Manchester City have published their annual report for 2022-23 and announced revenues of £712.8million ($890.2m), a new Premier League record.
After winning a historic treble on the pitch, City also posted a club-record profit of £80.4m off it — almost doubling last year’s £41.7m return.
The club’s first Champions League triumph helped boost broadcasting incomes, while an expanding portfolio of commercial partnerships meant that revenue streams outstripped rivals Manchester United for the third consecutive year.
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Yet City’s record figures come at a time when their finances are arguably under more scrutiny than ever following the Premier League’s charges of alleged rule breaches earlier this year.
The Athletic breaks down what City’s latest set of accounts reveal about the club’s financial position…
Record-breaking revenues – £712.8m
City’s turnover rose across the board on its way to those record-breaking levels. Matchday takings increased to £71.9m, up by £17.4m, partly due to playing four more games at the Etihad than during the previous season.
Matchday income at the Etihad has historically lagged behind that of City’s immediate rivals, though, and they have had to make up the ground in other areas.
Broadcasting revenues jumped to £299.4m last season, up by £50.4m, on account of reaching and winning the Champions League final but City’s commercial takings remain their strongest suit and hit new heights of £341.4m — up by £32m, which the Premier League champions attributed to new sponsorship agreements.
City struck sponsorship deals with Japanese beverage company Asahi and bookmakers LeoVegas over the course of last season, although a newly formed partnership with 8Xbet came under scrutiny following investigations by Josimar and the Daily Mail into the Curacao-based online gambling company’s background.
Partnerships with tyre manufacturers Nexen Tire, cyber protection providers Acronis and LED displays provider Unilumin were also renewed, among others.
City’s total £712.8m revenue surpasses the £648.4m reported by United last month, the previous Premier League record. City’s revenues have outstripped those of their historic rivals in each of the past three seasons.
Wage bill – £422.9m
That was not the only Premier League record to be broken, though. City’s spending on wages increased significantly last season to £422.9m, up from £353.8m the previous year — a jump of £69.1m, almost a 20 per cent increase.
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That surpasses the previous record for an English top-flight side, the £384m spent by United during the 2021-22 season, by almost £42m.
The Premier League champions say the increase is ultimately down to performance-related bonuses following last season’s success on all fronts.
And despite that huge £423m spend, City’s wages-to-turnover ratio remains 59 per cent — only up fractionally from last season and comfortably below UEFA’s recommended upper limit of 70 per cent.
Profit from player sales – £121.7m
Generating income through selling players has become one of City’s strong points over the past few years and the £121.7m recouped in player sales last season is a club record.
That figure is only slightly short of the £123.1m received during the 2021-22 season by Chelsea, whose ability to sell young players at a profit has helped sustain a model of heavy transfer spending over many years.
City have followed in Chelsea’s footsteps, earning more than £330m in player sales over the past five years, often by shifting academy talents who are unlikely to break into the first team.
During the 2022-23 season, Romeo Lavia, Gavin Bazunu, Samuel Edozie and Juan Larios all joined Southampton despite only making a handful of senior appearances between them.
But a significant proportion of last season’s £121.7m came through the departures of first-team players, with Gabriel Jesus and Oleksandr Zinchenko moving to Arsenal and Raheem Sterling swapping the Etihad for Stamford Bridge.
Last summer’s net spend – approx. £84m
These accounts only concern the 2022-23 season — specifically, money spent and received up to and including June 30, 2023. Any outlay in the transfer market after that date is not included in these figures.
But City subsequently had a busy summer, signing Mateo Kovacic, Josko Gvardiol, Jeremy Doku and Matheus Nunes from Chelsea, RB Leipzig, Rennes and Wolverhampton Wanderers respectively.
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On the other side of the ledger, Riyad Mahrez, Cole Palmer and Aymeric Laporte all departed for substantial fees, while the sales of Carlos Borges, James Trafford, Shea Charles and others continued that steady flow of income from the academy.
In a note included in these accounts, City reveal that their net spend on transfers ahead of this season was approximately £84m.
Any mention of the Premier League charges?
This is the first set of full-year accounts City have published since the Premier League charged the club with more than 100 alleged breaches of financial regulations.
GO DEEPER
Man City charges explained: The accusations, possible punishments and what happens next
Typically, company accounts disclose any ongoing risks that could impact their performance in the future. Under the heading of ‘Risks and Uncertainties’, City note the charges levelled against them by the Premier League and reiterate their confidence that they have not breached any regulations.
“On 6 February 2023, in accordance with Premier League Rule W.82.1, the Premier League referred a number of alleged breaches of the Premier League Rules by Manchester City Football Club to a commission under Premier League Rule W.3.4,” one section reads.
“In February 2023, in response to the charges, the club issued a public statement that it welcomes the review of this matter by an independent commission, to impartially consider the comprehensive body of irrefutable evidence that exists in support of its position.“
(Top photo: Getty Images)
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