooner it fucks off the better

    Edit: these videos are awesome!

  27. I miss these older videos, Tifo always makes great videos but there's something about the slower, calmer voice with the relaxing song in the background like they used to do.

  28. They cooked the books to make themselves almost solvent. Moving wages from a highly regulated sector to an unregulated sector. That's why they pay the lawyers the big bucks… oh wait they don't CFG do.

  29. Would you look at that, leaks of UEFA cover up with Man City and psg in breach of ffp rules, you might want to remake your video with update to what really happened

  30. Cheski , City, PSG I will never consider them a big club fucking plastic club . They didn’t start with blood and sweat they didn’t earn the medal with blood sweat and tear they were bought by billionaire buy their way through top. Fuckin hate them they ruin football

  31. FFP is kind of a bullshit rule anyway that was designed to keep traditionally big clubs in control by stifling any investment in smaller clubs. It's really screwed over the likes of Newcastle United and Aston Villa

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