Money woes for Man City

LONDON (AP): Manchester City lost more than $85 million in a year, exceeding the amount allowed under UEFA’s Financial Fair Play rules.

The Abu Dhabi-owned team announced Wednesday that it lost £149.5 million (US$248 million) between 2011 and 2013, the first FFP monitoring period, as it spent heavily to transform the club into a European power.

UEFA is only allowing losses of up to €45 million (US$62 million) in that two-year period. Clubs exceeding that amount risk being sanctioned, and could be banned from playing in Europe.

There isn’t a single mention of FFP compliance in the annual report by the team, which has won two titles – the 2011 FA Cup and 2012 Premier League – since being bought in 2008 by Sheikh Mansour bin Zayed bin Sultan Al Nahyan, a member of Abu Dhabi’s ruling family.

Since 2008, City’s net transfer spending has been £582 million (US$964 million).

After losing £97.9 million (US$162 million) in 2011-12, City almost halved that figure to £51.6 million (US$85 million) in 2012-13. To comply with FFP, City could point to its spending on infrastructure, including a new academy, the cost of long-term player contracts, and losses coming down.

“Growing revenues and controlled expenses are bringing the club to break-even in the immediate future and profitability thereafter,” chief executive Ferran Soriano said.

The 2012-13 losses would have been more than the previous year had City not generated £47 million (US$78 million) by selling “intellectual property,” the club’s image rights, to “third parties” or “related parties.” The £22.5 million (US$37 million) received from “related parties” includes selling the use of the “City” name to New York City FC, the Major League Soccer club that is co-owned with the New York Yankees baseball team and starts playing in 2015.