Deloitte Football Money League report: Manchester City FFP hopes lifted by revenue hike - but it's not good news for Manchester United

Increase to £40m should be enough to pass Uefa's test - and avoid a Champions League ban

Manchester City appear set to pass Uefa's Financial Fair Play test – and avoid a Champions League ban – having increased revenues by £40m, according to figures released today in the Deloitte Football Money League report.

The European football world has been waiting to discover if City's results for 2012-13 – which the club are yet to disclose – reveal a big enough reduction in losses to see them comply with FFP.

The financial information published in the report today creates the first real picture of how the club has fared. It reveals City's revenues are up to £271m, enough to keep expected losses around the £60m mark, though financial experts were last night baffled by a key component of the claimed extra revenue.

The Deloitte breakdown shows City's commercial income at £143m and media revenues at £88.4m – both in line with expectations and equivalent to the previous year. It suggests a £40m increase on commercial revenue on the previous year and matchday income has increased by 12 per cent to £39.6m. City's overall revenue figure sees them virtually over the line in passing FFP.

FFP rules state clubs must keep losses to an aggregate of €45m (£37.2m) across the 2011-12 and 2012-13 seasons – and, having recorded pre-tax losses for 2011-12 of £98.7m last December, the club have had their work cut out, although Uefa is open to accepting a club's "direction of travel" as demonstrating an intent to meet FFP regulations. But since they have only marginally passed the test, accountancy practice means they might need to issue their financial results with some form of warning that Uefa may invoke some kind of punishment for non-compliance.


Some observers question whether City's Etihad sponsorship deal, worth around £400m over 10 years, is a means of the club's Abu Dhabi owners artificially injecting cash to reduce losses, but the club deny that and insist the deal is in line with market rates.

Responsive:

 



City suggested last night that a change in the way Deloitte has accounted for revenues may have contributed to the dramatic increase in matchday income.

Ed Thompson, the FFP commentator and analyst, queried how commercial income could have increased so much last season. "It is certainly a baffling figure," he said. "There always looked like there had to be some kind of off-the-wall element to the figure, to mean that City complied with FFP."

City's 2012-13 losses will not be divulged until their financial results are revealed. But since those losses are likely to be lower than 2011-12, they will be permitted to take out of the equation all wages for players signed before June 2010 in the final FFP reckoning. That figure – which might total £60m – also seems certain to be vital to City being able to keep their losses within those allowable under FFP.

In the annually compiled Money League, City have risen above Chelsea for the first time but it is another Middle East-owned club – and another whose ability to meet the demands of FFP will be closely observed – that has made the most eye-catching rise. Paris Saint-Germain, owned by Qatar Sports Investment, nearly doubled their revenue in 2012-13, lifting it from £178m to £342m. That is largely down to a huge deal with the Qatar Tourist Authority – the four-year agreement will see incremental rises each year up to €200m for the final one in 2016. PSG are also backed by a €75m deal with the Qatari telecommunications provider Ooredoo.

The club have faced similar accusations to City over the QTA deal. A special panel will make a decision this spring.

"We expect to see PSG become a mainstay in the top five [in the Money League] in years to come, backed by their ambitious Qatari owners and strong commercial support," said Austin Houlihan of Deloitte Sports Business Group.

Have you tried new the Independent Digital Edition apps?
Caption competition
Caption competition
Latest stories from i100
Have you tried new the Independent Digital Edition apps?

Bleacher Report

Daily Quiz
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

Day In a Page

Isis in Syria: Influential tribal leaders hold secret talks with Western powers and Gulf states over possibility of mobilising against militants

Tribal gathering

Influential clans in Syria have held secret talks with Western powers and Gulf states over the possibility of mobilising against Isis. But they are determined not to be pitted against each other
Gaza, a year on from Operation Protective Edge: A growing population and a compromised and depleted aquifer leaves water in scarce supply for Palestinians

Gaza, a year on from Operation Protective Edge

A growing population and a compromised and depleted aquifer leaves water in scarce supply for Palestinians
Dozens of politicians, bureaucrats and businessmen linked to Indian bribery scandal die mysteriously

Illnesses, car crashes and suicides

Dozens of politicians, bureaucrats and businessmen linked to Indian bribery scandal die mysteriously
Srebrenica 20 years after the genocide: Why the survivors need closure

Bosnia's genocide, 20 years on

No-one is admitting where the bodies are buried - literally and metaphorically
How Comic-Con can make or break a movie: From Batman vs Superman to Star Wars: Episode VII

Power of the geek Gods

Each year at Comic-Con in San Diego, Hollywood bosses nervously present blockbusters to the hallowed crowd. It can make or break a movie
What do strawberries and cream have to do with tennis?

Perfect match

What do strawberries and cream have to do with tennis?
10 best trays

Get carried away with 10 best trays

Serve with ceremony on a tray chic carrier
Wimbledon 2015: Team Murray firing on all cylinders for SW19 title assault

Team Murray firing on all cylinders for title assault

Coaches Amélie Mauresmo and Jonas Bjorkman aiming to make Scot Wimbledon champion again
Wimbledon 2015: Nick Bollettieri - Vasek Pospisil must ignore tiredness and tell himself: I'm in the quarter-final, baby!

Nick Bollettieri's Wimbledon Files

Vasek Pospisil must ignore tiredness and tell himself: I'm in the quarter-final, baby!
Ashes 2015: Angus Fraser's top 10 moments from previous series'

Angus Fraser's top 10 Ashes moments

He played in five series against Australia and covered more as a newspaper correspondent. From Waugh to Warne and Hick to Headley, here are his highlights
Greece debt crisis: EU 'family' needs to forgive rather than punish an impoverished state

EU 'family' needs to forgive rather than punish an impoverished state

An outbreak of malaria in Greece four years ago helps us understand the crisis, says Robert Fisk
Gaza, a year on from Operation Protective Edge: The traumatised kibbutz on Israel's front line, still recovering from last summer's war with Hamas

Gaza, a year on from Operation Protective Edge

The traumatised kibbutz on Israel's front line, still recovering from last summer's war with Hamas
How to survive electrical storms: What are the chances of being hit by lightning?

Heavy weather

What are the chances of being hit by lightning?
World Bodypainting Festival 2015: Bizarre and brilliant photos celebrate 'the body as art'

World Bodypainting Festival 2015

Bizarre and brilliant photos celebrate 'the body as art'
alt-j: A private jet, a Mercury Prize and Latitude headliners

Don't call us nerds

Craig Mclean meets alt-j - the math-folk act who are flying high