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.

News
The two faces revealed by the ultraviolet light
newsScholars left shaken after shining ultraviolet light on 500-year-old Welsh manuscript
News
Rosamund Pike played Bond girld Miranda Frost, who died in Die Another Day (PA)
news
Arts and Entertainment
books
News
newsHow do you get your party leader to embrace a message and then stick to it? With people like this
Have you tried new the Independent Digital Edition apps?
Caption competition
Caption competition
  • Get to the point
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

General Election 2015: The masterminds behind the scenes

The masterminds behind the election

How do you get your party leader to embrace a message and then stick to it? By employing these people
Machine Gun America: The amusement park where teenagers go to shoot a huge range of automatic weapons

Machine Gun America

The amusement park where teenagers go to shoot a huge range of automatic weapons
The ethics of pet food: Why are we are so selective in how we show animals our love?

The ethics of pet food

Why are we are so selective in how we show animals our love?
How Tansy Davies turned 9/11 into her opera 'Between Worlds'

How a composer turned 9/11 into her opera 'Between Worlds'

Tansy Davies makes her operatic debut with a work about the attack on the Twin Towers. Despite the topic, she says it is a life-affirming piece
11 best bedside tables

11 best bedside tables

It could be the first thing you see in the morning, so make it work for you. We find night stands, tables and cabinets to wake up to
Italy vs England player ratings: Did Andros Townsend's goal see him beat Harry Kane and Wayne Rooney to top marks?

Italy vs England player ratings

Did Townsend's goal see him beat Kane and Rooney to top marks?
Danny Higginbotham: An underdog's tale of making the most of it

An underdog's tale of making the most of it

Danny Higginbotham on being let go by Manchester United, annoying Gordon Strachan, utilising his talents to the full at Stoke and plunging into the world of analysis
Audley Harrison's abusers forget the debt he's due, but Errol Christie will always remember what he owes the police

Steve Bunce: Inside Boxing

Audley Harrison's abusers forget the debt he's due, but Errol Christie will always remember what he owes the police
No postcode? No vote

Floating voters

How living on a houseboat meant I didn't officially 'exist'
Louis Theroux's affable Englishman routine begins to wear thin

By Reason of Insanity

Louis Theroux's affable Englishman routine begins to wear thin
Power dressing is back – but no shoulderpads!

Power dressing is back

But banish all thoughts of Eighties shoulderpads
Spanish stone-age cave paintings 'under threat' after being re-opened to the public

Spanish stone-age cave paintings in Altamira 'under threat'

Caves were re-opened to the public
'I was the bookies’ favourite to be first to leave the Cabinet'

Vince Cable interview

'I was the bookies’ favourite to be first to leave the Cabinet'
Election 2015: How many of the Government's coalition agreement promises have been kept?

Promises, promises

But how many coalition agreement pledges have been kept?
The Gaza fisherman who built his own reef - and was shot dead there by an Israeli gunboat

The death of a Gaza fisherman

He built his own reef, and was fatally shot there by an Israeli gunboat